Christopher P. Walker has been helping residences of Anaheim, Orange, Yorba Linda, Villa Park, Fullerton, Brea and Placentia file for bankruptcy for 15 years. He is experinced in all aspects of Bankruptcy law and can explain the procees and the alternatives to bankruptcy in a free half-hour consultation. Moreover, our pricing is very competative. We invite you to price other attorney offices to compare prices.
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Though it is a common enough word, what exactly does bankruptcy mean? And what are its implications? As is to be expected, filing for bankruptcy is a complicated process but before such a step is taken it is essential to understand exactly what it is all about.
Simply put, bankruptcy can be defined as the legal process thorough which individuals or businesses who end up in financial trouble are able to work out their debts and pay them out under the protection of the bankruptcy court. Often "liquidations" or "reorganizations" are the words that are used to sum up the process that unfolds when you file for bankruptcy.
The two kinds of bankruptcy that you can file for are Chapter 7 and Chapter 13. There are various factors that would determine whether you should opt for Chapter 7 or Chapter 13. Through Chapter 7 Bankruptcy you can use liquidation, which literally means that you sell off property in order cover as much of the debt as possible, but at the same time you will have enough of the property left over in order for you to start all over again financially. On the other hand, the Chapter 13 Bankruptcy is the reorganization type of bankruptcy where the debtor is allowed three to five years over which to pay back the debts.
One should keep in mind that there are intricate details to this legal process that should be taken into consideration before decisions are made about filing for bankruptcy. Who qualifies? Which kind would apply to you? And will you be able to keep your property? There are many such questions that arise in such a situation. It would be a good idea to consult a competent bankruptcy attorney who can guide you through these complicated decisions and procedures.
Filing for bankruptcy cannot be the solution to all your financial problems though. In fact, bankruptcy cannot cover all kinds of debts. Common kinds of debts that bankruptcy does cover are credit card debts, medical bills and unsecured loans. However, debts related to child and spouse support and other tax debts cannot be covered in bankruptcy.
What Is Chapter 7 Bankruptcy
The answer to this question lies in the answer to a broader question: "What is the ultimate aim of filing for bankruptcy?"
If filing for Bankruptcy is an opportunity for a debtor to emerge out of a financial crisis and start afresh, then Chapter 7 of the Bankruptcy Code is the way to achieve this end relatively faster. Under Chapter 7 of the Bankruptcy Code all non-exempt property of the debtor is sold and the proceeds of the same are distributed to the creditors. In most cases where Chapter 7 is brought into force the debtor has no assets to lose, therefore the fresh start takes place relatively faster.
How Can I Be Sure This Is The Best Way?
Also known as liquidation (converting assets into money) or a straight bankruptcy, Chapter 7 Bankruptcy is the most common form of bankruptcy filing. This type of bankruptcy filing accounts for as much as 65% of all Consumer Banking filings.
As mentioned before, this is one of the faster ways of starting afresh, and more so if there are no objections from any of the parties involved. Ordinarily, most (if not all) debts would be discharged within months of the attorney filing a bankruptcy petition.
How Does Chapter 7 Bankruptcy Work?
A trustee is appointed who collects all non-exempt property, sells the assets and distributes proceeds from this sale to appropriate creditors. Chapter 7 is different from other bankruptcy filings because the debtor needs not make a payment to the trustee.
Even though in some cases this would mean that you will lose all your assets, this need not always be the case. It is strongly recommended that if you are apprehensive and feel you will lose your assets, discuss the matter with The Law Office of Christopher P. Walker.
Under Chapter 7 Bankruptcy, the debtor receives a discharge on all dischargeable debts. There are 19 general classes of debt, such as child support, most taxes and student loans that are discharged under Chapter 7 Bankruptcy.
An added advantage with Chapter 7 bankruptcy is that by signing a reaffirmation agreement a debtor can continue to pay for a car loan or a mortgage on their home. This agreement is in place because as per the US Government Bankruptcy Code a debtor could be allowed to retain some or all of his property.
How Do I File For A Chapter 7 Bankruptcy?
Once you get down to filing for Bankruptcy you'll know exactly what we mean by repeating that our attorneys know best! Filing for bankruptcy is the fulfillment of a clearly laid of set of rules and procedures, but it is as complex as it seems simple. You need to be sure about just one thing: "Do you need to file for bankruptcy?" We can help you understand the answer to that question. Be sure the information you provide is complete and correct. Once these preliminary things are taken care of, leave it to the attorneys to take your case to its logical conclusion.
What Is Chapter 13 Bankruptcy?
When someone files for bankruptcy under Chapter 13 of the Bankruptcy Code, their aim is to have the opportunity to repay some or all the debts in their name, in better terms, i.e. lower or no interest. Unlike Chapter 7 which involves liquidation of assets, this process allows the debtor to use whatever income they may have in the future to pay off the creditors. Needless to say, filing Chapter 13 Bankruptcy is applicable for a debtor who does have a regular income, and thus can afford to request for such adjustments, or reductions.
The United States Bankruptcy Code gives the debtor a ceiling of 5 years, within which the creditors must be paid back. While the attorney will safeguard your interests, the entire process is carried out under the supervision of the courts.
How Does Chapter 13 Bankruptcy Work?
While debtors are allowed to keep all of their property, the court approves a new interest-free plan for repayment. A written plan is created giving details of all the transactions that will occur, and the duration of the same. The repayment must begin within thirty to forty-five days after the case has started. The transitory stage of paying a trustee who then pays a creditor, as in Chapter 7 Bankruptcy is usually eliminated with Chapter 13 Bankruptcy. Although, in some cases people may involve a trustee who would take care of disbursing money to the creditors as per the plan. Also, as per the law the creditors must strictly adhere the repayment plan approved by the court and are in fact prohibited to collect any claims from the debtor. Your attorney will prepare new repayment plan to best suit your situation.
The one advantage of Chapter 13 over Chapter 7 Bankruptcy is the full discharge option which is not applicable under Chapter 7 filing. For example, if a debtor manages to complete all necessary payments in the plan, he/she is given a full plan discharge. (There are a few exceptions to this case, which your attorney will guide you about if necessary.) Yet another advantage of the Chapter 13 filing is that a repayment can be created even if creditors disagree with it, as long as it is approved by the Court. Although, in all fairness the court allows creditors also to file an objection, in case they may have any.
Who Can File For Chapter 13 Bankruptcy?
The most important criteria for a person to be able to file for Chapter 13 Bankruptcy is that the individual must have a regular income. There are a few other criterions that must be met for filing a Chapter 13 Bankruptcy, your attorney will be the best person to introduce you to these!
How Can I File For Chapter 13 Bankruptcy?
Let's just say our attorneys will ensure that you don't need to bog yourself down by trying to understand the complicated details of this answer. Essentially, the filing for Chapter 13 Bankruptcy entails the following:
. Determine whether Chapter 13 is the best solution for you.
. Prepare a budget.
. Examine individual cases to figure out whether require filing of Chapter 13 bankruptcy, or can be tackled in some other way.
. Determine and implement methods of dealing with secured creditors.
. Devise a chapter 13 plan, and fill out the forms.
. Pay the filing fee and complete the process of filing the forms and pleadings.
. Attend whatever meetings you maybe required to attend; with the creditors, court hearings etc.
. Obtain a discharge once the payments have all been made, and the plan terminated.
Bullet points have a habit of making things look neat, orderly and simple. Much like our efficient attorneys who will straighten out the crumples in the process of filing for Bankruptcy. There's a lot that lies between the lines, and it goes without saying that our attorneys will take care of these things. All you have to do is call for an appointment. Thereafter, our attorney on the other side of that phone call will handle, and solve your financial crisis.
