Bankruptcy Attorney Orange County, Ca - Chapter 7 Layer

Frequently Asked Questions


What Does Filing Bankruptcy Do To My Credit?

What surprises most people when I talk about the effects a bankruptcy is going to have on their credit is the fact that a bankruptcy generally will make your credit score higher than it was prior to the bankruptcy. Most people find this hard to believe and want me to explain how this could possibly happen, when they've been told all their lives that a bankruptcy will ruin your credit and they won't be able to buy anything for at least 10 years. At that point I have to tell them it is likely that everything that they've ever heard about bankruptcy has been a lie. It's been put forth, probably by the credit card companies, to make sure you don't do what you can by law do. Pretend you're a lender and you're trying to decide whether or not you should give a loan to a certain person. You've got person "A" who is 30, 40, 50 thousand dollars in debt and they've got many late payments on their credit report. They've been unable to make ends meet, their debt-to-income ratio is high, and minimum payments are more than they can really afford. Then you have person "B" who doesn't owe anybody any money at all. They have no recent late payments on their credit report and their debt-to-income ratio is fabulous. The only negative for person "B"? Let's say that they filed bankruptcy a year ago. Well is that really a negative? From a lender's perspective it actually makes person "B" a safer bet. Of the two people, they know person "B" is not going to file chapter 7 bankruptcy because they already did! You can only file chapter 7 bankruptcy once every 8 years so person "B", the bankruptcy filer, is a much better risk than person "A".

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.

"Dear Amy and Staff:
We appreciate your understanding, expertise, and professionalism. We thought the bankruptcy process was going to be difficult. You made it very easy as your advertisement says, we were able to keep all our stuff!! Thank you again..."


"Thank you so much for all your help Amy. Your office was very organized and your services friendly and prompt. I would recommend you to anyone. Also, I'd like to thank your staff for all their hard work. So appreciate that."


"As I contemplated the idea of bankruptcy because of my age and health I knew I needed a knowledgeable and caring attorney. I was blessed in finding Amy Spencer. Amy led me through the process stress, care and judgment free. Thank you Amy."


"I was very pleased with the way the case was handled. Thank you so much for everything. "


" Just wanted to thank all of you guys for all the hard work and phone time you spent answering all of my questions. You guys made a real hard (time) bearable. Just wanted to say thanks to all of you."


"I was very pleased with your service and am able to breath much easier!"


"Thank you Amy. You have helped me to keep the smile on my face. I thank you for your help with my troubles and your encouraging words. Now I am in the middle of this new direction and pray that the Lord will guide me. The timing is near and I am watching the sun set on all of this. I am looking forward to my new Beginning. Thank you again."


"Thank you Amy for your encouragement and giving us a new start in life. You put a smile back on our faces."

R. and A.

"Thank you for everything you've done to help us through this past year."

M. and B.

"Thank you for taking the initiative and "making it go away". That 'so called' debt collector/company never sent anything in the mail again. Thank you for whatever you said or did. Blessings to you and Amy."


"Going thru Bankruptcy can be a difficult experience and also traumatic. Amy Spencer Law was very understanding and supportive and guided us through the whole procedure. They were always available and made sure you understand all the Laws and Information regarding Bankruptcy. Even though we know we had no alternative but to file Bankruptcy. Amy Spencer Law treated us with dignity and not as 3rd class citizens. They are not only experts in their field they are also very caring with their clients."

J. and D.

"You have all been there when I needed you - Thank you sooooo much for the weight off my shoulders & piece of mind."


"Thank you so much Amy for your making Bankruptcy as easy step by step process. I appreciate how you and your office staff made me feel at ease. Thanks to your help I was able to keep my stuff and move forward with my life! Bankruptcy is not a scary word when Amy handles your case!"


"Dear Amy-
Thank you so very much for your help with our Bankruptcy. You told us exactly what would happen & that's exactly what happened. I appreciate the credit score info also. Also thank Sherrie for us . She was great! Thank you for our fresh start!"


A little about Costa Mesa...( City of Costa Mesa Website )

The population of Costa Mesa was 109,960 at the 2010 census.
Since its incorporation in 1953, the city has grown from a semi-rural farming community of 16,840 to a primarily suburban and "edge" city with an economy based on retail, commerce, and light manufacturing.

© Copyright Law Offices of Amy Spencer

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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