Bankruptcy in Fullerton

Thank you for visiting the Fullerton Bankruptcy Law Offices of “insert attorney name”.

If creditors are calling you frequently or your bank has sent you letters threatening to foreclose on your home, contact our offices.  Also, please take a moment and visit our “Why hire us” page to see what separates us from the other Bankruptcy attorneys in and around Fullerton.

Bankruptcy Overview

• Filing for bankruptcy provides you with a fresh beginning – not a stressful end.
• Legal process offered by the Federal government for people looking for a solution to their financial problems.
• Laws allow you to liquidate your assets or pay your debts through a repayment plan.
• Laws protect not only individuals but businesses also.
• Millions of people file for protection under Federal bankruptcy laws each year.
• Collectors will stop bothering you - an automatic stay is put in place.
• Bankruptcy remains on your credit report for about 10 years.
• Being a co-signer for a friend or family member holds you responsible for debts incurred.

The time to file for protection is when

• You are getting telephone calls day and night
• Your paycheck is less than your debts
• Collection letters keep coming
• A lawsuit is filed against you

Fullerton Bankruptcy Court location

• Handles all bankruptcy issues.
• Bankruptcy cases cannot be filed in California state courts.

Bankruptcy Court for Central District of California

Ronald Reagan Federal Building & U. S. Courthouse

411 West Fourth Street

Santa Ana, CA 92701

714-338-5300

Federal and California Bankruptcy Asset Exemptions

Once you file for bankruptcy, all of your property becomes property of the bankruptcy estate.

A bankruptcy trustee will be in charge of this property.

California exemptions allow you to protect your:

• Home – exemption varies from $75,000 to $150,000 (depending on age, any disabilities, income)
• Vehicles – up to $2,300
• Social Security deposits – up to $2,700 for single or $4,050 for couple
• Clothing, personal property, furnishings – exemption is 100%

• Miscellaneous other property – check with one of our attorneys for a complete list 

Bankruptcy Reform Act

If you are planning on filing for bankruptcy, you must provide:

• A Credit Counseling certificate
• Proof of income for 6 months – prior to filing
• Current tax return
• Financial Education certificate – prior to discharge
• Qualify under the Means Test – see Chapter 7 bankruptcy
• 80-90% of people who apply qualify

The Fair Debt Collection Practices Act

• The Federal Trade Commission enforces the Fair Debt Collection Practices Act.
• Prohibits debt collectors from being abuse, unfair or using deceptive practices to collect what is due them.

Covers:

• Household debts
• Credit cards
• Auto loans
• Medical bills
• Etc.

Violators are punished by law and face:

• Punitive damages
• Financial compensation

Types of Debt

Secured

• Allows a creditor to foreclose or repossess your home or car.

Unsecured

• Held by creditors that have no claim to your property (credit cards, medical bills).

Bankruptcy Types

The United States Bankruptcy Code, Title 11, offers several types of protection:

Chapter 7 – Bankruptcy Reform Act

• Best option when you want to be free of debts.
• You can only file for Chapter 7 protection once in eight years.
• The filing fee is $299.
• Your assets are sold in order to pay your debts
• Relieves you of unsecured debt, such as:
  • Credit cards
  • Bank loans
  • Medical bills
  • Past due utility bills
• An automatic stay is imposed upon filing.
• Protects you from:
  • Creditors calling
  • Creditors threatening you
  • Creditors need the court’s permission to foreclose on your home or repossess your car.

You must qualify through a Chapter 7 Means Test.

• Your income will be compared to the median California income.
• Less than the median amount - you qualify for protection.
• More - the court calculates any disposable income and all unsecured debts.
• Disposable income for the next 5 years is less than $6,000 - you can file for protection.
• More than $6,000 but less than $10,000 - still able to file for protection.
• Discharge of obligations to pay the debt – takes a few months

Eliminates:

• Credit card bills
• Medical or doctor bills
• Lawsuits against you
• Etc.

Cannot be discharged:

• Child support
• Tax debts that are current
• Student loans

Chapter 13 – Wage Earner Bankruptcy

• Referred to as Consumer Debt Adjustment
• Interest-free repayment plan – repay all or part of your debts
• For those who have a regular income
• Must have disposable income – money left over after subtracting monthly expenses from monthly income
• Greater protection for your assets – bankruptcy exemptions apply
• Automatic stay – prohibits creditors from calling you or contacting you
• Stops foreclosure on your home
• Stops repossession of your vehicles
• Must make monthly payments – plan lasts between 36-60 months

Debts Not Discharged

• Child Support
• Alimony
• Taxes
• Student loans
• Personal injury debts – driving while intoxicated, malicious harm
• Criminal penalties
• Etc.

Chapter 11 – Business Reorganization

• Option for businesses and corporation.
• Chapter 11 is the most expensive option.
• Individuals that do not want to file for Chapter 7 and owe too much for Chapter 13.
• Creditors and the court must approve your plan for reorganization.
• Do not have to make any payments until the plan is approved.

 

This site is built and hosted by www.legalberry.com Providing solutions for people looking for lawyers and providing solutions for lawyers looking for clients.