If you wish to eliminate all or part of your debt and start fresh, a Chapter 7 may be appropriate. If you wish to reorganize and repay all or part of your debts, a Chapter 13 may be appropriate. For a detailed explanation of both Chapters, you may contact our office and speak with an attorney.
It is a reorganization Chapter, like Chapter 13. However, Chapter 11 cases do not have debt limits, are generally very expensive and are usually reserved for large businesses, large corporations or individuals with substantial assets.
A debt that has been eliminated or nullified by a bankruptcy.
Very unlikely. Most of your assets can be protected when you file Chapter 7 bankruptcy. Approximately 99% of our Chapter 7 clients do not lose any assets.
No, in chapter 13 you repay all or part of your debts and keep all of your assets.
No, if you are married, you have the option of filing together, but it is not required.
Yes. However, if you wish, you may protect the co-signer by voluntarily paying the debt. You may also file Chapter 13 and obtain a stay to protect a co-signer if the debt is a consumer being paid in full.
No, an authorized user is not responsible for a debt on your credit card.
Yes, you must file in the state in which you have resided for the majority of the six months preceding the date of the filing.
There is a negative impact, but generally not as adverse as people expect. This is because approximately 90% of our clients have bad credit or realize their credit will be bad soon. Consequently, filing bankruptcy means they move from a lot of debt and bad credit, to having bad credit, but being out of debt.
Completing your bankruptcy will also put you in a position to start rebuilding your credit. Rebuilding your credit can nearly always be accomplished much quicker than taking years to pay off the debt.
If you owe just $5,000.00 on a major credit card, at 18% interest, stop using your card entirely and never miss a minimum payment averaging $100.00 per month, it will take you approximately 39 years to pay off the debt.
That’s 9 years longer than it would have to pay off a 30 year mortgage on a home.
Generally, in about two or three years, you can rebuild reasonably decent or good credit.
Yes. However, you can voluntarily pay any creditor if you want. For example, your car or your home.
Paying for a car, a home or even your rent can help. Also, obtaining cash secured credit cards, or retaining zero balanced credit cards will help as well. Borrowing against your own savings and repaying yourself is also an excellent way to rebuild your credit.
A debt is secured when the creditor can take back specific property if you do not make the payments. Most debts that are secured are created when you sign loan papers giving a creditor a security interest in your property.
Mortgages, home equity loans, automobile loans, boat loans where you have pledged personal property such as a paid-off motor vehicle as collateral, judicial liens, statutory liens and tax lines are example of secured debts.
An unsecured debt is a debt for which you have not pledged any property as security for the loan and a creditor has not filed a lien against the property.
Credit card purchases, cash advances, department store credit card purchases, gasoline credit cards, medical bills, bank rent, utility bills, accounting fees, legal fees, child support, alimony, students loans, deficiencies for repossessed vehicles, foreclosed second mortgages, gym dues, and personal loans are all examples of unsecured debt.
No. However, if your employer is one of your creditors a bankruptcy notice would be sent to the employer. Also, if you are in a reorganization Chapter 13 and stop your payments, your employer may be notified.
Yes, because California is a community property-community obligation state.
Many factors must be evaluated by your lawyer before making this decision. To name a few, the length of the marriage, the separate assets of the individuals, the assets of the community, when the debts were incurred, the presence or absence of a prenuptial agreement, whether the parties are living together or have separated.
Never make this decision without consulting an attorney.
Yes, generally after about two years or less the bankruptcy has little effect on purchasing real estate particularly if you have taken steps to rebuild your credit.
Sometimes. This is a complex issue that requires the advice of an attorney.
Eight years after the date of the previous filing.
As soon as you retain our office. From that point the law requires that your creditors deal with us and no longer bother you.
A homestead will protect a certain amount of equity in your home from your creditors. Consult an attorney to determine if it applies to you and if so, the amount of equity that will be protected in your situation.
This is one of the mist crucial decisions you will ever make. It involves your financial future, your assets, and your opportunity to “start fresh” and rebuild your credit. Never make this decision yourself, or based on the advice of a paralegal. Consult an attorney.