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Workers affected by loss of unemployment benefits and the new potential to file bankruptcy
28 June 2017

Approximately 2 million persons are to lose unemployment insurance benefits by January 1, 2014 due to the end of the federal extended benefits programs. Typically, unemployment benefits last 26 weeks without the federal extensions, which are coming to an end. For many, the weekly unemployment benefits are what kept persons/debtors sustaining check-to-check. However, due to this unfortunate derailment, many families will have to work with less income per month. HOWEVER, there is a one positive benefit most do not see- filing for Chapter 7 Bankruptcy.

As an experienced bankruptcy attorney serving your city this is the time to file for bankruptcy. (proudly serving: Whittier, La Habra, La Palma, Brea, Fullerton, Placentia, Anaheim, Azusa, Diamond Bar, Montebello, Buena Park, Yorba Linda, Anaheim Hills, Orange, Rowland Heights, Hacienda Heights, West Covina, Covina, El Monte, Rosemead, San Dimas, Glendora, Rosemead, Bell Gardens, Norwalk, South Gate, and Pico Rivera). There are many benefits that are received when filing. However, before filing, one must qualify in order to file (READ BELOW FOR QUALIFYING).

  1. Common debts that are discharged in a Chapter 7 Bankruptcy are:
    • utility bills (past due amounts only)
    • collection agency accounts
    • credit card charges, revolving charge accounts (including overdue and late fees)
    • repossession deficiency balances
    • auto accident claims (except those involving drunk driving)
    • medical bills
    • personal loans from friends, family, and employers
    • dishonored checks
    • student loans (only few types though)
    • business debts
    • money owed under lease agreements (i.e. past due rent)
    • civil court judgments (unless based on fraud)
    • tax penalties and unpaid taxes (usually over 3 years old)
    • veterans assistance loans and overpayments, and
    • social security overpayments.
  2. QUALIFYING
  3. Qualifying: many debtors do not understand that the wonderful benefits of filing for Chapter 7 Bankruptcy ONLY come if a debtor actually qualifies to file for Chapter 7 Bankruptcy. Since many debtors are not aware of this, they merely assume they can always file for Chapter 7 Bankruptcy and are shocked when they are told by an experienced attorney they can not. The benefits of filing for Chapter 7 Bankruptcy while you qualify (within Orange County, Los Angeles County, Riverside County, and San Bernardino County) are impactful and valuable:

    Determining whether a debtor qualifies for Chapter 7 Bankruptcy is complex and requires the skills of an experienced bankruptcy attorney. Debtors residing in various cities within Los Angeles County, Orange County, Riverside County, San Bernardino County, and other surrounding counties have various income and expense standards that have been designated. For example, a single debtor with no children (household size of 1) in the City of Whittier can make less income per month then a single debtor in the City of La Habra, but not in La Habra or Diamond Bard.

    Conversely, a single debtor living in the City of Fullerton, Brea, Yorba Linda, Anaheim, Placentia, and Buena Park must actually make less money per month or have more qualified expenses per month then a single debtor in Whittier, La Palma, Diamond Bar, Montebello, Hacienda Heights, and West Covina.

    In sum, it is crucial that a debtor facing a dramatic pay cut use the opportunity to file for Chapter 7 bankruptcy in order to discharge the credit card debt, medical bills, and other judgments and debts that are preventing them from moving forward and reestablishing credit. This opportunity may not come around again if a debtor’s income increases down the line (ie. obtaining employment or receiving continued unemployment benefits), thus leaving a debtor in a position unable to file for Chapter 7 Bankruptcy relief down the line.

  4. Conclusion
  5. Filing for bankruptcy is a complex process and requires proper planning to determine whether a debtor qualifies. The process for filing also entails adherence to strict deadlines to avoid dismissal (not discharge) of your case and selecting the appropriate exemptions to protect assets (house, vehicle/cars/boats/motorcycle/trailers. Thus, it is crucial that you select a highly skilled bankruptcy attorney serving your city (Whittier, La Habra, La Palma, Brea, Fullerton, Placentia, Anaheim, Azusa, Diamond Bar, Montebello, Buena Park, Yorba Linda, Anaheim Hills, Orange, Rowland Heights, Hacienda Heights, West Covina, Covina, El Monte, Rosemead, San Dimas, Glendora, Rosemead, Bell Gardens, Norwalk, South Gate, and Pico Rivera). I make it my goal to provide each client the dedicated time and experience to assist the client with his/her bankruptcy.

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