Bankruptcies | Chapter 7 | Chapter 13

With the tough economic conditions we all have faced in the last few years, almost everybody's financial lives have been affected.

Bankruptcy is never anyone's first choice, but sometimes it is necessary in order to "stop the financial bleeding so you can get back on your feet. Bankruptcy can save your home if it is being foreclosed on, resulting in a more affordable payment plan. If your car is being repossessed, it could save it. If you have medical bills they could be drastically reduced in a bankruptcy. Best of all, it allows you to eliminate most -- if not all -- of your debt so you can start debt-free.

In exchange for being debt-free, bankruptcy is a real hit on your credit report. Often it will affect your ability to get credit for a number of years. But sometimes a bankruptcy is an unavoidable financial decision that has to be made.

The bankruptcy attorneys at Lemle Law are experienced in the bankruptcy process. We are here to explain your choices and to guide you through the legal process should you decide that a bankruptcy is what you have to do.

Contact bankruptcy attorney Robert Lemle for a free, no-obligation consultation.

Chapter 7

Also known as a Liquidation Proceeding, Chapter 7 allows you to get out from under the weight of your debt in order to "start over." All of your non-exempt assets are sold. That money goes pay off your debtors -- sometimes pennies on the dollar, depending on the non-exempt assets you hold. In return you receive a discharge of all debts that are permitted to be discharged in about four months.

If you have no assets, the process is faster. Exempt assets are properties you are allowed to keep. What these are depends on the value of the assets and what exemptions apply specifically to you. Both California and the federal government have a set of exemptions. Los Angeles bankruptcy attorney Robert Lemle will be able to guide you to ensure that you get every exemption you are eligible for.

Chapter 13

Chapter 13, also called the Reorganization Proceeding, is for people who have non-exempt property that they don't want sold. If you have enough income, you may be able to file Chapter 13 which allows you to pay off your debt according to a three to five year payment plan approved by the court.