Providing Superior Bankruptcy, Debt Consolidation and Negotiation Services

When you're filing for bankruptcy, it is critical to understand your legal rights. Bankruptcy laws protect consumers from financial ruin and the potential to be abused by outstanding creditors. By allowing consumers to have their qualifying debts eliminated, bankruptcy offers all Americans a second chance at controlling their debt. The California bankruptcy attorneys of Diamond, Burt & Akhkashian, LLP recognize that financial hardships can happen to anyone, and consumers who fall into this category sometimes do not have the ability to comply with creditors’ repayment demands.

Financial problems can be deeply disturbing and extremely stressful. You should not feel alone or embarrassed about considering bankruptcy. It is only natural that you would prefer to pay your bills, but bankruptcy may be your best option if you are not able to pay all of your debt. Diamond, Burt & Akhkashian, LLP will help you to determine the best course of action possible within the following areas:

• Debtor and Creditor Law
• New Bankruptcy Laws
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy
• Debt Consolidation
• Petitions
• Motions for Relief from Stay
• Objections to Discharge
• Adversary Complaints
• Bankruptcy Fraud
• Foreclosure

As of October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act took effect, enforcing tougher restrictions on consumers trying to file under Chapter 7 bankruptcy. Diamond, Burt & Akhkashian, LLP will advise you of your legal rights as these new bankruptcy laws enter their infancy stages, and will fight to keep your bankruptcy rights protected in the future.

"We pride ourselves in being advocates for our clients, while maintaining and conforming to high ethical and legal standards. Effectively advocating the rights and interests of a client requires dedication, persistence, and tireless effort by an attorney. We ensure our clients' rights and interests are advocated without compromise."

-Los Angeles Bankruptcy Attorney Khachik Akhkashian

If you or someone you know in Los Angeles or throughout Southern California needs debt consolidation legal counsel, call Attorney Khachik Akhkashian at  866-715-6757, or use the contact form provided on this site to schedule your free consultation.

Practice Areas and Legal Definitions

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws. Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty and face irreparable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt.

New Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

As of October 17, 2005, the requirements under which a debtor may file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act. Debtors are now required to seek budget and credit counseling six months prior to filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 will now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income. It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Bankruptcy Fraud:
Bankruptcy fraud is a business crime of filing for bankruptcy with criminal intent, that is with the intention of evading payment for goods even though the buyer has funds that could be used to pay for them, or accepting payment for goods or services but not supplying them. Common types of bankruptcy fraud include petition mills, false oath, concealment of assets, and fraudulent conveyance. Multiple filings are not per se fraudulent; as with all things in the law, it depends on the circumstances. Bankruptcy fraud should be distinguished from strategic bankruptcy, which is not a criminal act (but may prejudice a judge against the filer if there is evidence that bankruptcy is being used strategically).

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

If you or someone you know needs debt consolidation legal counsel or the assistance of an experienced Los Angeles, California bankruptcy lawyer, contact Attorney Khachik Akhkashian today at  866-715-6757, or use the contact form provided on this site to arrange for your free initial consultation.

Frequently Asked Questions

The following information includes frequently asked bankruptcy questions. The answers stated are general in nature and are not intended to apply to every situation. Each case is different and carries its own set of circumstances which must be taken into consideration by competent legal counsel.  For more specific information about your bankruptcy case, please contact Diamond, Burt & Akhkashian, LLP today at  866-715-6757.

What is a Chapter 7 Bankruptcy? 
In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property, and most liens, such as real estate mortgages, survive. The value of property which can be claimed as exempt varies from state-to-state. Other assets, if any, are sold (liquidated) by the interim trustee to repay creditors. Many types of unsecured debt are cancelled. There are 19 (as of 2005) general classes of debt not discharged in a Chapter 7. Common exceptions to discharge include child support, most taxes, most student loans (unless the debtor prevails in a difficult-to-win adversary proceeding brought to determinate the dischargeability of the student loan), and fines and restitution imposed by a court for any crimes committed by the debtor.

A disadvantage of filing for personal bankruptcy is that a record of it stays on the individual's credit report for 10 years. This may make credit less available and/or terms less favorable. That must be balanced against the removal of actual debt from the filer's record by the bankruptcy, which tends to improve creditworthiness. Consumer credit and creditworthiness is a complex subject, however. Future ability to obtain credit is dependent on multiple factors and difficult to predict.

In a Chapter 7 case involving an individual debtor, the creditors generally have sixty (60) days from the first date set for the meeting of creditors to object to the discharge of the debtor and/or the dischargeability of a specific debt. If the deadline passes without any objections to the debtor`s discharge being filed, the court will issue the discharge order. If any objections to the dischargeability of specific debts are filed, they will be heard by the court, but will not delay the granting of a discharge with respect to other debts. An objection to discharge or to the dischargeability of certain debts is considered a separate lawsuit (an adversary proceeding) within the bankruptcy and may result in a trial before the judge assigned to the case. Corporate and partnership Chapter 7 debtors do not receive discharges. If there are no assets from which creditors can be paid, the trustee will prepare a report of no distribution and the case will be closed. If there are assets that are not exempt, funds will be available for distribution to creditors. The court will set claims deadlines and notify all creditors to file their claims. The trustee will proceed to collect the assets, liquidate them and distribute the proceeds to creditors. When the assets have been completely administered, the court will close the case.

What if I am married?
If you are married, you may file a joint petition. A joint petition is the filing of a single petition by an individual and the individual`s spouse. In order to qualify for a joint petition, you must be married on the date that the joint petition is filed. Unmarried persons, corporations and partnerships must each file a separate case. If you are an individual and have a business, you may not file a single petition for yourself and your business; each must be a separate bankruptcy case.

What does it mean if a case is dismissed?
A dismissal order ends the case. Upon dismissal the automatic stay ends and creditors may start to collect debts, unless a discharge is entered before the dismissal and is not revoked. An order of dismissal itself will not free the debtor from any debt. Often, a case is dismissed when the debtor fails to do something that is required (such as show up for the creditors` meeting, answer the trustee`s questions honestly, produce books and records the trustee requests), or if it is in the best interests of the creditors. A dismissal without prejudice means that the case is dismissed with no rights or privileges to be considered as waived or lost, such as the ability to file again.  A dismissal with prejudice means that the case is dismissed and bars the right to bring or maintain the action on the same claim.

Will I lose my house, car and other personal property?
Not necessarily, each state has laws that determine which items or property are exempt from being taken away. For example, many states exempt personal items such as furniture and clothing. In addition, other kinds of property are exempt up to a limit. These exemption limits mean that any equity that you have in the property above the limit is not exempt. The Bankruptcy Court can take the property and sell it, pay off any creditors, give to you the exemption amount and keep the rest for other creditors.

How do the new changes in Bankruptcy Laws affect consumers?
The Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, in effect since Oct. 17, 2005, requires debtors to pass more stringent guidelines to determine whether they can have their debts liquidated through Chapter 7 or whether they must enter a repayment plan through Chapter 13. Below is a description of each category. Because the new law makes it more difficult for consumers to file bankruptcy, consumers should consult with bankruptcy attorneys in their area to make sure they file the necessary forms to discharge debt.

• A strict financial means test that will prohibit many debtors from filing a liquidation bankruptcy under Chapter 7;
• A requirement that all debtors must receive a briefing from an approved credit counseling agency at least six months before they can file their bankruptcy case;
• A requirement that debtors take an approved class on debt management techniques before they receive their bankruptcy discharge;
• A provision making it easier for a court to dismiss a bankruptcy case outright or to convert a Chapter 7 case to a Chapter 13 case; and
• A provision permitting a court to impose sanctions on attorneys, or even on debtors, for filing a Chapter 7 case that is dismissed or converted to a Chapter 13 case.

What debts are dischargeable?
11 U.S.C. §523 lists exceptions to discharge. In general, all other debts are dischargeable. Some debts listed in 11 U.S.C. §523, such as those based on fraudulent conduct, embezzlement or willful and malicious injury to another, are discharged unless a complaint to deny discharge of that debt is filed in a timely manner with the bankruptcy court. Ordinarily, these complaints must be filed within sixty (60) days of the first date set for the meeting of creditors. Additionally, debts that were not listed on your bankruptcy schedules or that were incurred after you filed bankruptcy are generally not discharged. Denial of a discharge goes to the debtor`s entire proceeding, while determination of non-dischargeability goes to a particular debt only. A request for denial of discharge is usually granted because the debtor has defrauded a creditor, concealed property of the estate, made a false oath, presented or used a false claim, refused to obey any lawful order of the court and other reasons contained in the Bankruptcy Code. A non-dischargeability of a debt excepts a particular debt from the discharge. This means that if the debt is determined non-dischargeable the debtor is still obligated to that creditor.

Professional Profiles

Diamond, Burt & Akhkashian, LLP understands that the process of bankruptcy can be a stressful and frustrating experience. The Firm provides a comfortable yet professional atmosphere where the lawyers meet personally with each client and strive to make the bankruptcy and/or debt consolidation process as smooth and as stress-free as possible.  Each client is important to Diamond, Burt & Akhkashain, LLP., and is provided with respectful and effective legal advice and representation.

If you or someone you know in Los Angeles or throughout Southern California needs debt consolidation legal counsel or the assistance of an experienced bankruptcy lawyer, contact Diamond, Burt & Akhkashian, LLP today at  866-715-6757, or use the contact form provided on this site to schedule your free consultation.

FIRM ADDRESS:
Diamond, Burt & Akhkashian, LLP
3055 Wilshire Blvd #1200
Los Angeles, CA 90010
Phone:  866-715-6757
Hours: M-F, 8:00AM-5:00PM

Khachik Akhkashian, Attorney

EDUCATION:
Loyola Law School, J.D.
California State Polytechnic University, Pomona, B.S.

COURTS ADMITTED:
California
U.S. District Court, Central District of California

PROFESSIONAL MEMBERSHIPS:
Los Angeles County Bar Association
Orange County Bar Association
Los Angeles Lawyers Club
Armenian Bar Association

PRACTICE AREAS:
Bankruptcy
Business & Corporate Law
Immigration
Civil Defense

Michael D. Burt, Attorney

EDUCATION:
Southwestern University School of Law, J.D.
University of California, Santa Barbara, B.A.

COURTS ADMITTED:
California
U.S. District Court, Central District of California

PROFESSIONAL MEMBERSHIPS:
Los Angeles County Bar Association
Orange County Bar Association
American Bar Association
Association of Trial Lawyers of America

PRACTICE AREAS:
Family Law
Estate Planning
Real Estate Transactions
Civil Litigation

David D. Diamond, Attorney

EDUCATION:
Southwestern University School of Law, SCALE Program: J.D.
Michigan State University, B.A.

COURTS ADMITTED:
California
U.S. District Court, Central District of California
U.S. District Court, Northern District of California
U.S. District Court, Southern District of California
U.S. District Court, Eastern District of California
U.S. Court of Appeals, Ninth Circuit

PROFESSIONAL MEMBERSHIPS:
National Association of Criminal Defense Lawyers
Association of Trial Lawyers of America
Los Angeles County Bar Association
American Bar Association
California Attorneys for Criminal Justice
Ventura County Bar Association
Legal Education Conference Center - Bar Grader
Guest Speaker on Criminal Law - National Youth Leadership Forum
High School Mock Trial Coach
Adjunct Professor of Criminal Justice, National University
Vice President, Criminal and Juvenile Justice, American Bar Association YLD

PRACTICE AREAS:
Criminal Law
Personal Injury
Negotiations/Settlements

Amir John Showrai, Attorney

EDUCATION:
Western State Unversity College of Law, J.D.
University of California, Los Angeles, B.A.

COURTS ADMITTED:
Washington

PRACTICE AREAS:
Immigration
Family Law
Estate Planning
Business Law
Civil Litigation