Bankruptcy and Creditors' Rights
Our Bankruptcy and Creditors’ Rights practice group provides a wide variety services to our clients, including Chapter 7 Bankruptcies, Chapter 13 Bankruptcies and a variety of services to protect Creditor’s Rights.
Chapter 7 Bankruptcy
A Chapter 7 Bankruptcy is what most consider the “fresh start” Bankruptcy. A Chapter 7 Bankruptcy enables those that qualify to eliminate most of your unsecured debt within approximately 90 to 100 days after filing your case with the Court. To qualify for a Chapter 7 Bankruptcy your income must be below the median income and/or prove that you are unable to make a payment towards your debts after paying your necessary and reasonable monthly living expenses.
A Chapter 7 Bankruptcy is also called the “liquidation” Bankruptcy. In a Chapter 7 Bankruptcy you are only able to keep a certain amount of property (that has value) after filing for Bankruptcy. Thankfully, in California, there are property exemptions which may be able to protect some or all of your property while in Bankruptcy. Additionally, commencing January 1st, 2021 homeowners may now protect up to $600,000 in equity in their home, depending on their county of residence. This new law will enable most homeowners eligible for a Chapter 7 Bankruptcy to do so without the risk of losing their home.
A Chapter 7 Bankruptcy does not relieve you from or “discharges” you from certain debts. These debts include most federal, state and local taxes, credit cards that were used to pay taxes, student loans, restitution, child support and spousal support obligations. Additionally, if you own a vehicle you are still responsible to make the monthly car payment after Bankruptcy if you wish to keep the vehicle. If you are a homeowner, you are still required to make your monthly mortgage payment if you wish to keep your home after Bankruptcy.
Once your Chapter 7 Bankruptcy is filed with the Court, the Bankruptcy court issues what is called an “Automatic Stay” Order. This is a federal court order that prohibits creditors from attempting to collect a debt while you are in Bankruptcy.
Chapter 13 Bankruptcy
A Chapter 13 Bankruptcy allows those that qualify to reorganize their monthly debt obligations by making a monthly payment toward their debts while receiving protection from their creditors. A Chapter 13 Bankruptcy is a three-to-five-year payment program that eliminates paying interest and penalties to your creditors and may allow you to pay a reduced percentage of your debt. There are various reasons why someone may decide to file a Chapter 13 Bankruptcy vs. a Chapter 7 Bankruptcy.
Filing a Chapter 13 Bankruptcy offers individuals protection from their creditors while paying one monthly payment towards their debt.
Creditor’s Rights/Business Reorganization
Our Business Bankruptcy and Creditors’ Rights Practice involve all areas of business reorganizations, liquidations, and out-of-court workouts to ensure our clients receive the best possible results. We currently represent and have represented business debtors, Chapter 7 Trustees, creditors’ committees, and secured creditors in major Chapter 11 cases throughout California.
We also represent clients in state court receivership actions, as well as representing the state court receivers themselves. Our practice extends to counseling creditors of their rights and obligations (especially under the Federal Fair Debt Collection Act), collection litigation (including pursuing prejudgment writs of attachments) and the restructuring secured and unsecured debt.
To discuss your options please contact our offices to schedule your free consultation with one of our experienced Bankruptcy attorneys.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.