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There’s a lot of misinformation floating around about bankruptcy and debt resolution. While we’ve already busted some of the most persistent bankruptcy myths, the statistics below will paint a clearer picture of the role bankruptcy plays and the impact it can have.

If you don’t know what an adversary proceeding in bankruptcy is, you’re far from alone. Only a small percentage of Los Angeles bankruptcy filers file or face an adversary proceeding. The rate of adversary proceedings has picked up in 2025, though. In the Los Angeles Division, a total of 289 adversary proceedings were filed in 2024. As of mid-July, the count for 2025 stands at 313.

Since 1998, student loan debt has been non-dischargeable in bankruptcy unless the borrower could establish that paying back the loan would create an undue hardship. That’s still true. Now, though, DOJ lawyers have some clear, detailed, and much more borrower-friendly instructions about what constitutes undue hardship.

When you’re struggling with debt, it’s surprisingly easy to find reasons to delay solutions. Though the sense of urgency never fully leaves you, there’s always something standing in the way. Sometimes it’s that you’re scrambling too hard, working extra hours and juggling bills, to stop and take stock. Sometimes it’s that you’re hoping your next tax refund or year-end bonus or that raise you should be getting in the spring will solve your problems.

We’re proud to share that our attorney, M. Erik Clark, has been selected as the 2025 Calvin Ashland Attorney of the Year by the Central District Consumer Bankruptcy Attorneys Association (CDCBAA).

Student loan debt was put on pause in March of 2020, at the beginning of the pandemic. In the five years since, the pause was extended multiple times. Most borrowers were technically required to start repaying in October of 2023, but the pressure was low. There were no penalties for delinquency in the early months, and the Department of Education (DOE) wasn’t pursuing involuntary collections.

Avoid common pitfalls by knowing the moves to avoid before bankruptcy to help you navigate your financial situation. Here are some common steps people struggling with debt take that can backfire if you want to file bankruptcy.

No one likes being in debt, and debt becomes increasingly stressful as balances rise and it gets harder and harder to make timely payments. Discover the mistakes people make with debt and learn how to manage your finances effectively.

Chapter 7 bankruptcy and Chapter 13 bankruptcy can both be powerful solutions for people who are overwhelmed by debt in Los Angeles. They are also very different solutions that benefit different people in different circumstances.

Bankruptcy can be a powerful tool for regaining control of your finances. But it’s not your only option. Most people who ultimately file for bankruptcy protection spend years struggling with finances before they file.

If you’ve received a summons for credit card debt, you may be unsure about what you should do next. You have limited time to act after you receive a summons, so the one thing you definitely shouldn’t do is procrastinate.

Wondering if it is time to consider bankruptcy? Explore 7 crucial signs indicating that you should seek legal advice today.