Call Us Now

855 257-7671 or 855 BK-PROS1

Español: 888 872-3507

Follow Us!

Clickdesk Code

Frequently Asked Questions

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidation” (Chapter 7) or “reorganization” (Chapter 13). Under a Chapter 7 bankruptcy, you ask the bankruptcy court to wipe out (discharge) the debts you owe. Under a Chapter 13 bankruptcy, you file a plan with the bankruptcy court proposing how you will repay your creditors. You must repay some debts in full; others may be repaid only partially or not at all, depending on what you can afford. For more information, see the following questions.

 

 

Q?
What is bankruptcy?
A.
Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court.
Q?
Who can file a Chapter 7 bankruptcy petition?
A.
In California, almost any individual, partnership, or corporation may file a chapter 7 bankruptcy petition if he or she resides, has a domicile, a place of business, or property in the United States. If you were granted or denied a Chapter 7 discharge in a prior case within the last 8 years, you might not be entitled to receive a discharge in a subsequently filed Chapter 7 bankruptcy in California.
Q?
What happens if I file a Chapter 7 bankruptcy?
A.
In California, filing a petition with the bankruptcy court commences a Chapter 7 bankruptcy proceeding. The person filing a Chapter 7 is referred to as the “debtor.” The debtor is required to disclose to the court all of his or her property and debts and turn over all nonexempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors. The debtor then receives a discharge of all dischargeable debts.
Q?
What is the general process in consumer bankruptcy cases?
A.
In a Chapter 7 bankruptcy case, we will file several forms with the bankruptcy court disclosing your personal and real property, your income and expenses, debts and property transactions. The Bankruptcy Court will appoint a person called a “Trustee”, who is assigned to oversee your case. About 30 days after your case is filed, we will accompany you to the “Meeting of Creditors” where the trustee reviews your case, verifies your identity, and may have a few basic questions. Despite the name, creditors rarely attend. The meeting lasts only a few minutes. A couple of months later, you should receive a notice from the court that “all debts that qualified for discharge were discharged.”
Q?
Will bankruptcy stop creditor calls?
A.
When we help you file for bankruptcy, we ensure that an “automatic stay” goes into effect and is enforced. The automatic stay prohibits virtually all creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections. Most importantly, once you have retained an attorney, the creditor will be referred to your bankruptcy attorney, and then, by law, the creditors will cease their harassing calls.
PinterestLinkedInGoogle GmailShare