Our law office can help you regain control of your finances when control has slipped away. Bankruptcy law gives us some powerful tools to reach this goal. Allow us to guide you through this difficult and problematic area with dignity and confidence.
Here Are Frequently Asked Questions About Bankruptcy:
What is Bankruptcy?
It is a legal status, Federal laws create rights and liabilities for individuals who file a bankruptcy. The term is synonymous with “insolvency” the inability to pay debts when they become due.
What Can Bankruptcy Do For Me?
A bankruptcy case starts by filing a petition. Included with the petition are lists of all assets and all debts. The assets and debts are referred to as the “Bankruptcy Estate.” Individuals can file a Chapter 7 or Chapter 13 bankruptcy petition. The party filing the petition in a voluntary bankruptcy is called the “Debtor.” Upon filing the petition the court appoints a “Trustee” to administer the bankruptcy estate. The goal of a bankruptcy is to receive a “Discharge Order.” The discharge order relieves the debtor of their legal obligation to pay most of the debts.
What is the “Automatic Stay?”
Immediately upon filing the bankruptcy petition, the law creates the “Automatic Stay,” which stops all collection activity. That means no collection calls, no lawsuits, no wage garnishments and no foreclosures. Violation of the automatic stay is contempt of court. Creditors back-off.
What is Chapter 7?
Chapter 7 is referred to as a “straight” bankruptcy or a “liquidating” bankruptcy. The trustee looks at the bankruptcy estate to find “non-exempt” assets which can be sold to pay debts. Your attorney will list exemptions, allowing you to keep most of, if not all of your property. The majority of Chapter 7 bankruptcies are “No Asset” bankruptcies, meaning there are no assets for the trustee to take and sell. You keep your property.
What is a Chapter 13?
Chapter 13 is referred to as a “A Re-organization of Debt for an Individual with a Regular Income.” The debtor keeps all his property because he is paying his debts under a court approved “Plan of Re-organization.” To fund the plan, the debtor must have sufficient excess income after the necessities of life are paid. These plans last for 3 to 5 years.
Is Bankruptcy Right for Me?
If you want more information, or have any questions, please contact me and I will respond promptly.
Contact Ginger Marcos today at (888) 532-6879, or browse the website for more information about Personal Injury And Accident Law or General Civil Litigation.