Bankruptcy

Are you constantly hounded by creditors and debt collection calls? We can help! We help individuals and businesses obtain relief from the burdens of excessive and overwhelming debt through the bankrupcy process. We offer a free initial consultation to determine whether bankruptcy is the best option for you. We offer low-cost bankrupcy solutions for individual and joint debtors, with $0 down. Stop harassing creditor phone calls today! Call us today at (858) 224-5865 to start your case.

As bankruptcy is not suitable for every person or circumstance, we also counsel debtors on other helpful options such as non-bankruptcy workouts with creditors, loan modification, and other debt reduction solutions. In fact, we believe that bankruptcy should be the absolute last resort for a debtor, as it is usually much more detrimental to a debtor's credit and long-term finances than available other options.

Many unfortunate events may disrupt a family's finances such that they may need to consider filing bankruptcy. For example, many consumer bankruptcy cases are necessitated by unforeseen medical emergencies or an unexpected loss of income. Others may find themselves with out-of-control consumer debt obligations that are too onerous to repay.

The stated purpose of bankruptcy under Chapter 7 and Chapter 13 of the Bankruptcy Code is to give debtors a "Fresh Start." This allows many individuals to discharge (or wipe away) many unsecured debts and restructure existing secured and unsecured debt such that the debtor may start anew. Immediately after the bankruptcy petition is filed, an automatic stay goes into effect, preventing all enforcement actions on the part of creditors until either the end of the case, or the creditor obtains relief from the automatic stay by petitioning the court. The automatic stay also prevents pending lawsuits from continuing against the debtor. This gives debtors a break from from creditor harassment, and creditor enforcement actions such as lawsuits, wage garnishment and levy against the debtor's personal and real property.

Under a Chapter 7 liquidation case, a debtor or debtors jointly (e.g., husband and wife) file a petition with the local bankruptcy court commencing their case. As a part of the petition, debtors are required to disclose all of their relevant financial and creditor information to the court. Only individuals and small businesses meeting certain income and asset limitations and other requirements may file a petition under Chapter 7.

Through the Chapter 7 process, the non-exempt assets of the debtor are liquidated by the court appointed trustee, and any remaining proceeds are used to satisfy creditor claims. The debtor's exempt property in California includes many household and personal items (up to a certain dollar amount), certain retirement accounts, automobiles (up to a certain dollar amount), and others. In practice, many Chapter 7 cases are considered "no asset" cases, where the trustee does not liquidate any of the debtor's property, as to do so would not provide any meaningful financial recovery to creditors. This process allows certain debtors to eliminate unsecured and undersecured debt while at the same time keeping possession of key assets such as an automobile or family home. At the end of the process, the successful debtor obtains a discharge of all non-dischargeable unsecured debts. Generally, past debts for child/spousal support, back taxes, criminal restitution, debts incurred as a result of fraud or malicious behavior, and certain other debts may not be discharged, except sometimes under hardship or other limited principles.

Under a Chapter 13 reorganization, debtors are allowed to reduce and renegotiate their debts and repay them according to a three to five year, court-approved repayment plan. Unlike liquidation under Chapter 7, the debtor's assets are not subject to liquidation. This type of bankruptcy may be the best option for those who do not meet the income requirements for filing Chapter 7 bankruptcy, or who do not want their non-exempt assets liquidated. Also, Chapter 13 has the advantage of allowing homeowners to strip off certain second mortgages from their homes, and allowing debtors to "cram down" the value of an automobile or other secured debt.

Please give us a call today at (858) 224-5865, so that we can give you a free evaluation of your specific situation and help you become debt-free.


Disclaimer: The Information on this website is for general informational purposes only. Nothing on this page, or associated with these pages, documents, comments, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website (and receipt and/or viewing of this information) is not intended to create or constitute an attorney-client relationship. You should consult an attorney for individual advice regarding your own situation.