If you’re considering filing bankruptcy in Visalia, 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 Visalia, California, or anywhere else in the United States, is determined by federal bankruptcy laws rather than specific local regulations. Bankruptcy is a legal process that provides individuals and businesses with financial relief when they are unable to pay their debts. There are different chapters of bankruptcy, with Chapter 7 and Chapter 13 being the most common for individuals.

Here, we’ll explain the general qualifications for both Chapter 7 and Chapter 13 bankruptcy in Visalia, CA.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy is often referred to as “liquidation” bankruptcy. It involves the sale of non-exempt assets to pay off creditors and results in the discharge of most unsecured debts. To qualify for Chapter 7 bankruptcy in Visalia or anywhere in the United States, you need to meet certain criteria:

1. Means Test: The most critical eligibility requirement for Chapter 7 bankruptcy is passing the means test. This test compares your income to the median income in California for a household of your size. If your income is below the median, you generally qualify for Chapter 7. If it’s above the median, you may still qualify based on your disposable income after deducting allowable expenses.
2. No Prior Discharge: You cannot have received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years.
3. Credit Counseling: Before filing for bankruptcy, you must complete a credit counseling course from an approved agency. This certificate is typically valid for 180 days.
4. Debt Eligibility: Not all debts can be discharged in Chapter 7. Certain types of debts, such as child support, alimony, student loans (in most cases), and certain tax debts, are typically not dischargeable.
5. Financial Management Course: After filing for Chapter 7 bankruptcy, you must complete a financial management course.
6. Honesty and Cooperation: You must provide accurate and complete financial information to the court and cooperate with the bankruptcy trustee throughout the process.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy is often referred to as “reorganization” bankruptcy. It allows individuals with a regular income to create a plan to repay all or part of their debts over a three-to-five-year period. To qualify for Chapter 13 bankruptcy in Visalia, CA, you must meet these criteria:

1. Regular Income: You must have a stable source of income to create a repayment plan that meets the court’s approval.
2. Debt Limits: There are debt limits for Chapter 13 bankruptcy. These limits are subject to change with inflation adjustments.
3. Priority Debts: You must stay current on certain debts, such as child support, alimony, and tax obligations, during the repayment plan.
4. Credit Counseling: Like with Chapter 7, you must complete a credit counseling course before filing for Chapter 13 bankruptcy.
5. Plan Approval: Your repayment plan must be feasible and acceptable to the court, ensuring that you can make the required payments over the specified period.
6. Honesty and Cooperation: Similar to Chapter 7, you must provide honest and complete financial information and cooperate with the bankruptcy trustee.

Keep in mind that bankruptcy should be considered as a last resort, and there may be other debt relief options available, such as debt consolidation or negotiation with creditors. Bankruptcy has long-term consequences on your credit and financial life, so it’s essential to make an informed decision based on your unique circumstances.

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

Whether you need a lawyer to file for bankruptcy in Visalia, California, or anywhere else, depends on your specific circumstances, the complexity of your case, and your comfort level with legal processes. While it is possible to file for bankruptcy pro se (without an attorney), there are several compelling reasons why hiring an experienced bankruptcy attorney in Visalia can be highly beneficial:

1. Complexity of Bankruptcy Laws: Bankruptcy law is intricate and can be challenging to navigate. Attorneys have a deep understanding of the federal bankruptcy code and how it applies to your particular situation. They can help you determine which chapter of bankruptcy is most appropriate for your needs (Chapter 7 or Chapter 13) and ensure that you meet all eligibility requirements.
2. Legal Expertise: Bankruptcy attorneys are well-versed in the legal procedures and requirements associated with bankruptcy filings. They can guide you through the entire process, ensuring that you complete all necessary paperwork accurately and submit it on time. This reduces the risk of errors that could lead to your case being dismissed or delayed.
3. Protection from Creditors: Once you file for bankruptcy, an automatic stay goes into effect, preventing creditors from taking further collection actions against you. An attorney can communicate with creditors on your behalf, informing them of the bankruptcy filing and stopping harassing calls and collection efforts.
4. Asset Protection: Bankruptcy attorneys can help you understand the exemptions available in California and how to maximize your ability to keep your essential assets, such as your home, car, and personal belongings, during the bankruptcy process.
5. Negotiations with Creditors: In some cases, an attorney can negotiate with creditors outside of bankruptcy to create more favorable repayment terms or settlements. This can be particularly helpful if you’re considering Chapter 13 bankruptcy but have some disposable income to repay a portion of your debts.
6. Preventing Mistakes: Mistakes or omissions in your bankruptcy paperwork can have significant consequences. Attorneys are trained to identify potential issues and ensure that your documents are complete and accurate, reducing the likelihood of complications in your case.
7. Court Representation: If your bankruptcy case requires a court appearance or if creditors object to your bankruptcy filing, an attorney can represent you in court, advocating for your interests and ensuring that your rights are protected.
8. Financial Guidance: Bankruptcy attorneys can provide valuable financial advice and help you create a budget and financial plan to rebuild your credit and financial stability after bankruptcy.
9. Peace of Mind: Knowing that you have an experienced professional handling your bankruptcy case can provide peace of mind during a challenging and stressful time. You can focus on rebuilding your financial future while your attorney manages the legal aspects of your case.
10. Maximizing Benefits: An attorney can help you explore all available options for debt relief, including bankruptcy alternatives, and advise you on the best course of action based on your specific circumstances.

Hiring a bankruptcy attorney in Visalia, CA, or any other location can greatly improve your chances of a successful bankruptcy filing. They can provide expertise, protection, and peace of mind during a challenging financial period, helping you achieve a fresh financial start and a brighter future.

Cost to File Chapter 7 Bankruptcy in Visalia, CA

The cost to file Chapter 7 bankruptcy in Visalia, California, consists of several fees and expenses, including court filing fees, attorney fees, and credit counseling fees.

1. Court Filing Fees: The standard court filing fee for Chapter 7 bankruptcy in the Central District of California, which includes Visalia, is subject to change, so it’s essential to check the current fee on the U.S. Bankruptcy Court’s website or consult with your bankruptcy attorney.
2. Credit Counseling Fees: Before filing for bankruptcy, you are required to complete credit counseling from an approved agency. The cost for this counseling typically ranges from $28 to $60, although there may be options for fee waivers or reduced fees based on your income. Be sure to inquire about these options when selecting a credit counseling agency.
3. Attorney Fees: While it is possible to file for Chapter 7 bankruptcy without an attorney (pro se), many individuals choose to hire a bankruptcy attorney to guide them through the process. Attorney fees can vary widely based on the complexity of your case, the attorney’s experience, and your location. In Visalia, California, attorney fees for Chapter 7 bankruptcy can range from $1,200 to $2,800 or more. Some attorneys offer payment plans to make their services more affordable.
4. Credit Report and Miscellaneous Costs: It’s a good practice to obtain a copy of your credit report before filing for bankruptcy to ensure you have a complete list of your creditors. Credit reports can be obtained for free once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. However, if you need additional copies or reports, there may be associated costs.
5. Mandatory Debtor Education Course: After filing for bankruptcy, you are required to complete a debtor education course. The cost of this course varies but is typically in the range of $28 to $58.
6. Miscellaneous Costs: Depending on your specific circumstances, there may be additional costs associated with your bankruptcy, such as transportation expenses to attend court hearings or notary fees for certain documents.

When considering the cost of Chapter 7 bankruptcy, it’s crucial to weigh these expenses against the potential benefits. Chapter 7 bankruptcy can provide significant debt relief and a fresh financial start, potentially saving you much more in the long run than the initial filing costs. Additionally, many bankruptcy attorneys offer free initial consultations, so you can discuss your situation with an attorney to get a better understanding of the potential costs and benefits before making a decision.

Cost to File Chapter 11 Bankruptcy in Visalia, CA

The cost to file Chapter 11 bankruptcy in Visalia, California, can be substantial, as Chapter 11 bankruptcy is primarily designed for businesses and individuals with complex financial situations. The fees and expenses associated with Chapter 11 bankruptcy can vary widely based on the size and complexity of the case. Here’s a breakdown of the key costs and considerations:

1. Filing Fee: The standard filing fee for a Chapter 11 bankruptcy case is $1,905. However, this fee can change over time, so it’s essential to verify the current fee on the U.S. Bankruptcy Court’s website or through legal counsel.
2. Attorney Fees: Chapter 11 cases are intricate and typically require legal representation from experienced bankruptcy attorneys. Attorney fees in Chapter 11 cases are not fixed and can vary significantly based on factors such as the complexity of your financial situation, the size of your business, the number of creditors, and the duration of the case. In complex cases, attorney fees can range from tens of thousands to hundreds of thousands of dollars or more.
3. Filing of Required Documents: Chapter 11 cases involve the filing of numerous documents, including financial reports, disclosure statements, and reorganization plans. The preparation and filing of these documents can incur additional costs, especially if you need assistance from financial professionals, such as accountants or appraisers.
4. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s office assesses quarterly fees based on the debtor’s disbursements or quarterly disbursements. These fees can vary based on the amount of funds disbursed during the case.
5. Creditors’ Committee Fees: In some Chapter 11 cases, a creditors’ committee may be formed to represent the interests of creditors. The debtor typically bears the expenses associated with the creditors’ committee, including legal and financial advisory fees.
6. Professional Fees: If you hire professionals such as financial advisors, appraisers, or consultants to assist with your Chapter 11 case, their fees will be an additional expense.
7. Operational Costs: During the Chapter 11 process, you must continue to operate your business (if applicable) and cover ongoing operational costs. This includes expenses like rent, utilities, employee salaries, and inventory costs.
8. Plan Confirmation and Confirmation Hearing Costs: Once a reorganization plan is proposed, there may be additional legal and administrative expenses associated with obtaining court approval through a confirmation hearing.

It’s crucial to note that Chapter 11 bankruptcy is a highly complex and costly process, primarily designed for businesses or individuals with substantial assets or income. It provides an opportunity for debtors to restructure their debts, develop a repayment plan, and continue their operations. However, the costs involved can be significant, and successful Chapter 11 cases often require the guidance of experienced bankruptcy attorneys and financial professionals.

Cost to File Chapter 13 Bankruptcy in Visalia, CA

The cost to file Chapter 13 bankruptcy in Visalia, California, includes several fees and expenses, and it’s essential to be aware of these costs when considering this form of bankruptcy. Chapter 13 bankruptcy is often called a “wage earner’s plan” because it allows individuals with regular income to create a structured repayment plan to pay off their debts over three to five years. Here’s a breakdown of the primary costs associated with filing Chapter 13 bankruptcy:

1. Filing Fee: The filing fee for Chapter 13 bankruptcy in the Central District of California, which includes Visalia, is $340. This fee covers the administrative costs of processing your bankruptcy case. However, please note that filing fees can change over time, so it’s essential to verify the current fee on the U.S. Bankruptcy Court’s website or through legal counsel.
2. Attorney Fees: While individuals can file for Chapter 13 bankruptcy pro se (without an attorney), many choose to hire a bankruptcy attorney due to the complexities of the process. Attorney fees for Chapter 13 cases can vary based on factors such as the complexity of your financial situation and the attorney’s experience. Typically, attorney fees for Chapter 13 bankruptcy in Visalia, CA, range from $3,250 to $5,550 or more. Some attorneys offer payment plans to make their services more affordable.
3. Credit Counseling and Debtor Education Courses: Before filing for Chapter 13 bankruptcy, you must complete both a credit counseling course and a debtor education course from approved agencies. These courses typically cost between $30 and $68 each. Fee waivers or reduced fees may be available based on your income.
4. Chapter 13 Trustee Fees: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan. The trustee charges a fee for administering your case, which is typically a percentage of the payments you make to creditors through the plan.
5. Credit Report and Miscellaneous Costs: You may need to obtain a copy of your credit report before filing for bankruptcy to ensure you have a complete list of your creditors. While you can obtain one free credit report annually from each of the three major credit bureaus (Equifax, Experian, and TransUnion), additional copies may come with associated costs.
6. Plan Confirmation and Plan Modification Costs: There may be legal fees associated with preparing and confirming your Chapter 13 repayment plan. If you need to modify your plan during the repayment period, additional legal expenses may apply.

It’s important to consult with a qualified bankruptcy attorney in Visalia or a bankruptcy petition preparer to ensure that you understand the full scope of costs associated with your Chapter 13 case. Additionally, if you cannot afford to pay the filing fee upfront, you may be eligible for a fee waiver or the option to pay the fee in installments, subject to court approval.

Reliable Bankruptcy Attorneys in Visalia, CA

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

Law Offices of Mark A. Zimmerman
204 N Floral St Ste E, Visalia, CA 93277, United States

Law Offices of Stephen Labiak
525 W Main St #142, Visalia, CA 93291, United States

Scott Lyons Attorney at Law
1010 W Main St, Visalia, CA 93291, United States

Daniel E. Bern, Attorney at Law
810 W Main St Suite A, Visalia, CA 93291, United States

Family Law Facilitator
221 S Mooney Blvd Rm 203, Visalia, CA 93291, United States

Visalia, CA Zip Codes We Proudly Serve:

93277, 93291, 93292

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