If you are overwhelmed by debt and are looking for a fresh start, you should consider filing for bankruptcy. Depending on the type of debt, after you complete your bankruptcy case, all of your debt may be erased. However, before filing for bankruptcy, discuss your financial situation with a bankruptcy attorney in Los Angeles. A bankruptcy attorney in Los Angeles will examine your financial situation and help you decide whether filing for bankruptcy is right for you.
 
If you do decide to file for bankruptcy, your bankruptcy attorney in Los Angeles may recommend either Chapter 7 or Chapter 13 bankruptcy for you depending on your goals and whether you are eligible for both types of bankruptcy. For example, if you do not have a significant number of assets that you would like to keep, your bankruptcy attorney in Los Angeles may recommend that you file for Chapter 7 bankruptcy. However, to be eligible to file for Chapter 7 bankruptcy after the changes to the Bankruptcy Code in 2005, you must either earn less than the median income for the state of California, or satisfy the means test. As of 2011, the median income in California is $43,107 for a single individual. The means test is a calculation that your bankruptcy attorney in Los Angeles will perform that examines the amount of disposable income you have remaining each month after paying all necessary expenses. The smaller the amount of disposable income you have, the more likely you are to be eligible to file for Chapter 7 bankruptcy in Los Angeles.

However, if you have regular and reliable income for at least 6 months prior to filing for bankruptcy and you would like to keep your assets, your bankruptcy attorney in Los Angeles may recommend that you file for Chapter 13 bankruptcy. Regular and reliable income is important when determining your eligibility for Chapter 13 bankruptcy because you will develop a repayment plan for your Chapter 13 bankruptcy. Your bankruptcy attorney in Los Angeles will help you develop this plan, and the plan will take anywhere from 3 to 5 years to complete. In addition, the bankruptcy court must approve the plan. After you obtain approval, you will make monthly payments to your Chapter 13 bankruptcy trustee. Then, the bankruptcy trustee will disperse the funds to your creditors that are included as part of your Chapter 13 plan.

Bankruptcy Discharge
The bankruptcy court grants a bankruptcy discharge at the end of your bankruptcy case. A discharge means that the debts included as part of your bankruptcy case will no longer be enforceable by your creditors. In other words, the debts are essentially erased. In a Chapter 7 bankruptcy, a bankruptcy discharge usually occurs about 3 to 4 months from the date you filed your initial bankruptcy petition. However, in a Chapter 13 bankruptcy, the court will not grant a bankruptcy discharge until you complete the repayment plan.

Filing for bankruptcy can be a confusing process, and you may have many questions about the bankruptcy procedure. Therefore, contact a bankruptcy attorney in Los Angeles to answer any questions you have and to help you determine if filing for bankruptcy is the right decision for you. If you are considering filing for bankruptcy without the assistance of an attorney, visit http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankruptcyWithoutAttorney.aspx for additional information regarding how to file for bankruptcy on your own. Information about filing for bankruptcy is also available online at the United States Bankruptcy Court, Central District of California's website, http://www.cacb.uscourts.gov/.