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Redlands Bankruptcy Attorney
Redlands California Bankruptcy Attorney Edgar P Lombera with Lomberalaw is a Consumer Debt Protection law firm with Experienced Bankruptcy Attorneys protecting your rights at a very affordable rate.
We offer Chapter 7 And Chapter 13 Bankruptcies for Redlands and surrounding areas.
Lomberalaw Bankruptcies is a debt relief agency assisting people in Redlands California to file for bankruptcy relief under the bankruptcy code. Most persons file for bankruptcy under chapter 7 or chapter 13.
It is ok for a married individual to file Chapter 7 or Chapter 13 bankruptcy without his or her spouse doing the same thing. There are many reasons why one married partner might prefer not to file although the other partner is, such as the desire to maintain one individual’s credit rating or a lack of jointly titled personal or real property between the married couple that would be affected by a bankruptcy filing.
Regardless of the situation, however, certain information must be provided by both partners, even if only one of them is actually filing. The requirements for this will vary from area to area.
First, unless the married partners are legally separated and are maintaining completely separated households, both individuals’ actual, earned gross income is required for each of the 6 months prior to the month in which the bankruptcy petition is being filed for purposes of the Means Test. This will not vary by geographic area as it is required by the Federal Bankrtupcy Code. The Means Test is a mathematical formula that computes an average household monthly income for that 6-month period and determines whether the filer is above or below the median income for their state. If they are above the median, there is a presumption of fraud that must be rebutted for the petition to avoid being dismissed. If they are below the median, the petition should succeed. What may vary is the documentation required to prove this income received: in Redlands, both partners must provide 6 months’ worth of actual pay-advices (pay-stubs) or other documentary proof of income.
Next, what may further vary from area to area is the extent to which the non-spouse’s income is required for the computation of the average household income and expenditures captured on Schedules I and J of the Bankruptcy Petition. Schedule I lists the gross income, withholdings, and, finally, net income for each wage-earning partner in an average month. Schedule J lists the entire household’s average monthly expenditures in various specific areas, such as rent or mortgage payment. The court-appointed trustees who oversee each bankruptcy petition in Redlands area with an eye toward liquidating unexempt assets for the benefit of creditors whose debts will be discharged by the bankruptcy want to see both income streams reflected separately in Schedule I and the household expenses listed in aggregate on Schedule J.
Many of my propsective clients who are married but wishing to file alone, without their spouses, ask me why they must provide this information. Frequently, they are not necessarily on the best of terms with their spouses and are sometimes working to establish a financial jumping-off point for a full separation or divorce from their spouse. It is not always comfortable for them to approach the spouse to obtain this information. Nevertheless, it is required, and those who are in such a position should be aware of this requirement in advance.
Chapter 7 of the Bankruptcy Code governs liquidation bankruptcy, available to individuals and businesses. Upon the filing of a Chapter 7 bankruptcy petition, the bankruptcy court issues an "automatic stay" that stops most collection proceedings against the debtor. A bankruptcy trustee is responsible for gathering the debtor's nonexempt property, if any, liquidating it and distributing the proceeds to the creditors in order of legal preference. This process often leaves some creditors' debts unpaid when there are not enough assets to cover liabilities.
For an individual consumer debtor, these remaining debts are discharged and no longer the responsibility of the debtor; however, certain types of debt are non-dischargeable and survive the bankruptcy, such as alimony or child support. For a business debtor, the liquidated business does not survive the bankruptcy.
A reorganization bankruptcy is more appropriate where there is ongoing income that can be used to pay creditors, at least in part. Reorganizations are governed by several chapters of the Bankruptcy Code. Chapter 11 generally controls reorganizations for individual debtors with high debts or for larger business entities. Chapter 13, on the other hand, generally covers individual consumer debtors with lower debts. Farmers can file for reorganization under Chapter 12 and municipalities under Chapter 9.
Filing for reorganization also generates an automatic stay of most collection activity. The debtor then develops a repayment plan to pay debts over a three- to five-year period through a bankruptcy trustee. At the successful conclusion of the payment plan, if certain conditions are met, remaining dischargeable debt is cancelled. If the debtor fails to make payments under the plan or fails to make alimony, child support or certain tax payments, however, the court may either dismiss the case or convert the reorganization to liquidation.
In addition to bankruptcies filed voluntarily by debtors, creditors have a legal remedy through "involuntary bankruptcy" petitions under Chapters 7 or 11. If either a minimum level of debt is present or a minimum number of creditors, creditors can file a bankruptcy petition against a debtor to ensure that assets are distributed fairly among creditors through the bankruptcy process. Creditors must take care only to file meritorious involuntary petitions, however. Penalties for filing improper involuntary petitions can be steep.
Bankruptcy law can benefit debtors and creditors alike, depending on the circumstances. If you feel that a bankruptcy proceeding may benefit you or your business, you should consult a skilled bankruptcy attorney to help determine your best course of action. Attorney at Law Edgar P. Lombera from San Bernardino California has the knowledge to help his debtor clients get out from under formidable debt.
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Redlands Bankruptcy Attorney Edgar P. Lombera can give you the immediate debt protection you need now plus help you find the best path to a financially stable future. The right choice in legal help today can make a major difference as you begin to build for a better tomorrow.
If you'd like to take the first step toward becoming free of debt, call Lomberalaw Bankruptcies immediately at 909-915-0181 for a free consultation.
Cities Supported: San Bernardino, Redlands, Highland,Yucaipa, Colton, Muscoy, Fontana, Rialto, Banning, Big Bear, Crestline, High Desert, Hesperia, Adelanto, Victorville, Grand Terrace, Rancho Cucamonga, Los Angeles, Upland, Ontario, Pomona, Chino, Montclair, Riverside, Moreno Valley, Corona, Cathedral City, Palm Springs, Palm Desert, Indian Wells, Coachella Valley