Los Angeles Bankruptcy Lawyers - FAQs

If I file for bankruptcy, will it ruin my credit for 10 years?

If you need to file for bankruptcy, your credit is most likely already damaged. However, filing for bankruptcy does not mean that your credit will be ruined for 10 years. Instead, bankruptcy wipes your credit slate clean, and gives you a chance to start over. Although you may have difficulties getting new credit shortly after bankruptcy, if you are diligent about paying your bills and rebuilding your credit, in time your credit score will likely be higher than it was before you filed for bankruptcy.

Can I file for bankruptcy even if I still have a job?

Absolutely. In fact, if you want to file for Chapter 13 bankruptcy, having a steady source of income is a requirement. Just because you have a job, it doesn't mean that you don't need the financial protection of bankruptcy. Talk to one of the attorneys at our premier Los Angeles County Bankruptcy Law Firm today and we'll discuss how bankruptcy can help your particular situation.

If I file for bankruptcy, does my spouse have to file for bankruptcy too?

No. Your spouse has no obligation to file for bankruptcy, even if you need to do so. However, he or she will be financially responsible for any accounts held jointly in both of your names. Because bankruptcy can be complex when it involves shared assets, you should speak to a reputable Los Angeles County Bankruptcy Lawyer about your particular situation.

Can I be fired from my job for filing for bankruptcy?

Absolutely not! It is against the law for your employer to fire you because you've filed for bankruptcy. However, there is no law preventing your employer for firing you due to an unrelated reason, even if you have filed for bankruptcy recently. If your employer does fire you soon after discovering that you are filing for bankruptcy, you may have a legal case. Talk to one of our Los Angeles County Bankruptcy Law experts at our firm, and we'll evaluate your case right away.

If I file for bankruptcy, will I have to pay taxes on the discharged debt?

No. You don't owe taxes on debts discharged through bankruptcy. However, you may owe taxes on debts which have been forgiven outside of bankruptcy, such as with a short sale or deed in lieu. If you are concerned about taxes and bankruptcy law, contact us today - we can provide solid legal advice to assist you with making a decision as to what makes the best financial sense in your situation.

I need to file for bankruptcy, but I'd like to keep making payments on my (car, house, etc.). Can I still file for bankruptcy and keep these items?

In many cases, yes. As long as you are able to make the payments, you can either reaffirm the debt in a Chapter 7 bankruptcy, or you can file for Chapter 13 bankruptcy and ensure that they are part of the repayment plan that you establish. Which option you choose depends a lot on your particular situation - we offer personalized advice in a free initial case evaluation that can help you make the right decision when it comes to your bankruptcy case.

My bank is threatening to foreclose on my home. Can filing for bankruptcy really prevent foreclosure?

Yes - filing for bankruptcy will stop the foreclosure process, for a while. However, if you cannot make regular payments on your home, simply filing for bankruptcy may not help you. Talk to one of our trained Los Angeles County Bankruptcy Attorneys about your circumstances and we'll help you to decide if bankruptcy will really benefit you in this situation.

Can I file for bankruptcy even if I've had a case dismissed in the last year?

Yes - but there are special circumstances involved. You will likely not have the benefit of the automatic stay, and there may be other difficulties with your case as well. Even if you've had a bankruptcy case dismissed recently, contact our office and discuss your situation. We may be able to assist you with filing for bankruptcy and still retaining some financial relief from your creditors.

Do I have to have legal representation in order to file for bankruptcy protection?

No, you don't. It's not a requirement to have an attorney represent you in a bankruptcy case. However, because of the amount of paperwork involved, as well as the legal complexities of many bankruptcy cases, coupled with the new laws that have gone into effect in the past few years, filing for bankruptcy on your own may prove difficult. There are strict deadlines that must be met and requirements that must be fulfilled in order for your case to be approved. Our reputable, professional Los Angeles County Bankruptcy Law Firm can help you to make sure that your case is accepted by the court and that you know what to expect from start to finish.