BANKRUPTCY
FILE BANKRUPTCY AND BREATHE
Due to changes in the economy or in personal circumstances, many people are facing challenging times. Debts, once manageable, can become daunting.
Bankruptcy is designed to protect you from crushing obligations and the harassment of creditors. Once your case has been filed, the phone calls from debt collectors will stop and you will be well on your way to a fresh start.
We know you’ve been through a difficult time and we want to make the process of protection as easy as possible for you.
Below you will find a brief explanation of the Bankruptcy process. Read it if you’d like or we will brief you when we meet.
BANKRUPTCY OVERVIEW
If you are pondering filing bankruptcy, there are various options available to you. There are two basic types of Bankruptcy proceedings, Chapter 7 and Chapter 13.
CHAPTER 7
Chapter 7 Bankruptcy, which is also referred to as “liquidation,” is the most common type of Bankruptcy. It involves a court-appointed Trustee who collects the property of the debtor (you) that cannot be protected under current bankruptcy laws. The Trustee then sells the non-exempt property and distributes the proceeds to the debtor’s creditors. The good news is that most if not all of your property can be protected. We have helped hundreds of clients to keep all of their property using the protection of current Bankruptcy laws.
CHAPTER 13
Chapter 13 Bankruptcy, which is also referred to as “reorganization,” is becoming more common in recent months. A Trustee is appointed by the Court to supervise the assets of the debtor (you). Chapter 13 enables the debtor to keep a valuable asset, which otherwise may not be protected under Chapter 7. It’s designed for a person who has regular income, and has some income left over after caring for reasonable personal expenses, allowing for a repayment plan. The debtor proposes a “plan” to repay all or part of their debt to creditors over time, usually over a 3-5 year period.
Chapter 13 may also allow for the elimination of a second mortgage on your home. Certain requirements must be met in order to qualify, so please contact us for further details.
COMMONLY ASKED QUESTIONS
IS IT DIFFICULT TO QUALIFY FOR BANKRUPTCY PROTECTION?
The laws changed in this area a few years ago. There has been much confusion because of this. Many think that the laws have tightened up so much that there is no way to qualify. Nothing could be further from the truth. The protection of Bankruptcy is still available to many who need it. Contact our office to find out which Bankruptcy options you qualify for.
DO I REALLY NEED AN ATTORNEY? MY CASE IS PRETTY SIMPLE.
You are a unique individual. Your financial history, your work situation, and your assets are unlike anyone else’s. There are factors that affect how your case should be handled so as to maximize the benefits obtained through Bankruptcy. An attorney well versed in Bankruptcy law, who knows the nuances of filing cases in California, can assist you to keep your assets and can make this process as painless as possible.
Only a licensed attorney can give you legal advice. Only a licensed attorney can practice law. Only a licensed attorney can go to court with you and protect you against a creditor who objects to any part of your case. Don't cut corners with a legal process as important as this one. It impacts your financial and personal future and that of your family.