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

Am I Qualified for Bankruptcy?

Filing for bankruptcy is a complex legal process designed to provide individuals and businesses with a fresh start when overwhelmed by debt. Whether you are qualified to file for bankruptcy in Pasadena, California, or anywhere else in the United States, depends on several factors, including your financial situation, the type of bankruptcy you’re considering, and whether you meet certain eligibility requirements established by federal bankruptcy laws.

1. Residency and Venue: To file for bankruptcy in Pasadena, you generally need to be a resident of California or have a significant connection to the state, such as owning property or conducting business there. Additionally, you should file in the correct bankruptcy court, which in the case of Pasadena, would be the United States Bankruptcy Court for the Central District of California.
2. Types of Bankruptcy: There are two primary types of bankruptcy for individuals: Chapter 7 and Chapter 13.
   • Chapter 7: To qualify for Chapter 7 bankruptcy, you must pass a means test, which assesses your income and expenses. If your income is below the median income for a household of your size in California, you generally qualify. If your income is above the median, you may still qualify based on a more detailed analysis of your expenses and disposable income.
   • Chapter 13: Chapter 13 bankruptcy is designed for those with a regular income who can repay a portion of their debts over a specified period, typically three to five years. To qualify, you must have enough disposable income to meet your repayment obligations under the proposed Chapter 13 plan.
3. Credit Counseling Requirement: Before you can file for bankruptcy, you must complete a credit counseling course from an approved agency. This requirement applies to both Chapter 7 and Chapter 13 bankruptcy and is aimed at helping individuals explore alternatives to bankruptcy.
4. Bankruptcy Education Course: After filing but before receiving a discharge, you must also complete a financial management course, which teaches you how to manage your finances and debt better.
5. Previous Bankruptcies: There are limits on how frequently you can receive a discharge in bankruptcy. For example, if you’ve received a Chapter 7 discharge within the past eight years, you generally won’t be eligible for another Chapter 7 discharge. For Chapter 13, there’s a limit of four years between filings.
6. Criminal Activity: If you have committed certain types of financial crimes or engaged in fraudulent behavior, you may be disqualified from filing for bankruptcy.
7. Good Faith Filing: To be eligible for bankruptcy relief, you must file your case in good faith. This means you can’t use bankruptcy as a way to commit fraud or manipulate the system to your advantage.
8. Legal Representation: While not a strict eligibility requirement, it’s highly recommended that you consult with a bankruptcy attorney in Pasadena or a legal professional familiar with California bankruptcy laws. They can help you understand your options, navigate the complex legal process, and ensure you meet all the necessary requirements.
9. Debt Amount: There is no specific minimum or maximum amount of debt required to file for bankruptcy. However, your financial situation should be such that bankruptcy provides a meaningful solution to your debt problems.
10. Income and Expenses: In both Chapter 7 and Chapter 13 bankruptcy, your income, expenses, and overall financial situation will be carefully examined. You will need to provide detailed information about your finances, including assets, debts, income, and expenditures.

It’s important to note that bankruptcy laws are subject to change, and eligibility criteria may be updated or modified. Therefore, it’s advisable to consult with a bankruptcy attorney or check the latest information from the United States Bankruptcy Court for the Central District of California to ensure you meet the current requirements for filing bankruptcy in Pasadena.

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

While it is possible to file for bankruptcy in Pasadena, California, without a lawyer (also known as “pro se” filing), it is generally advisable to seek legal representation when pursuing bankruptcy proceedings. Here are several reasons why having an attorney is beneficial:

1. Complexity of Bankruptcy Laws: Bankruptcy law is intricate and continually evolving. Attorneys specializing in bankruptcy are well-versed in the complexities of both federal and state bankruptcy laws. They can help you navigate these laws, ensuring you understand your rights, obligations, and the potential consequences of your bankruptcy filing.
2. Legal Expertise and Experience: Bankruptcy attorneys have the knowledge and experience necessary to guide you through the entire bankruptcy process. They can assess your financial situation, advise you on the most appropriate type of bankruptcy (Chapter 7 or Chapter 13), and help you make informed decisions about your assets and debts.
3. Proper Documentation: Filing for bankruptcy requires extensive paperwork and documentation. An attorney can assist you in gathering the necessary financial records, completing the required forms accurately, and ensuring that all supporting documents are in order. This reduces the risk of errors or omissions that could lead to complications or delays in your case.
4. Protection from Creditors: Once you file for bankruptcy, an automatic stay is typically issued. This legal order prevents creditors from pursuing collection actions, such as lawsuits, wage garnishments, or foreclosure. An attorney can communicate with creditors on your behalf and inform them of the stay to protect your rights and assets.
5. Chapter 13 Repayment Plan: If you choose to file for Chapter 13 bankruptcy, your attorney can help you create a feasible repayment plan that meets the court’s approval. They will work with you to develop a plan that addresses your financial circumstances while ensuring compliance with bankruptcy laws.
6. Legal Representation in Court: If any disputes or objections arise during your bankruptcy proceedings, having an attorney is invaluable. They can represent you in court, negotiate with creditors or the bankruptcy trustee, and advocate for your interests to achieve the best possible outcome.
7. Asset Protection: Bankruptcy exemptions and asset protection strategies vary by state. An experienced attorney will be familiar with California’s exemptions and can help you protect your assets to the fullest extent allowed by law.
8. Avoiding Common Pitfalls: Many individuals who attempt to file for bankruptcy on their own make errors that can be costly or even result in dismissal of their case. Attorneys can help you avoid common pitfalls, such as failing to disclose assets, not meeting legal requirements, or making inaccurate claims.
9. Post-Bankruptcy Guidance: After your bankruptcy is complete, you may still need guidance on rebuilding your credit and managing your finances. Attorneys can offer valuable advice on post-bankruptcy financial management and credit repair.
10. Peace of Mind: Bankruptcy can be emotionally taxing, and it’s crucial to have someone on your side who understands the process and can provide you with peace of mind. Knowing that an attorney is handling your case can alleviate stress and anxiety.

However, if you are determined to file for bankruptcy without an attorney, it’s essential to thoroughly research the process, consult reputable resources, and consider seeking assistance from legal aid organizations or pro bono services if you cannot afford an attorney’s fees. Keep in mind that bankruptcy court clerks and judges cannot provide legal advice, so it’s crucial to educate yourself about the law and procedures or consult with a professional if you choose to proceed pro se.

Cost to File Chapter 7 Bankruptcy in Pasadena, CA

Filing for Chapter 7 bankruptcy in Pasadena, California, involves several costs and fees. It’s essential to understand these costs before proceeding with your bankruptcy filing.

1. Filing Fee: The primary cost of filing for Chapter 7 bankruptcy is the filing fee, which is paid to the United States Bankruptcy Court. It’s important to note that these fees can change over time due to inflation or adjustments by the court. Therefore, it’s advisable to check the current filing fee on the official website of the United States Bankruptcy Court for the Central District of California or consult with an attorney.
2. Credit Counseling and Financial Management Courses: Before and after filing for bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. These courses typically cost between $29 and $59 each. Some agencies may offer fee waivers or reduced fees based on your income.
3. Attorney’s Fees: While not a mandatory cost, hiring a bankruptcy attorney in Pasadena is highly recommended. Attorneys charge fees for their services, and the cost can vary depending on your location, the complexity of your case, and the attorney’s experience. Chapter 7 bankruptcy attorney fees can range from a few hundred to several thousand dollars. Legal aid organizations or pro bono services may offer assistance to those who cannot afford an attorney.
4. Credit Report and Miscellaneous Expenses: You may need to obtain a copy of your credit report to ensure you list all your debts accurately. The cost of a credit report varies but is typically around $13 to $20. Additionally, there may be minor miscellaneous expenses associated with your bankruptcy filing, such as postage, photocopying, or notary fees.
5. Means Test: If your income is above the median income for a household of your size in California, you may need to pay for a means test analysis to determine your eligibility for Chapter 7 bankruptcy. This cost varies depending on the provider and can range from approximately $120 to $230.
6. Reaffirmation Agreement Costs: If you wish to keep certain secured debts, such as a car loan or mortgage, and enter into a reaffirmation agreement with the creditor, there may be legal fees associated with this process.
7. Exemption Costs: While not a direct filing cost, you may incur expenses related to protecting your assets through bankruptcy exemptions. Your attorney can help you understand and utilize the appropriate exemptions to protect your property from liquidation.

Since bankruptcy laws and fees can change over time, it’s crucial to verify the most up-to-date information on filing fees and requirements with the United States Bankruptcy Court for the Central District of California or consult with a qualified bankruptcy attorney in Pasadena. Additionally, consider the potential long-term financial benefits of bankruptcy, such as the discharge of eligible debts, when evaluating the overall cost of filing for Chapter 7 bankruptcy.

Cost to File Chapter 11 Bankruptcy in Pasadena, CA

Filing for Chapter 11 bankruptcy in Pasadena, California, is a complex and costly process primarily designed for businesses, but individuals with significant debts may also use it. The costs associated with Chapter 11 bankruptcy can be substantial due to its complexity and the legal and administrative requirements involved.

1. Attorney’s Fees: Chapter 11 bankruptcy is highly complex and typically requires the expertise of an experienced bankruptcy attorney. Attorney fees can vary significantly based on the complexity of the case, the size and nature of the business or individual’s assets, and the attorney’s experience. In complex cases, fees can range from tens of thousands to hundreds of thousands of dollars or more. It is crucial to consult with an attorney to obtain an estimate of the expected costs.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in the United States Bankruptcy Court can be substantial. However, it’s essential to verify the current fee amount on the official website of the United States Bankruptcy Court or by consulting with your attorney, as fees can change over time.
3. U.S. Trustee Fees: In Chapter 11 bankruptcy cases, the U.S. Trustee’s Office assesses quarterly fees based on the debtor’s disbursements. These fees can vary widely depending on the size and activity of the bankruptcy estate. The U.S. Trustee’s office will provide information on the fee structure during the bankruptcy process.
4. Professional Fees: In complex Chapter 11 cases, additional professionals, such as financial advisors, accountants, and appraisers, may need to be hired. Their fees can add significantly to the overall cost of the bankruptcy.
5. Court-Appointed Examiner or Trustee Fees: In certain circumstances, the court may appoint an examiner or trustee to oversee the bankruptcy proceedings. Their fees, if applicable, will be part of the overall costs.
6. Administrative Costs: The administrative costs of operating the business during the bankruptcy process, including rent, utilities, and employee salaries, are ongoing expenses that the debtor is responsible for.
7. Plan Confirmation Costs: Developing and obtaining court approval for a Chapter 11 reorganization plan can be a lengthy and costly process. This includes the cost of drafting the plan and soliciting votes from creditors.
8. Credit Counseling and Debtor Education Courses: Like other bankruptcy chapters, Chapter 11 debtors are required to complete credit counseling and debtor education courses, which typically have associated fees.

Before proceeding with a Chapter 11 bankruptcy filing in Pasadena, CA, it’s essential to consult with an experienced bankruptcy attorney who can assess your situation, provide an estimate of expected costs, and help you understand the complexities and potential outcomes of this form of bankruptcy. Additionally, be prepared for ongoing financial and legal commitments throughout the Chapter 11 process, as it can take several months or even years to complete.

Cost to File Chapter 13 Bankruptcy in Pasadena, CA

Filing for Chapter 13 bankruptcy in Pasadena, California, is often seen as a more affordable option compared to Chapter 11 bankruptcy, especially for individuals with regular income. Chapter 13 bankruptcy is designed to help debtors create a manageable repayment plan to address their debts over a specified period. Here’s a breakdown of the typical costs associated with filing Chapter 13 bankruptcy:

1. Filing Fee: The primary cost associated with filing for Chapter 13 bankruptcy is the filing fee, which is paid to the United States Bankruptcy Court. The filing fee for Chapter 13 bankruptcy is approximately $365. However, it’s essential to verify the current fee amount on the official website of the United States Bankruptcy Court or by consulting with your attorney, as fees can change over time.
2. Attorney’s Fees: While individuals can file for Chapter 13 bankruptcy without an attorney (pro se), it is highly recommended to have legal representation due to the complexity of the process. Attorney fees for Chapter 13 cases can vary depending on your location, the complexity of your case, and the attorney’s experience. Fees typically range from a few thousand to several thousand dollars. Some attorneys may allow you to pay a portion of their fees as part of your Chapter 13 repayment plan.
3. Credit Counseling and Financial Management Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. These courses typically cost between $30 and $60 each. Some agencies may offer fee waivers or reduced fees based on your income.
4. Trustee’s Fee: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan and disburse payments to creditors. The trustee’s fee is calculated as a percentage of the payments made to creditors through the plan. This fee is usually built into your Chapter 13 plan payments, so you don’t have to pay it separately upfront.
5. Plan Payment: Under Chapter 13, you are required to make monthly plan payments to the trustee. The amount of these payments depends on your disposable income and the terms of your approved plan. Your attorney will help you calculate an affordable payment plan based on your financial situation.
6. Credit Report: You may need to obtain a copy of your credit report to ensure you list all your debts accurately. The cost of a credit report varies but is typically around $15 to $20.
7. Miscellaneous Costs: There may be minor miscellaneous expenses associated with your Chapter 13 bankruptcy filing, such as postage, photocopying, or notary fees.

It’s crucial to consult with an experienced bankruptcy attorney in Pasadena to understand the specific costs applicable to your case, obtain an estimate of expected attorney fees, and ensure you navigate the Chapter 13 process correctly. Keep in mind that one of the benefits of Chapter 13 bankruptcy is the opportunity to repay your debts over time through a court-approved plan, which can make it more affordable and manageable than other bankruptcy options. However, it’s important to adhere to the plan and meet your financial obligations to successfully complete your Chapter 13 bankruptcy and achieve debt relief.

Reliable Bankruptcy Attorneys in Pasadena, CA

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

Law Office of Daniela Romero
1015 N Lake Ave #212, Pasadena, CA 91104, United States

Bouldoukian Law Firm, APC
3848 E Colorado Blvd # 21, Pasadena, CA 91107, United States

Bordeaux Law, P.C.
1275 E Green St, Pasadena, CA 91106, United States

MacLean Chung Law Firm – Attorney At Law
225 S Lake Ave STE 300, Pasadena, CA 91101, United States

Plotkin Bankruptcy Group
225 S Lake Ave STE 300, Pasadena, CA 91101, United States

Pasadena, CA Zip Codes We Proudly Serve:

90042, 91001, 91011, 91101, 91103, 91104, 91105, 91106, 91107, 91108

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