Posted by Gurjit Srai In Bankruptcy May 21, 2022 0 Comment

When your debt is out control and you are not able to hold your head above water with regard to your financial stability, your best option may be to file bankruptcy. You will no doubt have numerous questions and concerns. It will be in your best interest to consult with and hire an experienced Central Valley bankruptcy attorney to guide you through the bankruptcy process. However, below are some general answers to frequently asked questions asked by California debtors:

  • What is bankruptcy?

Bankruptcy is a legal proceeding that allows an individual who is in debt and unable to pay his or her bills to get a fresh financial start. The right to file for bankruptcy is provided by federal law. All bankruptcy proceedings are heard and handled in federal court. Once you file for bankruptcy, it immediately brings to a halt all of your creditors from collecting on your debts until you have sorted your debt out according to law.

  • What can bankruptcy do for me?

What and how bankruptcy can specifically do for you depends on various factors and the specific facts of your case. In general, bankruptcy can make it possible for you to:

  • Eliminate the legal obligation to pay most or all of your debts
  • Stop foreclosure on your house
  • Prevent repossession of your vehicle
  • Restore or prevent termination of utility service
  • Allow you to challenge claims of creditors who have committed fraud in attempting to collect debt
  • What does bankruptcy not do or allow?

Although bankruptcy may be the best solution if you are financially strapped, there are certain limitation, such as:

  • Eliminating certain rights of “secured” creditors, including a creditor who has taken a mortgage or other lien on property as collateral for a loan
  • Discharge of types of debts singled out of by the bankruptcy law for special treatment, such as alimony, child support, criminal fines, some taxes
  • Protect cosigners on your debts
  • How often can I file bankruptcy?

You can file for bankruptcy protection as many times as you need it. There is not limit as to how many times you can file, but there are time limits between filing dates.

  • What are the different types of bankruptcy?

There are four types of bankruptcy cases provided under the law:

  • Chapter 7: commonly referred to as “straight” bankruptcy or “liquidation.”
  • Chapter 10:known as “reorganization”, routinely used by businesses 
  • Chapter 12: reserved for family farmers
  • Chapter 13: called “debt adjustment”, requiring debtors to file a plan to pay debts from current income

Call an Experienced Central Valley Bankruptcy Attorney

If you are considering Chapter 7 bankruptcy, it is in your best interest to consult with an experienced bankruptcy attorney to help you learn your legal rights and options, especially with respect to Chapter 7 bankruptcy.

For more information or to schedule a complimentary consultation with Central Valley bankruptcy attorney Gurjit Srai, please call 209-323-5558, or complete our online form.