The Cheapest Chapter 7 Bankruptcy: $125

You think you can't afford to file a chapter 7 bankruptcy.  You visited a chapter 7 bankruptcy attorney and discovered that it is going to cost over $1000 to file Chapter 7 bankruptcy.  You start browsing on the internet and discover that a paralegal will prepare paperwork for you for $125. 

You better think twice.  There are good reasons why a California bankruptcy attorney will not charge $125.  Unlike a paralegal, a chapter 7 bankruptcy attorney will conduct legal research and render a legal opinion to make sure that bankruptcy is the right fit.  He or she will go to court and represent you when you are examined by a chapter 7 panel trustee.  If any unpleasant issues arise, like an angry creditor, the issue will be handled by the attorney.  If the attorney messes up, there will likely be malpractice insurance in place to help fix the mistake. 

By hiring a paralegal, you will be on your own after the paperwork is completed.  No legal research.  You will go to court by yourself.  Any issues that arise in the bankruptcy will be your problem.  In the Central Valley of California, there are many competent attorneys assisting people in filing chapter 7 bankruptcy.  The fees are competitive.   Therefore, think twice before trying to save a few dollars. 

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Photo credit:  http://www.flickr.com/photos/ecastro/

What Happens To Marrital Debt When One Divorcing Spouse Files Bankruptcy?

Divorce can result from the stress of dealing with marital debt.  Bankruptcy and divorce often go hand-in-hand. 

Often one spouse wants to file bankruptcy and the other spouse dissents.  Thus, the question is what happens with the debt when the husband files divorce by himself? 

Answer: The husband is no longer liable on any of the unsecured debt.  Not his separate or the marriage's joint debt.  Because California is community property state, his separate debt -- incurred while married -- will be owed by the non-filing wife.  It is a rough rule.  Now, she will have to be concerned about handling repayment of all the debt.   

If the couple is in the process of divorce, the family court judge may have some leeway in taking that fact into consideration when awarding other community property and/or spousal support.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Photo Credit: http://www.flickr.com/photos/daquellamanera/

Creditor Files A Lien After A Chapter 7 Bankruptcy

Sometimes after a client files bankruptcy, a creditor who had an unsecured debt files a lien with a judgment obtained before the bankruptcy was filed.

The lien is likely invalid and can be removed.  Most likely, the creditor did not have knowledge of the bankruptcy when the abstract judgment was recorded.  By contacting the creditor or their lawyer directly they will voluntarily remove the lien.  

If the creditor refuses, an adversary proceeding in the bankruptcy court can be filed to remove the lien and possibly seek monetary damages for a violation of the fair debt collection acts.  Because of the time and cost, hopefully this will not be necessary. 

But you should review all of the facts with an attorney and then take steps to get it removed as soon as possible.  

Ken Jorgensen, California Attorney

www.fresnobankruptcylawgroup.com

  Photo credit: http://www.flickr.com/photos/jaxxon/