Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, Chapter 13 Bankruptcy
SMITH & GARG, LLC, LONG BEACH BANKRUPTCY ATTORNEYS, LOS ANGELES BANKRUPTCY ATTORNEYS, ORANGE COUNTY BANKRUPTCY LAWYERS, CALIFORNIA BANKRUPTCY LAWYER
Of the Chapter 7, 11, 12, or 13 bankruptcies, Chapter 7 is the most common type of personal bankruptcy filed. As discussed before, a trustee is appointed when this type of bankruptcy is filed, and is responsible for analyzing and determining what the debtors' assets are worth, selling them, and making distributions to the appropriate creditors. In addition, when an individual files for a Chapter 7 bankruptcy, he or she will be allowed certain exemptions which do not have to be included in the list of assets to be sold. Some of these exemptions include jewelry, tools, homesteads, furniture, furnishings, personal clothing, insurance policies, and interests in vehicles, to name a few. Federal exemptions are not mandatory and thus independent states have the option of utilizing their own exemption list, which can vary from state to state. As soon as the filing for bankruptcy has been made, an "automatic stay" immediately goes into effect. This automatic stay essentially ceases the collection process, and prevents creditors from being able to collect money through wage garnishments, or collect property through foreclosures, repossessions, etc.
There are certain circumstances for which a discharge of debts will be denied. For example, if the bankruptcy court discovers that you transferred property prior to filing for bankruptcy in an attempt to defraud creditors, failing to list certain assets or debts when filing for bankruptcy, destroying financial records, or failing to submit certain documents over to the bankruptcy trustee, among other reasons. Conversely, if the court does agree to discharge your personal debts, some of your debts will not be discharged merely by filing bankruptcy such as alimony or child support obligations, educational loans, many taxes, or criminal fines, to name a few.
Chapter 13 Bankruptcies are filed when an individual with regular income has unsecured debts under $269,250 and secured debts under $807,750. Rather than discharging the debts, this is what is called a debt adjustment procedure.
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The debtor files a bankruptcy petition, detailing a list of his or her assets and liabilities along with a statement of financial affairs, as well as a plan for repayment of debts from future income to be earned, over a 3-5 year period of time. A trustee is involved in a Chapter 13 bankruptcy just as in a Chapter 7 bankruptcy, who is responsible for receiving the payments as they come due and distributing to the creditors. As payments are made according to the original plan filed with the bankruptcy petition, the debtor usually will be discharged from the debts, whether he or she has paid them off in full or not. However, there are some debts that have to be paid off in full before being discharged, such as current taxes, criminal penalties, alimony or child support obligations, to name a few.
When it comes time to make the hard decisions as to whether or not to file for Bankruptcy, contact the experienced Long Beach Bankruptcy Attorneys, Orange County Bankruptcy Attorneys, Los Angeles Bankruptcy attorneys, and the experienced California Bankruptcy Attorneys at Smith & Garg. We will work hard to get you immediate relief from your creditors and start to back on the road toward financial recovery. Contact Smith & Garg Today!
Please call Smith & Garg, LLC today at 1-877-517-4275 or complete our Contact Form let us assist you with your bankruptcy.
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