As a California Bankruptcy Attorney I see a wide variety of cases come to our law firm seeking legal help and bankruptcy advice. Believe me; today we are seeing people from all walks of life needing to file bankruptcy. Some simply need to eliminate credit card debt and medical bills while other bankruptcy cases are far more complex, involving assets, home equity, businesses and family members.
Chapter 7: A Homeowners Situation
With filing a simple chapter 7 bankruptcy we can eliminate most of our client’s financial problems, or save a home from foreclosure with a chapter 13 bankruptcy plan. But we recently had a client with a very complex case ($180,000 of credit card debt and over $600,000 of home equity) walk in our office with a summons from a credit card company suing her and her husband for $50,000. Interesting enough, they were current on one home, owned another free and clear, and qualified for a chapter 7 with their income. The only problem was we would not be able to protect the home equity by filing bankruptcy chapter 7 and the bankruptcy trustee would fire sale the home to pay off the creditors.
Chapter 11 and Debt Settlement
By filing a chapter 11 more of the home equity could be protected and controlled by the bankruptcy attorney. But ideally, selling the home at a good price and paying some of the debt with cash settlements offers would make the most sense, if you can stave off the creditors with creditor defense. The summons needed to be answered so there was not a $50,000 judgment, and our client needed to by some time to sell one of the properties. The fee for something like this was more than filing bankruptcy chapter 7 but less than filing chapter 11, the benefit was significant. We would be able to answer the summons, contact the creditor and buy some time to negotiate a debt settlement and help our client to avoid filing bankruptcy and liquidating their property.
Handling Complex Cases
Most bankruptcy attorneys probably would not take a case like this being the creditor might not be willing to settle and try and force our clients to file bankruptcy anyway. The need for aggressive representation with creditor defense and debt settlement can work with a bankruptcy attorney who’s willing to go the extra mile for their clients.
The "Threat" of Banktupcy
The threat of filing bankruptcy can be used as a sword with creditors to negotiate a debt settlement offer. Additionally, once cease and desist orders are sent out the credit card companies must stop harassing collection efforts immediately, restoring peace and a sense of normalcy to one’s life. As a bankruptcy attorney I believe it’s critical for a person considering bankruptcy to consult more than one bankruptcy attorney if they have a complicated case.
At our law office we stress the importance of treating our clients like family, and their assets like our own. Debt Settlement and creditor defense can help people save their assets when filing bankruptcy or avoid bankruptcy altogether. If you have a difficult financial situation and need to consider filing bankruptcy, know your options. The bankruptcy attorneys at the Law Offices of Zhou & Chini offer aggressive representation and will work closely with you to explore all your options. If you need to file bankruptcy or want to try and avoid bankruptcy consult a bankruptcy attorney who offers both. Call our law offices today at (800) 972-9600 and schedule a free consultation.