How To Protect Assets in California?
When you’re struggling to overcome financial obstacles, it can feel like you’re all alone. The truth is, countless Los Angeles families are falling behind on their mortgage payments, auto notes, and other debts. If you start to miss payments, your creditors will begin to threaten to take back your belongings, your car, or even your home.
Fortunately, you have options! Call or text us today at 323-916-8660 to request a no-obligation asset protection consultation. One of our experienced California attorneys will explain the requirements for filing bankruptcy and how the laws can provide fast and legal asset protection.
Asset Protection Laws in California
When you take out a loan to pay for a car or a house, it is typically "secured" by whatever you are financing. This means that if you fall behind on payments, the lender can assume possession of the property you purchased.
For example, if you took out a mortgage to pay for your home, you probably signed a deed of trust that permitted the lender to take possession of your house if you default. This allows the lender to foreclose on your home and kick your family out, no matter how long you have lived there.
The Best Strategies To Protect Assets From Creditors
Filing for bankruptcy in California can provide your family with the asset protection you need. As soon as you file your petition, the court issues an automatic stay that orders your creditors to immediately stop collection efforts against you, including repossessions and foreclosures. Once the automatic stay is in place, your creditors won’t be permitted to contact you at all.
In addition to providing temporary asset protection through the automatic stay, bankruptcy can eliminate your debt and give you a second chance at financial stability. When it comes to personal bankruptcies in California, you can choose between Chapter 7 and Chapter 13. Chapter 7 lets you wipe out most of your unsecured debts by discharging them. Even though California law permits a court-appointed trustee to sell some of your property to pay towards your debts, this rarely occurs in practice.
If you’d prefer guaranteed asset protection, Chapter 13 is the way to go because it never requires you to liquidate your possessions. Rather than wiping out your debts, Chapter 13 reduces and reorganizes them into a 3-to-5-year repayment plan. As long as you stick to the program, you can enjoy total asset protection while only paying back about 10% of your total debt.
The Most Common Causes of Asset Collection
The term “asset collection” refers to a process that allows debt collectors to accept your property as a payment towards your debts. When California creditors obtain court judgments against you, they can usually make you liquidate assets to pay back what you owe them.
We Can Help You Protect Your Assets
At DebtStoppers, we offer our clients customized asset protection plans that enable them to eliminate their debts and hold on to their possessions. Call or text us today at 323-916-8660 to schedule a free debt analysis with one of our talented California lawyers.
Don’t let anyone take away the belongings you’ve worked so hard to purchase! Call or text DebtStoppers today at 323-916-8660 to get a perfectly-tailored bankruptcy plan for your family.