Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
You should not be nervous, especially since you don't own a home, and your total debt is not high. I always make the recommendation to call the California Bar Association to help find a reputable Bankruptcy attorney. The number is 415-538-2000. Additionally, don't be afraid to "shop around", as I have seen attorneys charge $800 - $3000 for the same service, and higher fee does not mean better attorney.
You will need to provide 1) a list of the names, and addresses, and the last 4 numbers of the account numbers for all creditors; 2) the year, make, model, and Kelly Blue Book value of all cars; 3) paystubs for the past 6 months 4) federal
You will need to provide:
1) a list of the names, and addresses, and the last 4 numbers of the account numbers for all creditors;
2) the year, make, model, and Kelly Blue Book value of all cars;
3) paystubs for the past 6 months;
4) federal tax returns for the past 2 years;
5) a list of all financial accounts (bank accounts, stocks, pension accounts, etc.).
The Bankruptcy process:
1) take a "Credit Counseling" class - a 60 minute class accessible online;
2) file the Bankruptcy petition has with the court, along with the Credit Counseling Certificate;
3) about 30 days after the petition is filed, you have to attend a "creditors' meeting", where you will be asked questions about your petition - mainly things like "is everything in the petition true", "has anything changed since you filed the petition", etc;
4) take the "Debt Management" class - also 60 minutes online - and file this with the court;
5) Receive the "Discharge" notice about 6 months after the case is filed.
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Both are allowed to keep a car worth about $3500 (exemption amount plus cost to sell the car) or less (after subtracting the balance on the car loan). Additionally, since you will not be using the homestead exemption (since you don't own a home), you can use up to $20,725 of that exemption for any other property you own, including the cars. This means that you should be able to keep both cars, even if either or both have more than $3500 equity.
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