Bankruptcy Attorney Orange County, Ca - Chapter 7 Layer

Frequently Asked Questions


What is bankruptcy?

Bankruptcy is the legal process by which many if not all of a debtor's unsecured debts are discharged. Well, what's a discharge? Discharge means that you no longer owe the debt and that the creditor is forever barred from making any effort to collect the unpaid bill from you. You might also be asking what is an unsecured debt? An unsecured debt is a debt in which the creditor does not hold any collateral. By collateral I mean there's nothing the creditor can repossess. For instance, a credit card that you used to purchase dinner at a restaurant has no collateral. The creditor cannot come back and repossess the dinner out of your stomach if you don't pay your credit card bill. On the other hand, a car loan is a secured debt, meaning if you don't make your car payment the creditor will come and take your car away. It's called a repossession.

I've heard there are new bankruptcy laws. How will they affect me?

On October 17, 2005 a number of new bankruptcy law provisions went into effect which some people still consider "new". For most consumers the changes will be limited to changes in procedures, fees and costs, and limitations on certain exemptions. The new law does not prevent anyone for filing for bankruptcy protection. One provision that could affect you is the assumption that those earning more than the median income for your state could be presumed to have to file under Chapter 13 rather than the simpler Chapter 7. The determination for which chapter you file under is made by the results of a Means Test administered by your attorney.
Another provision of the new law requires filers to attend a class session in Credit Counseling and a session on Money Management. These are normally administered over the phone. A certificate proving you have taken the Credit Counseling class must be filed with your original petition. The costs are currently running about $50 for each session or class.

Is there more than one kind of bankruptcy?

There are two classes of bankruptcy, Chapter 7 (liquidation) and Chapters 11, 12, or 13 (reorganization or debtor in possession). Chapter 7, 13, etc. are references to the sections of the federal code dealing with bankruptcy.
Under Chapter 7 bankruptcy, a consumer or business asks the bankruptcy court to erase (discharge) the debts owed. In exchange for the discharge of debts, the debtor's excess assets or the nonexempt property belonging to the debtor is sold (liquidated), and a bankruptcy trustee distributes the proceeds to creditors.
There are several types of reorganization bankruptcy. Consumers with secured debts under $871,550 and unsecured debts under $269,250 can file for Chapter 13. Family farmers can file for Chapter 12. Consumers with debts in excess of the Chapter 13 debt limits or businesses can file for Chapter 11. Reorganization is complex, time-consuming and should involve an attorney skilled in dealing with the process. In any reorganization bankruptcy, you file a plan with the bankruptcy court proposing how you will repay your creditors. Some debts must be repaid in full; others you pay only a percentage; others aren't paid at all. Some debts you have to pay with interest; some are paid at the beginning of your plan and some at the end.

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R. and A.

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A little about Brea...( City of Brea Website )

The population of Brea, as of the 2010 Census was 39,282.
The city began as a center of crude oil production, was later propelled by citrus production, and is now an important retail center because of the large Brea Mall and the recently redeveloped Brea Downtown. Brea is also known for its extensive public art program which began in 1975 and continues today with over 140 artworks in the collection placed and located throughout the city. Brea's public art program has been used as a model and inspiration for many Public Art programs nationwide.

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Pursuant to the U.S. Bankruptcy Code, we are a Debt Relief Agency, we help people file bankruptcy.

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