FAQ’s

Chapter 7 – Bankruptcy exempts most assets allowing over 90% of our clients to keep everything and lose nothing. In Chapter 13 – Debt Consolidation you keep all assets you choose as debts are paid “as if in full”.

Chapter 7 – Bankruptcy allows 1 discharge every 8 years. Chapter 13 – Debt Consolidation lets you file as often as needed, if filed in good faith and 70% of unsecured debts were paid in a previously discharged Chapter 13.

No, but because California is a community property state, your debts are usually your spouse’s debts. Creditors may pursue your spouse (or ex-spouse) for the entire community debt.

Chapter 7 – Bankruptcy and Chapter 13 – Debt Consolidation remains on your credit report for 10 years. By not filing, credit may show negatives for 7 years from the time you become current. By filing, negative reporting stops immediately. This allows you to begin re-establishing credit faster by keeping house, auto or other payments current. Also, you may obtain a “secured” credit card to help re-establish.

While in Chapter 7 – Bankruptcy or Chapter 13 – Debt Consolidation you must obtain court permission to sell or refinance. After discharge, you may immediately assume a sellers loan or, after two (2) years, qualify for a new home loan with some re-established credit and other normal credit characteristics.

Because your home is a secured debt, Chapter 7 – Bankruptcy can only temporarily stop foreclosure until your case is discharged or your creditor lifts the “automatic stay”. Chapter 13 – Debt Consolidation completely stops foreclosure if back payments are kept current in the payment plan and regular payments are kept current after filing.

No. Chapter 7 – Bankruptcy will eliminate most all unsecured debts but not secured debts such as your home or car. To retain secured assets, payments must be made or modified. In Chapter 13 – Debt Consolidation you pay all or only a portion of your debts.

You must list all creditors at filing except creditors with zero balance. Chapter 7 – Bankruptcy allows you to pay a desired creditor directly if you choose through reaffirmation. Chapter 13 – Debt Consolidation has restrictions on who you pay, how much, and when.

If the lien was not incurred to purchase the asset, was not consensual, and impairs an exemption, it may be removed by lien avoidance techniques.

If mandated by the “Means Test” or if there is enough money left over after monthly living expenses the court may require full or partial payment to your creditors in Chapter 13 – Debt Consolidation. Other reasons are listed on the webpage entitled “Which Chapter is For You”.

All consumer co-signors are protected under Chapter 13 – Debt Consolidation but not under Chapter 7 – Bankruptcy.

No, unless you owe your employer money or stop making timely Chapter 13 – Debt Consolidation payments.

If your bank or credit union is an unsecured creditor, close your account and move to a bank where you owe nothing. Otherwise, at time of filing, your bank could offset or freeze your account.

Yes, immediately when we file your case.

Both Chapter 7 – Bankruptcy and Chapter 13 – Debt Consolidation may cancel unwanted contracts if you discontinue the service and/or return the merchandise.

Yes. We make most creditors stop garnishing wages when your case is filed. This doesn’t apply to current child support payments.

Yes, immediately upon filing.

No, not until you receive a discharge. In Chapter 13 – Debt Consolidation you must get court permission to incur debt over $250, except in emergencies.

Generally, only one trustee hearing appearance is required 30 to 45 days after filing. This is normally a short hearing. Your creditors may be present to ask questions. Our attorney will be present to represent you.

Chapter 7 – Bankruptcy takes about 5 months, although your dischargeable debts are gone the day we file your case. Chapter 13 – Debt Consolidation takes 3 to 5 years to repay debts unless you decide to pay faster.