Californians have had it rough in recent years due to the downturn in the economy. Many are facing bankruptcy. If you are having financial troubles you may want to speak with a bankruptcy attorney Pasadena firm. Bankruptcy isn’t for everyone. Sometimes some good financial advice and guidance is enough to get you moving in the right direction again. If you have tried everything and you just can’t make the numbers add up properly, there is no shame in exploring bankruptcy as an option. In the right circumstance, it is just simply the right thing to do.

Do you need to file for bankruptcy? Consulting a bankruptcy attorney Pasadena firm is the first step in the process. You will meet with a bankruptcy attorney Pasadena firm in their office to discuss your options. They will examine all of your documents, debts, assets and income and determine whether you could benefit from debt counseling instead of filing for bankruptcy. If you are able to get back on track on your own, your attorney may be able to help you, or they might refer you to a debt counselor. If bankruptcy is in your future, the next step is to determine whether to file for Chapter 7 or Chapter 13.

There are several chapters in bankruptcy law, but most people fall into one of two categories: Chapter 7, where all your debt is wiped clean, or Chapter 13, where some or none of your debt is forgiven, and what remains needs to be paid back through a payment plan. A bankruptcy attorney Pasadena firm will do a “means test” with you to determine which chapter you will file under, in other words, do you have the means to pay back the debt or not. If you do, based on income, assets, and expenses, then you will need to pay back some or all of the debt that you have incurred. If you do not, you will file under Chapter 7 to have all your debt erased. The “means test” is in place to avoid wealthy individuals from having all their debt forgiven, when they do, in fact, have the means to pay it back. Americans can apply for a Chapter 7 bankruptcy every 8 years, while there is no limit when filing for a Chapter 13 bankruptcy.

After filing, you and a bankruptcy attorney Pasadena firm will set up a meeting with the creditors. This is a short meeting to ensure that all the information that you have entered is accurate and complete. You will be required to take an oath, since this meeting is a legal proceeding. A bankruptcy attorney Pasadena firm will coach you on the kinds of questions that you will be asked and help you find the correct answers so that your bankruptcy moves smoothly. After the meeting, your creditors will have 60 days from the date of the meeting to file any lawsuits or contest the bankruptcy. This almost never happens, however, because creditors have insurance to cover their losses in bankruptcy.

It really is a last resort, but bankruptcy isn’t an end. It can be a new beginning for many people struggling with overwhelming debt. Contact a bankruptcy attorney Pasadena firm if you are in financial distress.

This guest post was written by Rosita Schwark, on behalf of DCDM Law Group, where a business bankruptcy lawyer can assist you in all steps of a bankruptcy filing, from understanding the implications on your business to helping you to determine what type of bankruptcy is best to guiding you through the entire bankruptcy process. To know how your business can benefit from hiring bankruptcy attorneys, you may also visit