Bankruptcy in Palm Springs 
 

Thank you for visiting the Palm Springs Bankruptcy Law Offices of “insert attorney name”. 

If you are thinking about filing for bankruptcy, let our experienced attorneys help you make the right choice.  Please take a moment and visit our “Why hire us” page to see what makes us different from the other Bankruptcy attorneys in and around Palm Springs. 

Bankruptcy Overview

  • Bankruptcy provides a fresh start.
  • Provides relief to millions of people each year in the United States.
  • Once you file for bankruptcy, your creditors are prohibited from contacting you.
  • Bankruptcy remains on your credit report for 10 years.
 

Consider bankruptcy when….

  • Collection agencies are calling you day and night.
  • When creditors are sending you Past Due letters on a daily basis.
  • Your paycheck doesn’t cover your debts.
  • You are being sued.
 

United States Bankruptcy Court

  • In Palm Springs, bankruptcy must be filed in the Division Bankruptcy court.
  • Location:
  •  
    • United States Bankruptcy Court
  •  

      Central District of California

  •  

      3420 Twelfth Street

  •  

      Riverside, CA 92501

  •  

      Telephone:  951-774-1000

  •  

      Hours:  Monday thru Friday - 9:00 a.m. to 4:00 p.m. 

California Bankruptcy Laws

  • Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
  • Added the Means Test to qualify for bankruptcy.
 
  • California Exemptions
  • Allows you to protect your home, vehicle, personal property.
  • Home exemptions vary from $75,000 to $150,000 – depending on age, income, etc.
  • Vehicle exemptions are up to $2,300.
  • Other exemptions include social security deposits, household furnishings, and clothing.
  • Our attorneys will explain these to you.
 

 

Chapter 7

  • Unsecured debts eliminated:
  • Credit cards
  • Medical bills
  • Personal loans
  • Provides an automatic stay which stops creditors from sending you harassing letters, making phone calls.
  • You can only file for Chapter 7 bankruptcy protection once in 8 years.
  • Filing Fee - $299.
  • A Chapter 7 discharge is received about 2 months after the first meeting with your creditors.
 

Required for Chapter 7 Protection

  • Means Test
  • Must qualify before you can receive Chapter 7 bankruptcy protection.
  • Compares your income to the median annual income (for your family size) in California:
  •  
    •  
      • 1 person  $49,182
      • 2 persons  $65,097
      • 3 persons  $70,684
      • 4 persons  $79,971
 

Chapter 13

  • An alternative to Chapter 7 – no liquidation of assets involved – keep your property.
  • Hit by a short-term financial problem.
  • Must have steady income to make monthly payments.
  • Must have disposable income at the end of the month to make payments.
  • Must fall between limits of acceptable debt:
  •  
    • $1 million for secured debt
    • $337,000 for unsecured debt
  • Immediately imposes an automatic stay for your protection.
  • Gives you between 3 and 5 years to make payments and catch up.
  • Protects you against foreclosure or repossession.
  • Must complete a Credit Counseling Briefing.
  • Must complete a Debtor Education Course.
  • Court will notify your creditors and assign a trustee to your case.
  • Within 15 days of filing, the court will send creditors a Notice of Commencement of Case.
  • If you make all your payments on time, any unsecured debt still unpaid at the end of the plan will be discharged.
 

Requirements for Chapter 7 and Chapter 13 Protection

  • Credit Counseling Briefing
  • This is mandatory - must complete this course before you can file.
  • The cost is about $50.
  • When completed, a certificate will be given to you.
  • Can be completed in person, over the phone or on the Internet.
  • Includes:
  •  
    • A review of your finances
    • Alternatives to bankruptcy
    • Creation of a budget
  • Approved Location – In person:
  •  
    • Springboard Nonprofit Consumer Credit Management, Inc.
  •  

      1001 South Palm Canyon, Suite 103

  •  

      Palm Springs, CA 92262

  •  

      888-425-3453 

  • Debtor Education Course
  • This is mandatory – takes place after filing and before discharge is complete.
  • Course costs between $50 and $100.
  • A certificate of completion will be given to you.
  • Courses can be taken in person, by phone or on the Internet.
  • Course includes:
  •  
    • How to create a budget
    • How to manage finances
    • Using credit wisely
  • Approved Location – In person:
  •  
    • Springboard Nonprofit Consumer Credit Management, Inc.
  •  

      1001 South Palm Canyon, Suite 103

  •  

      Palm Springs, CA 92262

  •  

      888-425-3453 

Chapter 11

  • Filed mostly by businesses, corporations, partnerships.
  • Plan of Reorganization.
  • The debtor is known as a debtor in possession:
  •  
    • Keeps all assets, including the business.
    • You, as the debtor, will become the trustee for your estate.
  • Individuals with huge debts and assets also choose Chapter 11 – when they do not meet the debt limitations of Chapter 13.
  • Best when you are catching up on past due payments.
  • Continue to keep your business open.
  • You are allowed to:
  •  
    • Reject leases
    • Reject contracts without any penalties involved
    • Avoid liens
    • Extend time to repay your creditors
  • Cons against Chapter 11:
  •  
    • Can take several months to several years
    • Expensive
    • Reports must be filed with the court and U.S. Trustee’s office on a regular basis
    • Filing fee is $830
 

Conclusion

If you’re in a difficult financial situation that just keeps getting worse, filing for bankruptcy may be the opportunity you need to seek broad protection against credits.  Call the Bankruptcy Law Offices of “insert attorney name” in Palm Springs.  Let us help you discover financial freedom and get your life back to the way it was.