Most people who come to us did not get into debt by being careless. A job loss, a divorce, a medical emergency or an injury can turn manageable bills into a crisis. Bankruptcy is a legal tool created by federal law for exactly these situations. Since 2008, we have helped families in Whittier and across Los Angeles County, including La Habra, Norwalk and Santa Fe Springs, understand their options.
Whittier cases are filed in the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division.
How bankruptcy stops collection right away
The moment your case is filed, a court order called the automatic stay takes effect. It tells most creditors to stop collecting from you. The automatic stay can stop:
- Wage garnishment, when a creditor takes part of every paycheck.
- Bank levies, when a creditor freezes or takes money from your bank account.
- Foreclosure, if the case is filed before the sale.
- Repossession of your car.
- Lawsuits and collection calls, letters and texts.
The stay has some limits. For example, it does not stop child support collection, and it may be shorter if you had another case dismissed recently. We review this with you before filing.
If a sale, levy or repossession is about to happen, see filing an emergency bankruptcy in Whittier.
Chapter 7 or Chapter 13?
Most people file under one of two chapters of the Bankruptcy Code.
Chapter 7: a fresh start in a few months
Chapter 7 wipes out many debts, like credit cards, medical bills and personal loans. Most cases finish in about three to four months. You must pass a means test, which compares your income to other California households of the same size. Learn more about Chapter 7 bankruptcy.
Chapter 13: catch up over time
Chapter 13 sets up a three-to-five-year repayment plan. It is often used to stop a foreclosure and catch up on missed mortgage or car payments, or by people who earn too much for Chapter 7. Learn more about Chapter 13 bankruptcy.
In both chapters, California bankruptcy exemptions protect much of what you own.
Common bankruptcy myths
"I'll lose everything."
Many people who file keep their home, car, clothes, furniture and retirement savings. California exemptions protect these, up to certain values. We review what you own before filing so there are no surprises.
"My credit is ruined forever."
A bankruptcy stays on your credit report for a number of years, but it does not stop you from rebuilding. Once old debts are gone, it is often easier to keep up with new bills, and on-time payments help your credit over time.
"Everyone will find out."
Bankruptcy is a public court record, but most people never look. Your employer is usually not told unless it is a creditor or is handling a garnishment or plan payment.
"Only irresponsible people file."
Bankruptcy exists because hard times happen to good people. Using the law to protect your family is a responsible choice.
How we work with you
- A free consultation. Steven Ibarra meets with you himself, in person or by video, often the same day. He listens, reviews your debts and income, and explains your options in plain language.
- Help with paperwork. Bankruptcy takes a lot of documents. Annissa Henry, our bankruptcy processor, guides you through the checklist and keeps your file organized.
- With you at every step. We prepare your petition, get you ready for the meeting of creditors, and answer your questions until your case is done.
Learn more about Steven Ibarra, or read the step-by-step process of filing and our bankruptcy FAQs.
Take the first step
You do not have to figure this out alone. Bankruptcy consultations are free, and we are available 24/7. Contact us or call (562) 612-7806 to talk about a fresh start. Hablamos español.