Brent George | Thousand Oaks Bankruptcy Attorney | California

• Central District Consumer Bankruptcy Attorney Association
• National Association of Consumer Bankruptcy Attorneys
• Ventura County Bar Association

• AmJur-Evidence

I filed a Chapter 7 bankruptcy for a husband and wife who owned vehicles, motorcycles and other items valued well in excess of the exemption limits that impact how much personal property debtors can keep in a Chapter 7 bankruptcy. Although my clients were upset about it they had accepted the fact that in order to get their discharge that they needed very badly they would lose some of their property. The fact was that there was over $15,000 in personal property they owned that could not be exempt due to the exemption limitations. I was able to use certain strategies involving exemption allocation and property valuation that resulted in my clients being able to keep all of their property while still getting their bankruptcy discharge. They were very happy clients! I filed a Chapter 13 on behalf of a husband and wife who owned a home in Newbury Park, California. The primary reason for filing the bankruptcy was to strip off the second lien that existed on their residence. Due to financial problems they were unable to pay both their first and second mortgage payments every month. Approximately 9 months prior to filing they had stopped paying their second mortgage. When I initially met with the clients the bank holding the second mortgage had already begun the pre-foreclosure process. My clients were stressed and worried that they might lose their home. I filed a Chapter 13 petition that immediately halted any foreclosure efforts. I was able to strip the second mortgage off the property such that it was lumped in with the clients' unsecured creditors. A plan was confirmed whereby the clients will only have to pay their unsecured creditors back 32 percent of the balance on their debt over the life of the 60 month plan. So long as the clients continue to make their monthly payment (which they can afford) to the trustee for the life of the plan they will have additional equity in the property due to the second mortgage being stripped off and they will get a discharge of all of their unsecured debts after paying 32 percent of that debt. I filed a Chapter 7 petition for a client that had been sued by a credit card company. The client did not respond to the lawsuit and as a result the credit card company was able to obtain a default judgment and then garnish 25 percent of my client's wages from every paycheck. By the time my client came to me the credit card company had garnished over $2,000 from my client's paychecks during the prior 90 days. He had also been sued by a debt collector that was in the process of enforcing a judgment against him. He was receiving multiple phone calls from creditors who were making his life miserable. I filed the Chapter 7 bankruptcy on behalf of my client and immediately halted any further garnishment of his pay and stopped the debt collector lawsuit in its tracks and prevented the creditors from contacting him any more. Not only that but we were able to get back every penny that the creditor had garnished during that 90 day period prior to filing (in accordance with the law). My client received his discharge and no longer had to worry about that debt, phone calls from debt collectors, the new lawsuit filed by the debt collector, or any of the other unsecured debts he had as of the day the petition was filed.

I believe that clients should look for a lawyer that is experienced, honest, responsive and compassionate. Most importantly a client should look for a lawyer that completely understand the needs of that particular client and understands the precise result that the client wants the lawyer to achieve. Although the primary purpose of a bankruptcy filing is to help a debtor get relief from debt every case and every client is different. As such every client has different needs and concerns. It is important that a lawyer always understands that.

The initial bankruptcy consultation is extremely important to both the client and to the attorney. One reason is because often in a bankruptcy situation time is of the essence, especially if the client is facing a foreclosure sale or if a creditor is garnishing a a client's wages, levying a bank account, or if the client has just been sued by a creditor. It is critical that the clients' options are thoroughly explored during the initial consultation because not every client can qualify for a Chapter 7 and in some cases a Chapter 7 will not make sense for several reasons. Often times a Chapter 13 will make more sense, especially if the client has a second or third mortgage or has excess equity or assets. Information concerning the debtor's income, for the last 6 months as well as for the month going forward, is extremely important as it relates to the initial consultation. As such, if a client receives pay stubs then 6 months worth of pay stubs should be provided. If a client is self-employed then profit and loss statements should be provided. Moreover, if a client owns real property then information concerning the fair market value of the property as well as the existing balances on loans should also be provided at, or prior to, the consultation. If it turns out that bankruptcy, either chapter 7 or chapter 13, is not a good option or if the client simply does not want to file a bankruptcy then very often debt settlement strategies can be immediately employed to settle a debt for less than 50 percent of the balance owed.

By far the most rewarding aspect of my job is seeing the difference in the client between when he or she first comes to meet with me and after the discharge comes in or after the debt is settled. Often times clients are stressed and distressed when I first meet them. They are worried. When the debts and lawsuits that are causing such stress are eliminated by way of discharge or debt settlement the clients always report back to me that their lives have improved and that they are able to sleep at night because they have received a fresh start. That is a very rewarding experience for me.