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

Am I Qualified for Bankruptcy?

If you’re struggling with debt in Irvine, CA, you may be wondering if you qualify for bankruptcy. Not everyone can just decide to file for bankruptcy; there are certain requirements one must meet.

In Irvine, as in the rest of the U.S., to file for Chapter 7 bankruptcy, you need to pass the “means test.” This test assesses your income in relation to your debts. If your income is below the median income for a household of your size in California, you may qualify. However, if your income is higher, other calculations are made to determine your eligibility.

For Chapter 13 bankruptcy, you must prove you have a regular source of income and the capability to make payments to your creditors. There are also debt limits for Chapter 13. The limit is set at $425,275 for unsecured debts and $1,265,850 for secured debts. These numbers may have adjusted, so it’s essential to verify current limits.

Chapter 11 bankruptcy, mainly used by businesses but available to individuals, doesn’t have an explicit income requirement. Instead, it focuses on reorganizing the debtor’s obligations.

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

While it’s not a legal requirement to hire a lawyer to file for bankruptcy, it’s highly recommended. Bankruptcy laws can be complex, and having an attorney can help ensure that you file correctly and benefit from all protections the law provides.

Without legal guidance, you might miss crucial steps or make errors in your filing, potentially jeopardizing your chance for debt discharge or making the process longer and more challenging. Moreover, an experienced bankruptcy attorney can advise on whether bankruptcy is the best choice for your situation.

Cost to File Chapter 7 Bankruptcy in Irvine, CA

The cost to file for Chapter 7 bankruptcy consists of two main components: the filing fee and attorney fees.

The filing fee is set at $358, but this number can change. Check with local bankruptcy courts or their website for the most current fee.

Attorney fees can vary widely based on the complexity of your case and the lawyer’s experience. In Irvine, it’s not uncommon for attorney fees for Chapter 7 to range from $1,299 to $2,900.

Cost to File Chapter 11 Bankruptcy in Irvine, CA

Chapter 11 bankruptcy, while mainly used by businesses, can also be filed by individuals. It is a method that allows debtors to reorganize their debts and propose a repayment plan to creditors. Given its complexity and the need for frequent legal interventions, it tends to be one of the most expensive bankruptcy options.

• Filing Fee: The filing fee for a Chapter 11 bankruptcy was $1,938. It’s crucial to regularly check with the local bankruptcy court or its official website for the most current fee as these fees may change.
• Attorney Fees: Due to the intricacies involved in a Chapter 11 case, attorney fees can be significant. In Irvine, CA, depending on the complexity of the case, the range for legal fees can span from $12,000 to well over $110,000. For complex cases involving contested matters or a substantial amount of assets and debts, fees can even be higher. Some attorneys may also charge hourly rates, which can add to the cost based on the number of hours they dedicate to your case.
• Miscellaneous Costs: These may include fees for financial professionals, accountants, or other experts who might be needed to help structure the reorganization plan or assess the debtor’s financial position.

Cost to File Chapter 13 Bankruptcy in Irvine, CA

Chapter 13 bankruptcy, often referred to as a “wage earner’s plan,” allows individuals with regular income to develop a plan to repay all or part of their debts over a three to five-year period.

• Filing Fee: The filing fee for Chapter 13, based on 2023 data, is $393. It’s important to confirm the latest fee with the local bankruptcy court or its website.
• Attorney Fees: In Chapter 13 cases, attorney fees tend to be more standardized than in Chapter 11 or 7 due to many courts setting a “no-look” fee. This fee is an agreed-upon standard rate that is considered reasonable by the courts. In Irvine, CA, these fees might range between $3,900 to $6,400. It’s advisable, however, to get quotes from multiple attorneys and understand exactly what services are being provided for the fee.
• Trustee’s Commission: In Chapter 13 bankruptcy, there is also the consideration of a trustee’s commission, which is a percentage of the payments made under the repayment plan. This commission can vary but is capped by law.

The costs associated with filing for bankruptcy in Irvine, CA can vary significantly based on the type of bankruptcy and the specificities of each case. Before committing to a particular path, it’s always wise to be well-informed and to consult with a bankruptcy attorney to get a clearer picture of potential costs and benefits.

Reliable Bankruptcy Attorneys in Irvine, CA

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

Red Hill Law Group

15615 Alton Pkwy #210, Irvine, CA 92618, United States

McFarlin LLP

4 Park Plaza #1025, Irvine, CA 92614, United States

Financial Relief Law Center, APC

1200 Main St suite c, Irvine, CA 92614, United States

The Law Office of Gary Polston

15635 Alton Pkwy STE 300, Irvine, CA 92618, United States

Irvine, CA Zip Codes We Proudly Serve:

92602, 92603, 92604, 92606, 92610, 92612, 92614, 92617, 92618, 92620, 92630, 92660, 92676, 92780, 92782

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