Bankruptcy
What is a Chapter 7?
When a consumer files a Chapter 7, the petition requests the court discharge the consumers debts. The rational behind a Chapter 7 is the consumer relinquishes their property (except for what is exempt. Generally most property is exempt) in exchange for a discharge of their debts.
Chapter 7 is generally not the right choice for people who want to keep their property (such as homes and cars) because creditors may still take the property in order to satisfy depbts.
What is a Chapter 13?
When a consumer files a Chapter 13, a “plan” is submitted to court outlining how you will pay of some of your debts over time. Chapter 13 allows you to keep your property if you cna make the payments, or, in other words, stick to the plan. Generally the payments will be as large as you current monthly payments
Can you save my house?
Yes, if you can resume regular monthly payments and pay monthly on the arrearage the filing of bankruptcy will stop the foreclosure process and all other collection activity. Or, bankruptcy filing will stop the foreclosure process to give time to sell your house.
Will my creditors stop harassing me?
The law forbids creditors from attempting to collect their bill. Some creditors have been known to be too aggressive and the Bankruptcy Court will severely punish such a creditor which does not follow the rules.
How will bankruptcy effect my credit?
The bankruptcy filing will be reported by the credit agencies for seven years. Your bankruptcy does not prevent a creditor from giving you credit. In the end, a bankruptcy can make your credit better. Even if all your payments have been made on time, you may owe so much money that a new credit application would be denied. Some creditors even believe you are a better credit risk after the bankruptcy filing has relieved you from all your unsecured debt.
How long is the process?
Generally, your paperwork can be done within several days. After the court filing, a Chapter 7 will most often conclude within four months. A Chapter 13 repayment program will last from three to five years.
Will I ever be able to buy a house?
Most mortgage companies tell us that after 2 years, bankruptcy doesn't hurt your chances of buying a home, so long as you are otherwise qualified.
Will I be able to finance a new car after bankruptcy?
If your income qualifies you, you will most likely be able to finance a new car. However, you will probably be charged a higher rate of interest.
How much does it cost?
There is a court filing fee of about $200 that must be paid to the Federal Court. Attorney fees vary, depending on what your case requires the lawyer to do. We have payment plans available for most cases, and we will work with you to come up with a fee and a payment plan that you will be comfortable with.
Can a paralegal or a legal document service represent me?
In California, legal document preparers and paralegals cannot represent you. They cannot even give you legal advice. Further, they cannot represent you in court. Only an attorney can do those things for you. People go to them because they feel that it is cheaper than hiring a lawyer. Bankruptcy cases are very complicated and it takes the full attention of an experienced attorney to get the very best outcome for you.
When a consumer files a Chapter 7, the petition requests the court discharge the consumers debts. The rational behind a Chapter 7 is the consumer relinquishes their property (except for what is exempt. Generally most property is exempt) in exchange for a discharge of their debts.
Chapter 7 is generally not the right choice for people who want to keep their property (such as homes and cars) because creditors may still take the property in order to satisfy depbts.
What is a Chapter 13?
When a consumer files a Chapter 13, a “plan” is submitted to court outlining how you will pay of some of your debts over time. Chapter 13 allows you to keep your property if you cna make the payments, or, in other words, stick to the plan. Generally the payments will be as large as you current monthly payments
Can you save my house?
Yes, if you can resume regular monthly payments and pay monthly on the arrearage the filing of bankruptcy will stop the foreclosure process and all other collection activity. Or, bankruptcy filing will stop the foreclosure process to give time to sell your house.
Will my creditors stop harassing me?
The law forbids creditors from attempting to collect their bill. Some creditors have been known to be too aggressive and the Bankruptcy Court will severely punish such a creditor which does not follow the rules.
How will bankruptcy effect my credit?
The bankruptcy filing will be reported by the credit agencies for seven years. Your bankruptcy does not prevent a creditor from giving you credit. In the end, a bankruptcy can make your credit better. Even if all your payments have been made on time, you may owe so much money that a new credit application would be denied. Some creditors even believe you are a better credit risk after the bankruptcy filing has relieved you from all your unsecured debt.
How long is the process?
Generally, your paperwork can be done within several days. After the court filing, a Chapter 7 will most often conclude within four months. A Chapter 13 repayment program will last from three to five years.
Will I ever be able to buy a house?
Most mortgage companies tell us that after 2 years, bankruptcy doesn't hurt your chances of buying a home, so long as you are otherwise qualified.
Will I be able to finance a new car after bankruptcy?
If your income qualifies you, you will most likely be able to finance a new car. However, you will probably be charged a higher rate of interest.
How much does it cost?
There is a court filing fee of about $200 that must be paid to the Federal Court. Attorney fees vary, depending on what your case requires the lawyer to do. We have payment plans available for most cases, and we will work with you to come up with a fee and a payment plan that you will be comfortable with.
Can a paralegal or a legal document service represent me?
In California, legal document preparers and paralegals cannot represent you. They cannot even give you legal advice. Further, they cannot represent you in court. Only an attorney can do those things for you. People go to them because they feel that it is cheaper than hiring a lawyer. Bankruptcy cases are very complicated and it takes the full attention of an experienced attorney to get the very best outcome for you.