Santa Barbara Bankruptcy

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Bankruptcy is a legal process that that allows an individual, a married couple, or a business a legal means for making a fresh financial start. Filing for bankruptcy is a right afforded by Federal law and all bankruptcy proceedings are held in the federal courts. Filing bankruptcy, in most cases, puts an immediate stop to all creditor and collections activities while your debt matters are resolved under applicable bankruptcy law.

What are my Santa Barbara Personal Bankruptcy options?

Bankruptcy filings can either be made by an individual and/or a married/domestic couple. There are three basic types of personal bankruptcy filings, Chapter 7, Chapter 12, and Chapter 13. In most cases, individuals or spouses typically file Chapter 7 bankruptcy. Chapter 12 bankruptcy filings are restricted to fisherman and family farmers. Chapter 13 bankruptcy is also for individuals or spouses and is more of a debt restructuring process that allows the individuals (or spouses) to retain many of their assets.

What are my Santa Barbara Business Bankruptcy options?

There are two common forms of bankruptcy filings utilized by businesses, Chapter 7 and Chapter 11. There is also Chapter 9 bankruptcy (or municipal bankruptcy) which is restricted to agencies of the state declaring bankruptcy. Chapter 15 is a less commonly used bankruptcy option for resolving and clearing international debts.

Santa Barbara Chapter 7 Bankruptcy

Chapter 7 bankruptcy for both individuals and business is declared when the individual / business wants a fresh start. Businesses that file Chapter 7 bankruptcy typically shut down their businesses permanently as a result of the bankruptcy. Individuals (or spouses) that file Chapter 7 bankruptcy are declared “unable to pay” by the court and most debts are made void during the legal bankruptcy proceedings. There are certain debts, such as student loans or other federal debts that remain unaffected by declaring Chapter 7 bankruptcy.

Santa Barbara Individuals Filing Chapter 7 Bankruptcy

An individual (or spouse) or business must first generally be able to prove that their income is insufficient to meet the debt amounts. Individuals are at a risk losing most of their assets in a Chapter 7 bankruptcy. Individuals can lose their residence or primary vehicles under Chapter 7 bankruptcy if the individual is unable to maintain the auto loan payments or mortgage payments. In this case, the assets will also be included in the Chapter 7 bankruptcy filings. If an individual is able to maintain their auto loan or mortgage payments, they may retain these assets under the Chapter 7 bankruptcy.

Under Chapter 7 bankruptcy other assets such as additional properties, antiques and collectibles, and additional vehicles will be liquidated to resolve debts. Individuals filing Chapter 7 bankruptcy usually do so as a last option. Upon court approval, the bankruptcy filing eliminates most all debts.

Santa Barbara Chapter 13 Bankruptcy

Chapter 13 bankruptcy is typically filed by individuals who have large amounts of property or assets but their income is no longer able to cover their debt payments. In Chapter 13 bankruptcy the individual’s debt is restructured in order for the individuals to retain their assets and maintain reasonable payments to their debtors. Under Chapter 13 bankruptcy filings, individuals must maintain their court-ordered payments in a regular and timely manner otherwise their assets can be seized.

Santa Barbara Chapter 11 Bankruptcy

Chapter 11 Bankruptcy is similar to Chapter 13, but stipulated for businesses. Under Chapter 11 bankruptcy some of the business debts are cleared and debts restructured under reasonable payment plans. Chapter 11 bankruptcy affords business an opportunity to reorganize their debt and the business is able to stay in operation.

What are some benefits of declaring bankruptcy?

Discharging of debts, which is the elimination of an individual’s legal obligation to pay all (or most) of their debts. Discharging of debts is to give an individual a clean slate.
Prevent or stop wage garnishments, and credit collections actions
Prevent or stop repossession of assets (car, home, other property), or obtain repossessed property for at least the duration of the bankruptcy proceedings
Prevent or stop the foreclosure process on physical or mobile property, giving individuals an opportunity to restructure payments or make payment arrangements

Are there restrictions to declaring bankruptcy?

Bankruptcy is a federally protected right, but is not a solution to all financial circumstances. There are some restrictions to declaring bankruptcy and some things that declaring bankruptcy will not do.

Bankruptcy will not discharge federal loans or other debts that are stipulated by bankruptcy law such as federal student loans, court-ordered restitution, child support, alimony, fines, and some taxes.
Bankruptcy will not eliminate specific rights of secured creditors, wherein the creditor has taken a lien as collateral property, such as home mortgages or auto loans. Individuals may still only retain their collateral property if a payment resolution has been made.
Debts that were not included in the initial bankruptcy filing or debts that arose after the filing will NOT be discharged.
If I am eligible, is there a way to get legal aid somehow when having to pay to file for say Chapter 7 Santa Barbara bankruptcy? I don't know if I have the funds to file for it.
I had a judgment placed on me in which I was required to pay a sum of $4800. A garnishment was used to pay this amount. After keeping track of the payments and amounts, I filed paperwork with the court clerk showing that the amount was paid and they sent paperwork to my employer to stop the wage garnishments. After a period of two years the judgment is still showing on my credit report. I then went back to the court clerk and asked if the case was satisfied and she informed me that I would have to take that up with the plaintiff, which I did. He stated at first that he was never paid, then stated that he was still owed 1800.00 and then he stated he was owed 2600.00. During the garnishment the plaintiff added two additional charges of interest and a process of fee of some sort. I thought after the court awarded him the $4800.00 that that was all that was to be paid. I am very much considering hiring a lawyer to settle this case once and for all. I still cannot get an answer from the plaintiff about why he did not peruse the case after the garnishment stopped, if he felt that he had not paid the full amount of $4800.00. Any suggestions? Do you handle Santa Barbara garnishment cases?

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Santa Barbara Bankruptcy Questions

Recent Sample Questions to the Legal Line

My stepfather died. Both he and my mother were separated, but not legally. He bought a house and she is not on the title. He got behind in the payments - she wants to make up the payments and not have the house go into foreclosure. The mortgage company will not speak to her since she is not on the title of the house. What are her options?

My Mom recently had a stroke and is unable to speak but understands everything you are saying to her. Needless to say she is not working right now and her bank account is slowly getting smaller and smaller. Her house is in very bad condition and she cannot afford to make the repairs and it is not sellable in the condition that it is in. I am considering selling my own house or renting it out or filing for chapter 13 bankruptcy myself to get rid of it all and move into my mom’s house and do the repairs myself and take over the payments. Is this a wise a idea if my husband has already been through bankruptcy? Are there any other options? My mother has also already had to file for medical bankruptcy about 7 years ago. I need a lot of help with this issue and many others.

I have problems with the IRS. I owe 3200.00 and now to stop a levy, I have to set up payments. Is there a way to combine all of these and go bankrupt with them or maybe you have other ideas for me? I do not want to owe the IRS the rest of my life and just want to be even with them and pay my taxes normally.

The credit cards I have been paying on time every month, now have raised interest rates and lowered my limits to look like I maxed them out. I'm thinking of calling one of those places that make arrangements for lowerer interest, and lower pay off. How will that effect my credit - worse than what they have done?

I recently found out that my landlord stopped paying the mortgage on the duplex that I'm renting. I just moved in and I'm on a 24 month lease. My question is am I obligated to continue paying rent? I'm not aware of a Notice of Default being recorded against the property. When speaking with the landlord she has no intention of curing the default. She has not paid the mortgage since last May.

My husband and I have experienced financial difficulties this year with income due to him being furloughed at work on and off. What can a person use regarding credit card debt when they file bankruptcy? And if the credit cards were taken out in my name, but my husband was allowed to use them, do both parties have to file for Santa Barbara bankruptcy , or can only myself file? And if a person has previously filed bankruptcy, and it has been over 7 years, can they file again?

We had an agreement with an agency to pay $100.00/mo. and we have been doing that. Then they turned us over to a collection agency. They have been harassing me at work and want payment in full. We cannot afford it. I do not want to get garnished. I’ve never been turned over to a collection agency before. I sent Nov/Dec payments to the collection agency and they’re not cashing them. What is next?

I have over $100,000 in medical bills that I cannot pay back. My insurance company did not notify me that I was denied insurance because of my pre-existing condition diabetes. I am tired of getting calls and letters from creditors, threatening me. I would like to know the easiest and fastest way to go about this.

My checking account joint with my husband was recently garnished for my husband's credit card debt. We are unable to pay the bill and the lowest monthly payment they have offered we still cannot pay because he is the only one working. We are in need of a checking account to keep our auto and life insurance. What can we do?

My business is going through a hard time. I would like to file for bankruptcy to try to restructure the company. I don't want to continue working to try to pay off the amount due. What will happen to my personal assets, like my homes?

Ive been trying to get a loan mod on my home. I am six months behind and the bank will not negotiate. I have heard from some lawyers that all who claim to help with loan mods are frauds and that I could do it myself. Now that the bank says no to me, do I have a better chance with a Santa Barbara loan modification attorney? Will bankruptcy help me in this case? What is the cost for a consultation with a Santa Barbara bankruptcy law firm in this matter?

My husband and I have a Santa Barbara rental home that we've been renting for several years and have had a hard time trying to sell. We are considering a Santa Barbara short sale or possible foreclosure. Do we need to declare bankruptcy? Do we need a real estate attorney to handle this? Will these cause judgments on the home and cars that we own here?

I have been inundated with letters from realtors, stating that my new house of 8 months is in foreclosure. My title comp here in Santa Barbara said not to worry - I have deed warranty Insurance. Am I really safe?

*Always consult a legal professional in person before taking any legal action related to your case or situation.

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