- Chapter 13
- Chapter 13Posted 447 days ago
Most consumers in California file for Chapter 7 or 13 bankruptcy.
Chapter 13 bankruptcies differ from Chapter 7 in that they involve a repayment of certain debts depending on the debtor’s ability to repay.
In a chapter 13 bankruptcy, the debtor’s income and expenses are analyzed using the means test and a determination regarding the debtor’s disposable monthly income is made. Once it is concluded how much, if…
- Chapter 7
- Chapter 7Posted 447 days ago
In California it is most common for consumers to file for either Chapter 7 or 13 bankruptcy.
Chapter 7 Bankruptcy, also referred to as liquidation, is a process by which people eliminate unsecured debt, while liquidating all unexempt assets.
Unsecured debt is any debt that is not secured by a lien on an asset (i.e. homes and cars). This debt is commonly in the form of credit…
- Life After Bankruptcy
- Life After BankruptcyPosted 453 days ago
When considering bankruptcy, it is natural to worry about how your credit score will be affected after the bankruptcy is complete.
While the bankruptcy may officially stay on a credit report for up to 10 years, many former clients relay that they are quickly offered new credit soon after the process is complete. As a matter of fact, many people just like you find their credit…
- Understanding Bankruptcy
- Understanding BankruptcyPosted 453 days ago
Bankruptcy can be a frightening experience... And there's nothing worse than feeling like you're going through it alone, without a plan or sense of clear direction.
You are creating a New Chapter in your life, and we are here to help you make sure you get a clean start! Our skilled attorneys have years of experience that you can rely on. We can help counsel, guide and…
Bankruptcy FAQ
Frequently Asked Questions About Bankruptcy
WHAT WILL A CHAPTER 7 BANKRUPTCY DO FOR ME?
A chapter 7 bankruptcy will discharge your unsecured debt while allowing you to keep most if not all of your personal belongings. A chapter 7 bankruptcy is often a quick, affordable and practical method of eliminating your debt and moving on with your life.
WHAT IS UNSECURED DEBT?
Unsecured debt, like the name states, is debt that is not secured by any collateral. Typically unsecured debt can be found in the form of credit card debt, 2nd mortgages, payday loans, cash advances, unsecured personal loans, deficiencies from foreclosed homes or repossessed automobiles and more.
DO I REALLY HAVE TO SELL ALL MY BELONGINGS TO PAY OFF CREDITORS?
NO. While chapter 7 bankruptcies are technically called liquidation, most people file their bankruptcy and keep most of their personal belongings. The law allows certain exemptions where people can protect equity they have in certain possessions. People can protect equity they have in their homes, cars, clothes, furniture, personal belongings, 401k’s, insurance policies, bank accounts, cash on hand and much more.
CAN A BANKRUPTCY HELP ME SAVE MY HOME?
YES. Chapter 13 bankruptcies are a powerful tool consumers can use to save their home from foreclosure. A chapter 13 bankruptcy is a different type of bankruptcy where individuals repay a portion of the debt they owe depending how much they can afford. If a homeowner has not paid their mortgage for several months, is behind on the payments and has an ability to repay the amount he owes over time (usually 3 to 5 years), then a chapter 13 bankruptcy may allow the homeowners to stop foreclosure and save the home. Once your case is filed, a quick call to the entity selling the home can IMMEDIATELY STOP FORECLOSURE. DO NOT ALLOW ANYONE TO TAKE YOUR HOME. CALL NEW CHAPTER BANKRUPTCY ATTORNEYS AT (866) 726-6909 FOR IMMEDIATE ADVICE.
CAN A BANKRUPTCY DO ANYTHING TO STOP MY WAGE GARNISHMENT OR MY BANK LEVY?
YES. Once a bankruptcy is filed your wage garnishment will immediately stop and all creditors are required to stop any attempts to levy your bank account.
CAN A BANKRUPTCY STOP ANNOYING AND HARASSING COLLECTION EFFORTS AT MY HOME AND WORK?
YES. Once a bankruptcy is filed an automatic stay is created that protects clients from any collection attempts. Any efforts to contact, collect, annoy, threaten or harass plaintiffs is against the law and is very serious.
CAN A BANKRUPTCY REALLY GET RID OF THE 2ND MORTGAGE ON MY HOME?
YES. In certain cases it is even possible to discharge huge 2nd mortgages. If a person’s home is worth less than the value of the 1st mortgage, many courts have ruled this debt is unsecured and can be discharged like any other unsecured debt. Ask one of our knowledgeable attorney how we can help you get rid of your 2nd mortgage.
CAN BANKRUPTCY STOP LAWSUITS AGAINST ME?
YES. Once your case is filed lawsuits immediately stop and no other court action may proceed without the parties submitting the issue to a judge for review.
HOW WILL BANKRUTPCY AFFECT MY CREDIT SCORE
Many clients find themselves filing for bankruptcy because they have not been paying their monthly mortgage, credit cards bills and car payments. Most clients that consider bankruptcy then have already done a great deal to ruin their credit score. Usually a bankruptcy will reduce your credit score at least 140 points. Many clients however report that a year after their discharge, their credit score is significantly higher than it was before they filed. Many people report their credit scores rise as much as 150 points 12 months after their discharge.
I HAVE ALREADY FILED ONCE FOR BANKRUPTCY, CAN I EVER FILE AGAIN?
YES. You may able to refile in as little as four years after you last filed depending when and what chapter you filed. A short consult with one of our experienced attorneys can help clarify if you are eligible to file and for what chapter.
ARE THERE DEBT LIMITS IN A CHAPTER 7 CASE?
NO. Federal bankruptcy law states that there is no limit to how much debt a debtor can discharge in a chapter 7 case. Debtors can have as little as $5,000 debt or more than $250,000 in unsecured debt and still discharge this debt without a problem.
I HAVE SIGNIFICANT ASSETS, CAN I STILL FILE FOR BANKRUPTCY?
YES. Debtors who own significant assets are still eligible to file for either chapter 7 or 13 bankruptcy. In chapter 7 cases debtors are allowed to exempt a certain amount of assets from the reach of creditors. This means that debtors usually go through a chapter 7 bankruptcies keeping their home, car and all their personal property.
Debtors who file chapter 13 bankruptcies are not subject to debt limits on the other hand. Instead, a debtor’s repayment plan may sometimes depend on the amount of assets a debtor has. A free consultation with one of our experienced attorneys will help debtors understand what assets are able to protected before starting the bankruptcy process.
What To Expect When Filing For Bankruptcy
FILING YOUR BANKRUPTCY CASE
Once your bankruptcy case is filed, you are entitled to further protections. Specifically, once your case is filed, an Automatic Stay is created, allowing you further protections under the bankruptcy code. The Automatic Stay stops:
- Lawsuits
- Wage Garnishments
- Bank Levies
- Foreclosures
- Collections attempts
- Harassment
The Automatic Stay remains in place until creditors take further action to lift the stay, a judge rules to lift the stay or the debtor’s case has finished. A bankruptcy is a powerful tool that can allow debtors alleviate pressure faced by individuals. A free consultation with our attorneys will allow us to devise a plan that can bring you financial peace of mind.
Chapter 13
Most consumers in California file for Chapter 7 or 13 bankruptcy.
Chapter 13 bankruptcies differ from Chapter 7 in that they involve a repayment of certain debts depending on the debtor’s ability to repay.
In a chapter 13 bankruptcy, the debtor’s income and expenses are analyzed using the means test and a determination regarding the debtor’s disposable monthly income is made. Once it is concluded how much, if any, money the debtor can repay, all the appropriate schedules along with a plan are filed and submitted for the Trustee’s review.
As in Chapter 7, the Trustee will examine the case and then will determine the feasibility of the proposed plan. Once the plan is confirmed, the debtor will begin making the arranged monthly payments to the Trustee and repay over the course of 36 or 60 months a percentage of the debt back to the creditors.
Again, once the plan is filed, the Automatic Stay is created and collection attempts will typically stop. Creditors will usually not contact the debtor during the repayment period. Once the repayment period has finished, regardless of how much the debtor has paid, the debtors are relived from their debt for good. At that point debtors can go about re-establishing their credit and moving forward with their lives.
Is filing for Chapter 13 Bankruptcy right for you? Get a FREE consultation with one of our skilled and experienced bankruptcy attorneys to assess your particular situation!
Chapter 7
In California it is most common for consumers to file for either Chapter 7 or 13 bankruptcy.
Chapter 7 Bankruptcy, also referred to as liquidation, is a process by which people eliminate unsecured debt, while liquidating all unexempt assets.
Federal and state law allow certain exemptions whereby debtors can protect equity in their personal belongings including their homes, cars, home and office furnishing and personal belongings. If a debtor passes the means test and fits within the income parameters of chapter 7 requirements, the debtor will be eligible to file their Chapter 7 case and discharging their debt.
If you are struggling with mountains of debt, facing foreclosure, being sued or harassed by creditors or just finding it hard to pay monthly bills then bankruptcy may be your solution.
While many people are afraid of the stigma attached to bankruptcy the truth is a competent attorney can help quickly guide you through the process, help you keep all your belongings, and rid you of all your debt and worries for good.
Contrary to a lot of misinformation circulated regarding new bankruptcy rules, bankruptcy relief is still available. In 2005 Congress passed the BAPCPA, which added certain requirements, including a complicated means test analysis. While these additions did make the process more complex and enhanced the need for a good attorney, the truth is many people file bankruptcy daily and eliminate their debts and worries forever.
To determine if filing Chapter 7 or Chapter 13 Bankruptcy is right for you, contact us for a FREE consultation with one of our experienced bankruptcy attorneys!