Valencia Bankruptcy | Valencia Bankruptcy Attorney | Valencia Bankruptcy Lawyer
Valencia Bankruptcy and Debt Settlement Attorney
The Valencia bankruptcy and debt settlement law firm of the Law Office of Jonathan
Panossian, A PC is experienced in representing the legal needs of our clients and their
businesses in the Valencia area.
Times are tough! With an economy that is lagging, rising medical bills, and unmanageable credit card
balances, individuals all over the Valencia area are looking for relief from their debts. Law
Office of Jonathan Panossian, A PC is more than just a bankruptcy law firm. Read on to see what
service we provide.
Chapter 7 Bankruptcy - Valencia
Chapter 7 bankruptcy is like pushing the "reset" button. It is designed for the type of person who is so
upside-down with their budget that they cannot pay for their ordinary living expenses like food, rent,
and clothes. To add to that, they have all this credit card debt that they wouldn't be able to pay back
based on their budget, so they push the "reset" button and file for Chapter 7 bankruptcy. In addition
to being upside-down with their budget, the debtor needs to pass the Means Test as required by the
new 2005 bankruptcy laws in order to file Chapter 7 bankruptcy. Chapter 7 bankruptcy is a good
solution for medical bills, credit card/department store debts, and most other unsecured debts. Other
unsecured debts, such as child or spousal support, most taxes, government fines or debts incurred by
fraud are not dischargeable in bankruptcy. Chapter 7 bankruptcy is usually not a good solution for
getting "caught up" with secured debts, such as late mortgage payments for your property in
the Valencia area or your car payments. In most cases, Chapter 7 bankruptcy stops
garnishments, lawsuits, and harassment permanently. It also stops repossessions and foreclosures
temporarily, but, in many cases, not permanently. Find out more on how to prevent foreclosure in Valencia. Most people choose to file for Chapter 7 bankruptcy
because it is the most cost-effective way to eliminate your debts.
When you file for Chapter 7 bankruptcy, the Chapter 7 Trustee looks to see what assets you have to
take from you to pay back creditors. These assets are called "non-exempt" assets. Remember,
however, that most Chapter 7 cases are "no asset" cases. This means that the Chapter 7 Trustee is not
interested in any of your assets and you will keep what you own and lose nothing. As your
attorney, the Law Office of Jonathan Panossian, A PC will exempt your assets, such as your Valencia home, to the fullest extent allowed by law.
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Chapter 13 Bankruptcy - Valencia
Chapter 13 bankruptcy is designed for the type of person who makes more than their living expenses
and/or has assets that are non-exempt that the debtor would like to protect. This isn't the "reset"
button like Chapter 7 bankruptcy, but a planned payment system to pay back your debts over the
course of three to five years. The Chapter 13 bankruptcy plan payment amount varies from debtor to
debtor and takes into account your net income, value of non-exempt assets, and many other relevant
facts. Chapter 13 bankruptcy is a good solution to get caught up with your secured debts, such the
arrearages on your mortgage for your Valencia home or your car payments. However, there
are limits as to the amount of unsecured and secured debts that you can have and still file for Chapter
If you are facing foreclosure of your Valencia home or other real property, filing for Chapter 13
may allow you to save your property by proposing a feasible payment plan to the Court. Once the plan
is approved, creditors must accept it. Non-dischargeable taxes, back child support and student loans
may be paid without interest during the life of the Chapter 13 bankruptcy. After looking at your income,
expenses, and all other relevant facts, the Law Office of Jonathan Panossian, A PC will be able to tell
you what your payment amount would be.
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While Chapter 7 and Chapter 13 bankruptcy is the most cost-effective way to eliminate your debts in
most circumstances, it isn't for everyone. If someone has a non-exempt asset that would be taken in a
Chapter 7, but does not find the Chapter 13 plan payment to be feasible, and they have the ability to
pay, bankruptcy may be avoided by negotiating a settlement with creditors.
With debt settlement, creditors may be willing to settle for a lump sum that is greatly reduced from the
amount that is actually owed, agree to a payment plan, or a combination of the two. The types of debts
that can usually be resolved are the unsecured debts that would be discharged in a Chapter 7
bankruptcy, like credit card debts, automobile repossession deficiencies, medical bills, and personal
loans.Click here for more on how to find a professional debt settlement attorney in Valencia.
Law Office of Jonathan Panossian, A PC can assess your individual situation and tell you if you can
resolve your debts without bankruptcy. Call to schedule a free consultation to see if debt settlement is
right for you!
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Second Mortgage Resolution
The real estate market in the Valencia area has been hit hard! Property values in
the Valencia area have been falling drastically and continue to do so.
If you are so upside-down with your property that there is no equity to support your second mortgage,
then it may be possible to do a "lien strip" through a Chapter 13 bankruptcy. A "lien strip" is where we
ask the Bankruptcy Court to convert your second mortgage from a secured debt, where it is tied to your
property, to an unsecured debt, like a credit card bill. Unsecured debts in Chapter 13 bankruptcy are
paid only based on the amount of your surplus income every month. If surplus income is insufficient to
pay unsecured creditors, these creditors get paid only a portion of the debt owed, or in some cases,
It may also be possible to settle your second mortgage without the use of filing for bankruptcy. If you
are so upside-down with your property that there is no equity to support your second mortgage, it may
be possible to settle your second mortgage by offering a cash settlement, payment plan, and/or a
combination of the two. With money being tight in this economy, a second mortgage holder that knows
that they will receive nothing through foreclosure may be willing to accept a cash settlement for a
fraction of the balance.
Law Office of Jonathan Panossian, A PC will be able to advise you as to what course is best for you.
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IRS Tax Resolution
Law Office of Jonathan Panossian, A PC is here to help you with your creditors and the IRS is one of
them! Whether it is through Chapter 7 or Chapter 13 Bankruptcy, Offer In Compromise, Payment Plans,
Penalty Abatement, or Innocent Spouse Relief, the Law Office of Jonathan Panossian, A PC will advise
you how to resolve your tax liabilities.
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