Kostopoulos Bankruptcy Law

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What Are the Common Mistakes to Avoid When Filing for Bankruptcy in California?

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Filing for bankruptcy is a significant financial decision, and making mistakes in the process can have serious consequences. So, what are the common mistakes to avoid when filing for bankruptcy in California?

The most common mistakes include transferring assets before filing, taking on new debt, cashing out retirement funds, failing to disclose financial details, and waiting too long to file. Avoiding these missteps can protect your case and maximize your financial relief.

With decades of experience guiding Californians through bankruptcy, I’ve helped countless individuals successfully resolve their debts while protecting their assets. Let’s explore the most critical mistakes you should avoid when filing for bankruptcy in California.

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What Happens If You Cosign a Loan and the Other Person Doesn’t Pay?

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Cosigning a loan can be a helpful way to assist a friend or family member in securing financing. But what happens if you cosign a loan and the other person doesn’t pay?

As a cosigner, you are legally responsible for repaying the loan if the primary borrower fails to make payments. The lender can demand full repayment from you, including interest and late fees, without first attempting to collect from the borrower. This can impact your credit score and financial standing.

With decades of experience helping individuals understand their financial obligations, I’ve seen firsthand how cosigning can lead to unexpected financial burdens. Let’s examine the risks, consequences, and steps you can take to protect yourself.

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How To Stop Wage Garnishment in California

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If wage garnishment makes it difficult to afford your essential living costs, you can request a Claim of Exemption from the court to either lower or eliminate the garnishment. This process demonstrates that the withheld amount jeopardizes your ability to meet essential needs.

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FAQs About Stopping Wage Garnishment in CA

Can You Stop Garnishment Once It Starts?
Yes, by filing a Claim of Exemption, negotiating with creditors, or filing for bankruptcy.
What Funds Are Exempt From Wage Garnishment?
Social Security, disability benefits, and public assistance are fully exempt.
How Much of My Wages Can Be Garnished?
For most debts, up to 25% of disposable income can be garnished. For child or spousal support, garnishment can reach 50%-60%.
What Happens if I File for Bankruptcy?
Bankruptcy imposes an automatic stay, immediately stopping wage garnishment.
How Long Does It Take to Stop Garnishment?
•Filing a Claim of Exemption: 10-30 days.

•Bankruptcy: Immediate upon filing.
What Are the Common Mistakes to Avoid When Filing a Claim of Exemption?
Avoiding common errors when filing a Claim of Exemption ensures your request is not delayed or denied:


Incomplete Forms: Ensure all sections of WG-006 and WG-007/EJ-165 are filled out correctly.

Missing Supporting Documents: Include pay stubs, bills, and a detailed financial statement to substantiate your claim.

Late Filing: Submit your forms promptly to the levying officer, usually within 10 days of receiving the garnishment notice.

Failing to Prepare for Opposition: Be ready for a court hearing if the creditor disputes your claim.


Attention to detail and prompt action can significantly improve the likelihood of approval.
Can a Wage Garnishment Be Reinstated After Being Stopped?
Yes, wage garnishment can be reinstated if:





The Debt Remains Unpaid: If the original debt isn’t resolved after a temporary stoppage.



A New Judgment Is Secured: Creditors may file for a new judgment after correcting procedural errors or reapplying.



Bankruptcy Protection Ends: Once a Chapter 13 repayment plan is complete, creditors may resume garnishment for debts not fully discharged.

To prevent reinstatement, resolve the debt entirely or maintain compliance with bankruptcy repayment terms.

Can Personal Loans Be Included in Bankruptcy in California?

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Yes, personal loans can be included in bankruptcy in California, and they are usually dischargeable. This includes personal loans from banks, credit unions, friends, family, or employers. Unsecured personal loans, which are loans not backed by collateral, are eligible for discharge in both Chapter 7 and Chapter 13 bankruptcies.

Filing bankruptcy in California involves understanding the types of debt dischargeable, assets and exemptions, eligibility criteria, credit impact, costs, legal procedures, and the role of a bankruptcy lawyer in guiding individuals through the process.

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How to Avoid Paying a Civil Judgement on Your Credit Report in California

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Struggling with a judgment on your public record could leave you wondering how to maneuver around its removal. In this clear-cut guide, we’ll unpack the specific steps for how to remove a judgment from public record in California, offering practical solutions to help you move forward. Ready to clear your name and restore your financial reputation? Let’s dive in.

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The Pros and Cons of Debt Settlement vs Bankruptcy in California

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Are you a California resident drowning in debt? You’re not alone. In the Golden State, where the cost of living often outpaces income growth, many find themselves struggling with overwhelming financial obligations. Whether you’re in the bustling tech hub of San Francisco, the entertainment capital of Los Angeles, or anywhere in between, understanding your debt relief options is crucial.

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