Why is it so difficult to file bankruptcy in Fresno, California?

Bankruptcy can be a complex process, especially for those who own significant assets and have an above-average income. Fresno, California residents who own a home and a car and earn an above-average income often face unique challenges when considering bankruptcy. The Liviakis Law Firm is committed to helping navigate these complexities and develop a plan that aligns with your financial situation.

Understanding the Basics of Bankruptcy

Bankruptcy is a legal process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. We have two commonly utilized forms of personal bankruptcy: Chapter 7, known as liquidation bankruptcy, and Chapter 13, often called reorganization bankruptcy.

Challenges for Higher-Income Individuals

Filing for bankruptcy in Fresno, CA with a significant income level can be challenging. The United States Bankruptcy Code sets an income threshold for those who can file for Chapter 7 bankruptcy. If your income is above this limit, you may have to file for Chapter 13 bankruptcy and repay your debts over three to five years.

Home Ownership and Bankruptcy

Another significant challenge individuals face when filing for bankruptcy is home ownership. You may be able to exempt some or all of your home equity in bankruptcy, but it depends on the state’s exemption laws and how much equity you have in your home. In Fresno, California, homeowners can choose between the state’s two systems of bankruptcy exemptions. Navigating these systems and understanding how they apply to your situation can be daunting without professional guidance.

Car Ownership and Bankruptcy

If you own a car outright or are still making payments, you might be worried about losing your vehicle in a bankruptcy. Rest assured, just like a home, a car is considered necessary for the debtor’s fresh start, and bankruptcy law makes provisions for protecting your vehicle up to a certain value.

Consulting with a Professional

The complexities of bankruptcy law can be overwhelming, especially when higher incomes and assets like homes and cars are involved. However, with professional advice from a law firm like Liviakis Law Firm, it can be handled more smoothly. We help individuals in Fresno, California, understand their options and navigate the bankruptcy process to achieve financial stability. Ensuring our clients have all the necessary information to make informed decisions is a priority of ours.

In Conclusion

Navigating the bankruptcy process can be difficult, especially when you own substantial assets and have above-average income. But with the right guidance and representation, you can effectively navigate the complexities of this process and strive towards financial stability. If you or someone you know in Fresno, California, is considering bankruptcy and would like more information, please contact Liviakis Law Firm.