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

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Long Beach, California, or anywhere in the United States, is determined by various factors and depends on the specific chapter of bankruptcy you intend to file. There are several chapters of bankruptcy available to individuals and businesses, but the two most common for individuals are Chapter 7 and Chapter 13. Each has its own eligibility criteria, and it’s crucial to understand these criteria before deciding which chapter to pursue.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” allows individuals to discharge most unsecured debts, such as credit card debt, medical bills, and personal loans. However, not everyone qualifies for Chapter 7, and eligibility is primarily determined through a means test.

The means test evaluates your income and expenses to determine if you have enough disposable income to repay your debts. To qualify for Chapter 7 in Long Beach, CA, you must:

1. Pass the Means Test: The means test compares your average monthly income over the six months preceding your bankruptcy filing to the median income for a household of your size in California. If your income is below the median, you generally qualify for Chapter 7. If it’s above the median, further calculations are done to determine if you have enough disposable income to repay a portion of your debts under Chapter 13.
2. Not Have Engaged in Bankruptcy Abuse: You cannot have had a bankruptcy case dismissed for abuse within the previous 180 days. Abuse typically involves attempting to defraud creditors or misusing the bankruptcy system.
3. Not Have Filed a Recent Bankruptcy: If you’ve previously filed for Chapter 7 bankruptcy and received a discharge, you must wait eight years from the date of your previous filing to file another Chapter 7 case and receive a discharge.

It’s essential to note that even if you meet the income criteria, there are other factors to consider, such as the nature of your debts and your overall financial situation.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy is often referred to as “reorganization bankruptcy” because it allows individuals with a regular income to create a repayment plan to catch up on past-due debts over a three to five-year period. Unlike Chapter 7, there are no strict income limits for Chapter 13 eligibility. However, you must meet the following requirements:

1. Regular Income: You need a regular source of income to fund your Chapter 13 repayment plan. This income can come from various sources, such as employment, self-employment, Social Security, or other benefits.
2. Secured Debt Limit: Your secured debts (e.g., mortgages and car loans) must be below a certain limit to qualify for Chapter 13. These limits may have been adjusted for inflation since then, so it’s essential to consult updated information.
3. Commitment to the Repayment Plan: You must be willing and able to adhere to a court-approved repayment plan that addresses your past-due debts and a portion of your unsecured debts.
4. No Recent Chapter 13 Discharge: If you previously filed for Chapter 13 and received a discharge, you must wait two years from the date of your previous filing to file another Chapter 13 case.
5. Not Have Filed a Recent Chapter 7 Bankruptcy: If you’ve filed for Chapter 7 bankruptcy and received a discharge, you must wait four years from the date of your previous filing to file for Chapter 13.

It’s important to consult with a qualified bankruptcy attorney in Long Beach, CA, to assess your specific financial situation and determine which chapter of bankruptcy you may qualify for. Bankruptcy laws and regulations can change over time, so it’s essential to have up-to-date guidance when considering bankruptcy as a debt relief option. Additionally, an attorney can help you navigate the bankruptcy process and ensure that you meet all eligibility requirements and deadlines.

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

Filing for bankruptcy in Long Beach, California, is a complex legal process that involves significant paperwork, financial analysis, and adherence to strict timelines and regulations. While it is possible to file for bankruptcy without an attorney, it is highly advisable to seek legal counsel to navigate this intricate process effectively.

Here are some key reasons why you should consider hiring a lawyer when filing for bankruptcy:

1. Expertise and Knowledge: Bankruptcy law is intricate and subject to frequent changes. An experienced bankruptcy attorney in Long Beach will have a deep understanding of the relevant federal and California bankruptcy laws, as well as local court rules and procedures. They can provide you with invaluable insights and guidance to ensure that your case is handled correctly.
2. Evaluation of Options: An attorney can assess your financial situation and help you determine whether bankruptcy is the most suitable solution for your specific circumstances. They can also advise you on which chapter of bankruptcy (Chapter 7 or Chapter 13) is best suited to your needs, or if alternative debt relief options, such as debt consolidation or negotiation, might be more appropriate.
3. Legal Protection: Bankruptcy attorneys provide a layer of legal protection by ensuring that you understand your rights and responsibilities throughout the bankruptcy process. They can help you avoid common pitfalls and ensure that you do not inadvertently engage in actions that could be perceived as fraudulent or abusive by the court.
4. Documentation and Paperwork: Filing for bankruptcy involves extensive paperwork, including detailed financial disclosures and petitions. An attorney can help you gather and organize the required documents, accurately complete the paperwork, and submit it to the court within the specified deadlines. This reduces the risk of errors and can expedite the process.
5. Creditor Communication: Once you file for bankruptcy, creditors are legally required to cease collection efforts and communicate through the bankruptcy court. Your attorney can handle creditor communication on your behalf, preventing harassment and ensuring that all interactions with creditors are in compliance with the law.
6. Representation in Court: Bankruptcy cases may require court appearances, especially if creditors or trustees raise objections or if there are disputes over your bankruptcy plan. Having an attorney by your side provides you with strong legal representation in court, increasing your chances of a favorable outcome.
7. Asset Protection: An attorney can help you understand and utilize exemptions to protect your assets during bankruptcy. This is crucial, especially in Chapter 7 cases, where non-exempt assets may be liquidated to repay creditors.
8. Debt Discharge: Your attorney will guide you through the process of obtaining a debt discharge, which is the primary goal of bankruptcy. They will ensure that you fulfill all requirements and provide you with advice on managing your finances post-bankruptcy.
9. Avoiding Common Mistakes: Bankruptcy petitions are subject to strict rules and regulations. Filing errors or omissions can lead to delays, dismissal of your case, or even legal consequences. An attorney’s attention to detail can help you avoid such mistakes.
10. Peace of Mind: Dealing with financial distress and the bankruptcy process can be emotionally taxing. Having a knowledgeable attorney to handle the legal aspects of your case can provide peace of mind and reduce stress.

While hiring a bankruptcy attorney in Long Beach, CA, involves legal fees, it is an investment in ensuring that your bankruptcy case proceeds smoothly and that you achieve the best possible outcome. Moreover, the potential financial benefits of successful bankruptcy, such as debt discharge and a fresh financial start, often far outweigh the cost of legal representation. If you are considering bankruptcy, it is strongly recommended to consult with an experienced bankruptcy attorney who can assess your situation and guide you through the process effectively.

Cost to File Chapter 7 Bankruptcy in Long Beach, CA

The cost to file Chapter 7 bankruptcy in Long Beach, California, consists of several components, including court filing fees, mandatory credit counseling fees, and attorney fees if you choose to hire an attorney. It’s essential to understand these costs before proceeding with your bankruptcy case.

1. Court Filing Fees: The filing fee for a Chapter 7 bankruptcy case in the Central District of California, where Long Beach is located, is $385. However, these fees can change over time, so it’s essential to verify the current filing fees with the U.S. Bankruptcy Court for the Central District of California or consult with a bankruptcy attorney for up-to-date information.
2. Credit Counseling Fees: Before filing for Chapter 7 bankruptcy, you are required to complete credit counseling from an approved agency. The cost of this counseling typically ranges from $25 to $58. However, some agencies offer fee waivers or reduced fees based on your income. Make sure to choose an agency approved by the U.S. Trustee Program to ensure compliance with bankruptcy requirements.
3. Attorney Fees: While you can technically file for Chapter 7 bankruptcy without an attorney (pro se), many individuals opt to hire an experienced bankruptcy attorney to navigate the process successfully. Attorney fees can vary widely depending on factors such as the complexity of your case and the attorney’s experience. In Long Beach, CA, attorney fees for a straightforward Chapter 7 case might range from $1,180 to $2,800 or more. It’s crucial to discuss fees with potential attorneys and understand what services are included in their representation.
4. Additional Costs: In addition to the above costs, you may incur additional expenses such as credit report fees, postage, photocopying, and notary fees. These expenses can add up, so it’s wise to budget for them as well.
5. Exemption for Low-Income Filers: If your income is less than 150% of the federal poverty guidelines and you are unable to pay the filing fee in installments, you may qualify for a fee waiver. This would exempt you from paying the filing fee upfront. However, you must apply for the fee waiver and meet the eligibility criteria.
6. Payment Plans: Some individuals may be eligible to pay the filing fee in installments. If you cannot afford the full fee upfront, you can request to pay it in up to four installment payments. However, the fee must be paid in full before your bankruptcy case can proceed.

It’s important to note that bankruptcy laws and fees can change over time, so it’s advisable to consult with a bankruptcy attorney or check the U.S. Bankruptcy Court’s website for the most current information. Additionally, keep in mind that the costs associated with filing for Chapter 7 bankruptcy can vary depending on your individual circumstances and the complexity of your case. An experienced bankruptcy attorney can provide a more accurate estimate of the total cost based on your specific situation and can help you navigate the bankruptcy process effectively.

Cost to File Chapter 11 Bankruptcy in Long Beach, CA

Filing for Chapter 11 bankruptcy in Long Beach, California, can be a complex and costly process, primarily intended for businesses, corporations, and individuals with substantial assets and debts. The cost of a Chapter 11 bankruptcy case can vary widely depending on the complexity of the case and the specific circumstances involved. Here are the key components that contribute to the cost of filing Chapter 11 bankruptcy in Long Beach:

1. Attorney Fees: Chapter 11 cases are highly intricate and typically require extensive legal representation. Attorney fees for Chapter 11 cases can be substantial and may vary based on factors such as the size of the business, the complexity of the case, the attorney’s experience, and the amount of work involved. It’s not uncommon for Chapter 11 attorney fees to start at several thousand dollars and increase significantly for more complex cases.
2. Filing Fees: The filing fee for a Chapter 11 bankruptcy case in the Central District of California, where Long Beach is located, is $1,980. However, these fees can change over time, so it’s essential to verify the current filing fees with the U.S. Bankruptcy Court for the Central District of California.
3. U.S. Trustee Fees: In addition to filing fees, Chapter 11 debtors are also required to pay quarterly fees to the U.S. Trustee’s Office. These fees are based on a sliding scale that takes into account the debtor’s disbursements and can vary depending on the size and complexity of the case.
4. Professional Fees: Chapter 11 cases often involve the hiring of professionals such as financial advisors, appraisers, and accountants to assist with the reorganization and restructuring process. These professionals typically charge fees for their services, which can be significant depending on the scope of their work.
5. Court Costs: There may be additional court-related costs and expenses associated with a Chapter 11 case, including fees for filing motions, serving notices, and attending hearings.
6. Creditors’ Committee Fees: In some Chapter 11 cases, a creditors’ committee may be formed to represent the interests of creditors. The costs associated with the creditors’ committee, such as legal and professional fees, may also be borne by the debtor.
7. Administrative Expenses: Debtors are responsible for covering the administrative expenses of the bankruptcy estate, which can include costs related to operating the business during bankruptcy, maintaining property, and other necessary expenses.
8. Plan Confirmation Costs: The process of developing and confirming a Chapter 11 reorganization plan can be time-consuming and costly. Costs associated with drafting the plan, obtaining creditor approval, and the costs of litigation related to plan confirmation can contribute to the overall expense.

It’s important to note that Chapter 11 bankruptcy cases are highly individualized, and the total cost can vary significantly based on the unique circumstances of each case. Debtors pursuing Chapter 11 should carefully consider their financial situation and seek legal advice to understand the potential costs and benefits. An experienced bankruptcy attorney specializing in Chapter 11 cases can provide a more accurate estimate of the total cost based on your specific circumstances and can guide you through the complex process effectively.

Cost to File Chapter 13 Bankruptcy in Long Beach, CA

Filing for Chapter 13 bankruptcy in Long Beach, California, involves various costs that debtors should be aware of. Chapter 13 bankruptcy is often referred to as a “wage earner’s plan” and is designed for individuals with a regular income who want to restructure their debts and create a manageable repayment plan. Here are the key components that contribute to the cost of filing Chapter 13 bankruptcy in Long Beach:

1. Attorney Fees: One of the essential costs associated with filing Chapter 13 bankruptcy is attorney fees. Hiring an experienced bankruptcy attorney is highly advisable, as they will help you navigate the complex process, develop a feasible repayment plan, and represent your interests throughout the case. Attorney fees for Chapter 13 cases can vary based on factors like the complexity of your financial situation, the attorney’s experience, and your geographic location. In Long Beach, CA, attorney fees for a Chapter 13 case might range from $2,800 to $4,800 or more, depending on the circumstances.
2. Filing Fees: The filing fee for a Chapter 13 bankruptcy case in the Central District of California, where Long Beach is located, can change over time, so it’s essential to verify the current filing fees with the U.S. Bankruptcy Court for the Central District of California.
3. Credit Counseling Fees: Before filing for Chapter 13 bankruptcy, you are required to complete credit counseling from an approved agency. The cost of this counseling typically ranges from $24 to $58. However, some agencies offer fee waivers or reduced fees based on your income.
4. Chapter 13 Trustee Fees: In a Chapter 13 case, a trustee is appointed to administer your repayment plan and disburse payments to creditors. The Chapter 13 trustee receives a fee for their services, which is typically included in your monthly plan payments.
5. Credit Report Fees: You may need to obtain credit reports as part of your bankruptcy case. While this cost is usually not significant, it’s an expense to consider.
6. Financial Management Course Fees: After filing for Chapter 13 bankruptcy, you must complete a financial management course from an approved provider. The cost of this course can vary but is typically in the range of $28 to $60.
7. Other Costs: Depending on your specific circumstances, there may be other costs associated with your Chapter 13 case, such as notary fees, postage, or costs related to reaffirming certain debts (if applicable).

Filing for Chapter 13 bankruptcy can provide significant relief for individuals struggling with debt, as it allows for a structured repayment plan while protecting assets from liquidation. It’s crucial to consult with an experienced bankruptcy attorney in Long Beach, CA, who can assess your specific financial situation, explain the potential costs involved, and guide you through the Chapter 13 bankruptcy process effectively.

Reliable Bankruptcy Attorneys in Long Beach, CA

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

Law Office of David P. Farrell
555 E Ocean Blvd #430, Long Beach, CA 90802, United States

LeverLaw – Law Offices of Steven B. Lever
200 Pine Ave #620, Long Beach, CA 90802, United States

Law Offices of Stewart Lim & Associates
100 Oceangate #1200, Long Beach, CA 90802, United States

Goldbach Law Group
111 W Ocean Blvd Suite 400, Long Beach, CA 90802, United States

Wadhwani & Shanfeld
3780 Kilroy Airport Way #200, Long Beach, CA 90806, United States

Long Beach, CA Zip Codes We Proudly Serve:

90713, 90731, 90740, 90755, 90802, 90803, 90804, 90805, 90806, 90807, 90808, 90810, 90813, 90814, 90815, 90822, 90831

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