If you’re considering filing bankruptcy in Torrance, 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 legal process that allows individuals and businesses to seek relief from overwhelming debt. In Torrance, CA, as in the rest of the United States, bankruptcy laws are governed by federal statutes but can be influenced by state-specific regulations. To determine whether you are qualified to file for bankruptcy in Torrance, it’s essential to understand the eligibility criteria, types of bankruptcy available, and the means test that may apply.

1. Types of Bankruptcy: In the United States, there are several types of bankruptcy chapters, but the most common for individuals are Chapter 7 and Chapter 13.
   • Chapter 7: This is often referred to as a “liquidation” bankruptcy. It involves the sale of non-exempt assets to pay off creditors, and most remaining unsecured debts are discharged. To qualify for Chapter 7, you need to meet certain income and asset criteria.
   • Chapter 13: This is a “reorganization” bankruptcy. It allows individuals to create a three- to five-year repayment plan to catch up on overdue payments and satisfy a portion of their debts. Chapter 13 is typically for individuals with a steady income who want to protect their assets from liquidation.
2. Eligibility Criteria: To determine whether you are qualified for bankruptcy in Torrance, you’ll need to meet specific criteria, including:
   • Residency: You must have lived in California for at least 180 days before filing your bankruptcy petition.
   • Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing your bankruptcy case.
   • Bankruptcy History: If you’ve had a bankruptcy case dismissed in the last 180 days, you may face restrictions on refiling.
   • Income and Means Test: For Chapter 7 bankruptcy, you must pass the “means test.” This test compares your income to the median income for your household size in California. If your income is below the median, you are likely eligible for Chapter 7. If it’s above, you may still qualify based on your disposable income after certain expenses are deducted.
   • Ability to Make Payments: For Chapter 13 bankruptcy, you need to demonstrate that you have enough disposable income to fund a repayment plan.
3. Exemptions: California has its set of exemptions that determine what property you can keep when filing for bankruptcy. These exemptions allow you to protect certain assets like your home, car, and personal property up to specific dollar amounts. It’s essential to understand these exemptions as they vary from federal exemptions and can affect your eligibility for Chapter 7 and the protection of your assets.
4. Consultation with a Bankruptcy Attorney: While it’s possible to file for bankruptcy without an attorney, seeking legal counsel is highly recommended. An experienced bankruptcy attorney in Torrance can assess your financial situation, guide you through the process, and help you determine which chapter of bankruptcy is suitable for your needs. They can also ensure that you meet all the eligibility requirements and navigate any potential obstacles.

Determining your eligibility for bankruptcy in Torrance, CA, involves a careful assessment of your financial situation, income, assets, and your desired outcome. It’s essential to consult with a qualified bankruptcy attorney to help you navigate the complex legal requirements and ensure that you make informed decisions about your financial future. Bankruptcy can offer much-needed relief to those overwhelmed by debt, but it’s crucial to approach the process with the right guidance and understanding of the relevant laws and regulations.

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

Filing for bankruptcy in Torrance, California, is legally possible without hiring an attorney, but whether you should proceed without legal counsel depends on your individual circumstances, the type of bankruptcy you’re considering, and your comfort level with navigating complex legal processes.

Here are some key factors to consider when deciding whether to hire a lawyer for bankruptcy in Torrance:

1. Complexity of Your Case: If your financial situation is relatively straightforward, you may be able to file for bankruptcy pro se (without an attorney). For example, if you have minimal assets, low income, and no complex legal issues, filing on your own might be feasible. However, many bankruptcy cases involve intricate financial details, creditor disputes, or asset protection concerns, which are best handled by an experienced attorney.
2. Chapter of Bankruptcy: The type of bankruptcy you intend to file plays a significant role in determining whether you need a lawyer. Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, is generally more straightforward than Chapter 13, which requires creating a repayment plan. If you’re considering Chapter 13, an attorney can be particularly valuable in crafting a feasible repayment plan and addressing creditor objections.
3. Understanding of Bankruptcy Laws: Bankruptcy law is complex and involves federal and state-specific regulations. While there are resources available for individuals to educate themselves, such as bankruptcy self-help books and online forms, an attorney has the expertise to navigate this intricate legal landscape effectively. They can ensure that you adhere to all required processes and deadlines.
4. Protection of Your Assets: A qualified bankruptcy attorney can help you maximize the use of exemptions to protect your assets. California has specific bankruptcy exemptions that differ from federal exemptions, and an attorney can help you understand how to use these exemptions to safeguard your property while eliminating or reducing your debts.
5. Creditors and Creditor Disputes: If you have disputes with creditors or anticipate challenges from them during the bankruptcy process, an attorney can represent your interests, negotiate with creditors, and handle any legal actions that may arise. They can also help you address issues related to fraud or preference claims.
6. Complex Income and Expenses: If your income and expenses are more complicated due to factors like self-employment, rental properties, or business ownership, an attorney can assist in accurately assessing your disposable income for the means test and creating a Chapter 13 repayment plan.
7. Peace of Mind: Bankruptcy can be a stressful and emotionally challenging process. Having an attorney by your side can provide peace of mind, knowing that you have a professional advocating for your interests and guiding you through the steps.
8. Minimizing Mistakes: Filing for bankruptcy involves significant paperwork and adherence to strict legal procedures. Mistakes can lead to delays, dismissals, or even the loss of assets. An attorney can help you avoid these pitfalls and ensure that your case proceeds smoothly.

While it is possible to file for bankruptcy in Torrance, CA, without an attorney, it’s often advisable to seek legal counsel, especially if your case is complex or involves significant assets or debts. An experienced bankruptcy attorney can provide valuable guidance, protect your rights, and increase your chances of a successful bankruptcy discharge or repayment plan. Before making a decision, consider consulting with an attorney to assess your unique circumstances and determine the best approach for your financial situation.

Cost to File Chapter 7 Bankruptcy in Torrance, CA

The cost to file Chapter 7 bankruptcy in Torrance, California, includes various fees and expenses that you need to consider when seeking debt relief through bankruptcy. These costs can be broken down into several key components:

1. Filing Fee: The primary cost associated with filing Chapter 7 bankruptcy is the filing fee. However, please note that these fees can change over time, so it’s essential to check the most up-to-date fee schedule with the U.S. Bankruptcy Court for the Central District of California or consult with an attorney.
2. Credit Counseling and Financial Management Courses: Before filing for Chapter 7 bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. These courses typically cost around $30 to $65 each, though fees may vary depending on the service provider.
3. Attorney’s Fees: While you are not legally required to hire an attorney to file for Chapter 7 bankruptcy, many individuals choose to do so for legal guidance and to navigate the complex process more effectively. Attorney fees can vary widely, depending on the complexity of your case and the attorney’s experience. On average, attorney fees for Chapter 7 bankruptcy may range from $1,320 to $2,680 or more.
4. Mandatory Credit Report: You’ll need to obtain a copy of your credit report before filing for bankruptcy to ensure that all your debts are included in your bankruptcy petition. This typically costs around $36.
5. Optional Services: Depending on your circumstances, you may need or choose to pay for additional services, such as reaffirmation agreements (if you want to keep certain secured debts), notary fees, and mailing costs for notices.
6. Exemption for Low-Income Debtors: In some cases, low-income debtors may be eligible for a waiver or installment plan for the bankruptcy filing fee. To determine if you qualify, you should consult with the U.S. Bankruptcy Court or a qualified attorney.
7. Means Test: Before filing for Chapter 7 bankruptcy, you may need to pass the means test, which assesses your income and expenses to determine your eligibility. While this is not a direct cost, the results of the means test can impact your ability to file for Chapter 7 or may push you toward Chapter 13 bankruptcy, which has different costs associated with it.

Before proceeding with a Chapter 7 bankruptcy filing, it is advisable to consult with a qualified bankruptcy attorney who can provide a more accurate estimate of the costs involved in your particular case, offer guidance on fee waivers or installment plans if applicable, and ensure that you meet all the necessary requirements for a successful bankruptcy petition. An attorney can also help you make informed decisions about whether bankruptcy is the right option for your financial situation.

Cost to File Chapter 11 Bankruptcy in Torrance, CA

Filing for Chapter 11 bankruptcy in Torrance, California, is a complex and expensive process primarily designed for businesses, including corporations and partnerships, as well as individuals with substantial assets and debts. The cost of filing for Chapter 11 bankruptcy can be substantial and varies depending on the specifics of your case. Here are some of the key factors that can impact the cost:

1. Attorney Fees: The legal fees associated with Chapter 11 bankruptcy can be significant. Attorneys who specialize in bankruptcy law typically charge hourly rates or flat fees, which can vary widely based on their experience and the complexity of your case. In a Chapter 11 bankruptcy, where negotiations and reorganization plans are common, legal fees can range from tens of thousands to hundreds of thousands of dollars.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case are subject to change. You should check the most up-to-date fee schedule with the U.S. Bankruptcy Court for the Central District of California or consult with an attorney.
3. Creditors’ Committee Fees: In some Chapter 11 cases, a committee of unsecured creditors may be appointed. The expenses of this committee, including legal and financial advisor fees, can be paid from the bankruptcy estate. These costs can add to the overall expenses of the bankruptcy process.
4. Professional Fees: Chapter 11 cases often require the involvement of various professionals, such as financial advisors, accountants, appraisers, and turnaround consultants. Their fees can be substantial and depend on the complexity and size of the debtor’s estate.
5. Fees for Reporting and Compliance: Debtors in Chapter 11 are required to provide regular financial reports and comply with court orders and requirements. These ongoing reporting and compliance costs can accumulate over the course of the bankruptcy.
6. U.S. Trustee Fees: The U.S. Trustee’s office may assess fees for overseeing Chapter 11 cases, which can also contribute to the overall expenses.
7. Court Costs and Miscellaneous Expenses: There are various administrative costs associated with bankruptcy proceedings, including court filing and service fees. Additionally, there may be miscellaneous expenses related to mailing, publication, and other administrative tasks.
8. Plan Confirmation Expenses: If you are successful in proposing a reorganization plan and it requires approval from creditors and the court, there may be costs associated with soliciting votes and presenting the plan for confirmation.

Given the complexity and high costs associated with Chapter 11 bankruptcy, it is strongly advisable to consult with an experienced bankruptcy attorney in Torrance, CA, who can assess your specific situation, provide a more accurate estimate of the costs involved, and guide you through the process effectively. An attorney can help you develop a viable reorganization plan and navigate the intricate legal and financial aspects of Chapter 11 bankruptcy.

Cost to File Chapter 13 Bankruptcy in Torrance, CA

Filing for Chapter 13 bankruptcy in Torrance, California, involves specific costs and fees associated with the process. Chapter 13 bankruptcy is often chosen by individuals who have a regular income and wish to create a structured repayment plan to address their debts. Here’s a breakdown of the key costs involved:

1. Filing Fee: The filing fee for a Chapter 13 bankruptcy case is $382. However, please note that bankruptcy fees are subject to change, and it’s essential to verify the most up-to-date fee schedule with the U.S. Bankruptcy Court for the Central District of California or consult with an attorney.
2. Attorney Fees: While it is possible to file for Chapter 13 bankruptcy without an attorney (pro se), many individuals choose to hire an attorney to navigate the complex legal requirements and maximize the chances of a successful outcome. Attorney fees for Chapter 13 bankruptcy can vary widely based on the complexity of your case, your location in Torrance, and the attorney’s experience. On average, attorney fees for a Chapter 13 case may range from $2,230 to $4,760 or more.
3. Credit Counseling and Financial Management Courses: Prior to filing for Chapter 13 bankruptcy, you are required to complete a credit counseling course from an approved agency. Additionally, you must complete a financial management course during your bankruptcy case. These courses typically cost around $28 to $57 each.
4. Bankruptcy Trustee’s Fees: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan. The trustee receives a fee, which is typically a percentage of the payments made through your plan. This fee is included in your monthly plan payments and does not require an upfront payment.
5. Court Costs and Miscellaneous Expenses: There are various administrative costs associated with bankruptcy proceedings, including court filing fees, mailing, and publication expenses. These costs can add up, but they are relatively modest compared to the other fees involved.
6. Credit Report: Before filing for Chapter 13 bankruptcy, you may need to obtain a copy of your credit report to ensure that all your debts are included in your repayment plan. This typically costs around $35.
7. Optional Services: Depending on your specific circumstances, you may need or choose to pay for additional services, such as reaffirmation agreements (if you wish to keep certain secured debts), notary fees, and mailing costs for notices.

It’s important to remember that the costs associated with Chapter 13 bankruptcy can vary based on individual factors, such as the complexity of your case, the extent of your debts, and the need for legal representation. Before proceeding with a Chapter 13 bankruptcy filing, it is advisable to consult with a qualified bankruptcy attorney in Torrance, CA, who can assess your unique circumstances, provide a more accurate estimate of the costs involved, and guide you through the process effectively.

Reliable Bankruptcy Attorneys in Torrance, CA

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

Borowitz & Clark, LLP
3868 W Carson St #332, Torrance, CA 90503, United States

Sam Benevento
3620 Pacific Coast Hwy #100, Torrance, CA 90505, United States

Law Offices of Navid Kohan
21150 Hawthorne Blvd # 203, Torrance, CA 90503, United States

Cero Balance, Inc.
1321 Post Ave #201, Torrance, CA 90501, United States

Christie Cronenweth Law Office
25202 Crenshaw Blvd UNIT 207, Torrance, CA 90505, United States

Torrance, CA Zip Codes We Proudly Serve:

90247, 90248, 90277, 90278, 90501, 90503, 90504, 90505, 90717

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