If you’re considering filing bankruptcy in Fontana, CA, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

When grappling with overwhelming debt in Fontana, CA, many people consider the possibility of bankruptcy. But how do you know if you’re qualified? The process of determining eligibility is multifaceted.

The Means Test

For those considering Chapter 7 bankruptcy, the Means Test is a pivotal assessment. First, your monthly income is measured against California’s median income for a household of your size. If you earn less than this median, you’re automatically eligible. However, if your income exceeds this amount, you’re not out of the running. The Means Test will evaluate your disposable income by deducting specific monthly expenses from your monthly income. If there’s little to no money left after this, you may still qualify for Chapter 7.

Previous Bankruptcies

Bankruptcy isn’t a once-in-a-lifetime option. However, there are limits. If you’ve filed for Chapter 7 bankruptcy, you must wait eight years before filing again. For Chapter 13, the waiting period is only two years.

Mandatory Counseling

California mandates that anyone filing for bankruptcy must first undergo credit counseling with an approved agency. This step ensures that individuals fully comprehend their financial situation and potential alternatives to bankruptcy.

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Do You Need a Lawyer to File For Bankruptcy in Fontana, CA?

Bankruptcy laws are intricate, making the decision to hire an attorney crucial. While filing “pro se” is an option, without proper legal counsel, you risk making costly mistakes.

Advantages of Hiring an Attorney

1. Expertise: Bankruptcy attorneys can guide you on which type of bankruptcy to file, optimizing the outcome in your favor.
2. Paperwork: Legal documents can be complex. An attorney ensures accuracy, minimizing chances of case dismissal.
3. Representation in Court: Having an attorney during hearings provides assurance and promotes proper legal representation.

The Cost of Not Having One

While hiring an attorney involves fees, not having one could be more costly. Mistakes in the filing process could lead to the loss of assets or even case dismissal, prolonging your financial distress.

Cost to File Chapter 7 Bankruptcy in Fontana, CA

Termed “liquidation bankruptcy,” Chapter 7 aims to erase most unsecured debts. However, it’s essential to consider the associated costs.

Breakdown of Costs

1. Filing Fees: $398.
2. Attorney Fees: Varying widely, these can be between $1,200 to $2,900 or more, contingent on case intricacy.
3. Counseling and Education: Pre and post-filing courses, usually under $150, are mandatory.

Potential Additional Costs

While the above are standard, there might be additional costs, like reaffirmation agreement fees or fees for amending documents.

Cost to File Chapter 11 Bankruptcy in Fontana, CA

Primarily for businesses, Chapter 11, a reorganization bankruptcy, lets entities repay creditors while retaining operations.

Breakdown of Costs

1. Filing Fees: At $1,798, this is steeper than other bankruptcy types.
2. Attorney Fees: Due to Chapter 11’s complexity, fees can be substantial, ranging from $10,000 to $50,000 or more.
3. Administrative Fees: Regular monthly reporting can add to the cost.

Cost to File Chapter 13 Bankruptcy in Fontana, CA

Chapter 13, designed for individuals with a steady income, formulates a repayment plan for debts.

Breakdown of Costs

1. Filing Fees: Standing at $393.
2. Attorney Fees: These can differ, but courts often set a “no-look” fee, typically between $3,800 to $5,900 in California.
3. Counseling and Courses: Pre and post-filing courses are necessary, usually costing under $150.

Why Choose Chapter 13?

While the costs are similar to Chapter 7, Chapter 13 offers advantages like preventing home foreclosure, making it a preferable option for some.

In wrapping up, considering bankruptcy in Fontana, CA requires thorough research and understanding. The associated costs, benefits, and challenges should be weighed carefully, preferably with legal guidance. While the process can be daunting, with the right information and support, it can be a significant step towards financial freedom.

Reliable Bankruptcy Attorneys in Fontana, CA

Below is a list of reputable bankruptcy attorneys in Fontana, CA. They can help you with both personal and business bankruptcy information.

Hedtke Law Firm

7426 Cherry Ave suite 210-312, Fontana, CA 92336, United States

Edward G. Operini

16820 Ivy Ave, Fontana, CA 92335

Fontana, CA Zip Codes We Proudly Serve:

91739, 92316, 92335, 92336, 92337, 92377

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