Bankruptcy can be a lifeline for individuals and businesses facing overwhelming financial challenges in Glendale, California. Understanding the qualifications, legal requirements, and associated costs is crucial before embarking on this significant financial decision. In this comprehensive guide, we will delve into various aspects of bankruptcy in Glendale, including who qualifies, the need for legal representation, and the costs associated with filing under different chapters.

Am I Qualified for Bankruptcy?

When considering bankruptcy in Glendale, CA, the first question to answer is whether you qualify for this legal remedy. Bankruptcy is not a one-size-fits-all solution, and eligibility criteria may vary depending on the chapter under which you wish to file.

1. Chapter 7 Bankruptcy Qualifications

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is available to individuals and businesses in Glendale, CA, who meet specific income and asset requirements. To qualify, you must pass the means test, which evaluates your income against the state median income for a household of your size. If your income is below the median, you are likely eligible for Chapter 7. However, if your income exceeds the median, your eligibility may be determined based on your ability to repay your debts.

2. Chapter 11 Bankruptcy Qualifications

Chapter 11 bankruptcy primarily serves businesses in Glendale, CA, allowing them to reorganize and continue operations while repaying their debts. Qualifying for Chapter 11 is less straightforward than Chapter 7, as there are no strict income limits. Instead, eligibility depends on your ability to propose and execute a feasible reorganization plan that addresses your financial difficulties.

3. Chapter 13 Bankruptcy Qualifications

Chapter 13 bankruptcy is tailored for individuals with a regular income who want to create a manageable repayment plan for their debts. To qualify for Chapter 13 in Glendale, CA, you must have sufficient income to meet your essential living expenses and commit to repaying your debts over a three to five-year period.

4. Legal Assistance for Determining Eligibility

While it is possible to assess your eligibility for bankruptcy in Glendale on your own, consulting with a qualified bankruptcy attorney is advisable. An attorney can help you navigate the complex eligibility criteria, evaluate which chapter best suits your situation, and provide expert guidance throughout the process, increasing your chances of a successful bankruptcy filing.

RESOURCES:

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

The decision to hire a lawyer when filing for bankruptcy in Glendale, CA, is a critical one. While it is legally possible to file bankruptcy pro se (without legal representation), there are significant advantages to having an experienced bankruptcy attorney by your side.

1. Legal Expertise and Guidance

Bankruptcy law is intricate, and the process can be daunting for those unfamiliar with its complexities. A skilled attorney in Glendale, CA, can provide you with the expertise and guidance needed to navigate the legal requirements, paperwork, and court proceedings effectively.

2. Personalized Assessment

A bankruptcy attorney will assess your unique financial situation and help you determine the most appropriate chapter under which to file. They can identify potential issues and recommend strategies to maximize the benefits of bankruptcy while minimizing its drawbacks.

3. Protection Against Errors

Filing for bankruptcy involves a substantial amount of paperwork and adherence to strict timelines. A minor mistake or missed deadline could lead to delays, dismissals, or even the loss of assets. Having an attorney ensures that all documents are prepared correctly and submitted on time, reducing the risk of costly errors.

4. Representation in Court

If your bankruptcy case requires court appearances or hearings in Glendale, CA, an attorney can represent you professionally, ensuring that your rights and interests are protected. This can be especially valuable in contentious or complicated cases.

5. Negotiation with Creditors

A bankruptcy attorney can negotiate with creditors on your behalf, potentially reaching settlements that are more favorable than what you could achieve on your own. They can also help you understand the impact of bankruptcy on your assets, such as your home or car.

6. Peace of Mind

Dealing with financial distress and bankruptcy can be emotionally draining. Having a lawyer handle the legal aspects of your case can provide you with peace of mind, allowing you to focus on rebuilding your financial future.

While hiring an attorney for bankruptcy in Glendale, CA, comes with associated costs, the potential benefits in terms of successful bankruptcy proceedings and improved financial outcomes often outweigh these expenses.

Cost to File Chapter 7 Bankruptcy in Glendale, CA

The cost of filing for Chapter 7 bankruptcy in Glendale, CA, is a concern for many individuals seeking relief from overwhelming debt. Understanding the various expenses involved can help you prepare for this financial step.

1. Filing Fee and Administrative Costs

The primary cost associated with filing Chapter 7 bankruptcy in Glendale, CA, is the filing fee, which is paid to the bankruptcy court. The filing fee for Chapter 7 was approximately $335. Additionally, there may be administrative costs, such as fees for credit counseling and debtor education courses, which can total around $50 to $100.

2. Attorney’s Fees

If you choose to hire an attorney to guide you through the bankruptcy process, their fees will be a significant expense. Attorney fees can vary widely depending on your location in Glendale, the complexity of your case, and the attorney’s experience. On average, Chapter 7 bankruptcy attorney fees may range from $1,000 to $3,500 or more.

3. Credit Counseling and Debtor Education

Before and after filing for Chapter 7 bankruptcy in Glendale, CA, you are required to complete credit counseling and debtor education courses from approved providers. These courses typically cost between $25 and $50 each.

4. Miscellaneous Costs

There may be additional expenses associated with your bankruptcy case, such as fees for obtaining credit reports, notary services, or document preparation services. These costs can vary depending on your specific circumstances.

It’s essential to note that bankruptcy fees and costs can change over time. Therefore, it’s advisable to check with the bankruptcy court, your attorney, or reliable online sources for the most up-to-date fee information if you’re considering Chapter 7 bankruptcy in Glendale.

Cost to File Chapter 11 Bankruptcy in Glendale, CA

Chapter 11 bankruptcy is primarily designed for businesses in Glendale, CA, looking to reorganize their debts and continue operations. However, the costs associated with filing under Chapter 11 can be substantial due to the complexity of the process.

1. Filing Fee and Administrative Costs

Similar to Chapter 7, Chapter 11 bankruptcy in Glendale, CA, requires payment of a filing fee, which can be substantial. The exact amount of the filing fee varies depending on the size and complexity of the case. The filing fee for Chapter 11 bankruptcy could range from approximately $1,717 to $3,765 or more.

2. Attorney’s Fees

Chapter 11 bankruptcy is a highly intricate and specialized area of law, and the legal fees associated with it can be significant. The cost of hiring an experienced bankruptcy attorney to represent your business can vary widely, often depending on factors such as the complexity of your financial situation and the size of your company.

3. Ongoing Administrative Expenses

Chapter 11 cases often involve ongoing administrative expenses, which may include fees for financial advisors, accountants, and other professionals necessary for developing and implementing a reorganization plan. These costs can add up considerably over the course of the bankruptcy proceedings.

4. Court Oversight Fees

In Chapter 11 cases, the bankruptcy court may appoint a trustee or examiner to oversee the reorganization process. The fees for these professionals are typically paid from the company’s assets and can be substantial.

5. Plan Confirmation Costs

Developing and obtaining court approval for a Chapter 11 reorganization plan can be a lengthy and costly process. Legal and administrative fees associated with plan confirmation can significantly impact the overall cost of Chapter 11 bankruptcy.

6. Operational Costs

During the bankruptcy process, the business must continue to operate. This includes covering ongoing expenses such as payroll, rent, utilities, and other operational costs. These expenses can strain the financial resources of the business.

Chapter 11 bankruptcy is a complex and expensive process, and it’s crucial for businesses in Glendale, CA, to carefully consider the costs and benefits before pursuing this option. Engaging with an experienced bankruptcy attorney to assess your situation and guide you through the process is highly advisable.

Cost to File Chapter 13 Bankruptcy in Glendale, CA

Chapter 13 bankruptcy is a viable option for individuals in Glendale, CA, who have a regular income and want to create a structured repayment plan for their debts. Understanding the costs associated with Chapter 13 bankruptcy is essential when considering this path to debt relief.

1. Filing Fee and Administrative Costs

As with other bankruptcy chapters, Chapter 13 requires payment of a filing fee. The filing fee for Chapter 13 bankruptcy was approximately $310. Additionally, you’ll need to complete credit counseling and debtor education courses, which can cost between $25 and $50 each.

2. Attorney’s Fees

Hiring an attorney to guide you through the Chapter 13 bankruptcy process in Glendale, CA, is highly recommended. An attorney will help you develop a viable repayment plan and ensure that all legal requirements are met. Attorney fees for Chapter 13 cases vary based on your location, the complexity of your case, and the attorney’s experience, but they typically range from $2,500 to $5,000 or more.

3. Trustee Fees

In Chapter 13 bankruptcy, a bankruptcy trustee is appointed to administer your case and oversee your repayment plan. The trustee is entitled to a percentage of your monthly payments as compensation for their services.

4. Plan Payments

Under Chapter 13, you’ll be required to make monthly payments to the bankruptcy trustee, who will distribute the funds to your creditors according to your court-approved repayment plan. The amount of your plan payments will depend on various factors, including your income, expenses, and the amount of debt you owe.

5. Miscellaneous Costs

There may be additional costs associated with your Chapter 13 bankruptcy case, such as fees for obtaining credit reports, notary services, or document preparation services. These costs can vary depending on your specific circumstances.

It’s important to note that Chapter 13 bankruptcy allows you to structure the repayment of your debts over a three to five-year period, making it a more manageable option for individuals with a regular income. While there are associated costs, Chapter 13 can provide a structured path to debt relief and a fresh financial start.

Bankruptcy in Glendale, CA, is a complex legal process with various chapters and eligibility criteria. Understanding whether you qualify, the importance of legal representation, and the costs involved in filing under different chapters is crucial before making this significant financial decision.

While bankruptcy can offer a fresh start for individuals and businesses struggling with debt, it’s essential to approach it with careful consideration and professional guidance. Consulting with an experienced bankruptcy attorney in Glendale, CA, can help you navigate the intricacies of the bankruptcy process and make informed choices that best suit your financial situation. Ultimately, with the right knowledge and support, bankruptcy can be a powerful tool for achieving financial stability and a brighter future.

Reliable Bankruptcy Attorneys in Glendale, CA

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

Bankruptcy & Living Trusts Office Sevan Gorginian

516 Burchett St Suite 200, Glendale, CA 91203, United States

Kedikian Bankruptcy Law

220 S Kenwood St #310, Glendale, CA 91205, United States

Reganyan Law Firm

100 N Brand Blvd Suite #18, Glendale, CA 91203, United States

Borowitz & Clark, LLP

100 N Brand Blvd #636, Glendale, CA 91203, United States

Glendale, CA Zip Codes We Proudly Serve:

90039, 91011, 91020, 91046, 91201, 91202, 91203, 91204, 91205, 91206, 91207, 91208, 91210, 91214

---