ABOUT ME
I strive to give the best service to my clients
O wad some Pow'r the giftie gie us To see ourselves as others see us!
— Robert Burns, 1759-1796
A word is dead when it is said, some say. I say it just begins to live that day.
He who blesses his neighbor in a loud voice in the morning, it will later be thought a curse.
Mistakes are the portals of discovery.
The palest ink is better than the best memory.
Nobody ever gossips about other people's secret virtues.
— Bertrand Russell, British philosopher
The bisy larke, messenger of day.
(Daylight Savings Time begins today)
CHAPTER 7
Wipe out your debts
On October 17, 2005, the bankruptcy law changed. Since then, many clients have told us they
thought the bankruptcy law ended then and that they would not be able to file anymore. This
is not true. Most people can still file Chapter 7 bankruptcy and wipe out their
debts. It is a little harder now because there are more procedural requirements under the
new law, but most people can still qualify for bankruptcy if they are swamped with high interest
credit card debt.
Frequently Asked Questions
What is a Chapter 7 Bankruptcy?
A Chapter 7 Bankruptcy is a "liquidation of debts". The Debtor (that's you) receives a discharge a
court order stating that you no longer have to pay your creditors--usually within four months. In
the vast majority of cases Chapter 7 will give you a very quick "fresh start".
Will my creditors stop harassing me?
Yes, absolutely! By law, all actions against a Debtor must case once the documents are filed with
the court. Creditors cannot initiate or continue any lawsuits, wage garnishments, or even telephone
calls demanding payment.
Will my spouse be affected?
Not directly. However, California is a community property state, so it is generally advisable to
file jointly with your spouse, as both husband and wife may be deemed liable for the other's debts.
Ask Jennifer more direct questions on this topic when you meet with her.
Who will know that I filed for bankruptcy?
Bankruptcy filings are public records. However, under normal circumstances, no one will know that
you went bankrupt, unless they were specifically searching the court files for your personal
information.
How often can I file for a Chapter 7 Bankruptcy?
You may file for (and receive a discharge in) a Chapter 7 Bankruptcy case once every 8 years. If
you have received a discharge in another chapter of bankruptcy within the last several years this
might also affect your eligibility to receive a discharge in a Chapter 7 Bankruptcy.
Isn't consolidation better for my credit than Bankruptcy?
In most cases, consolidation is not better for your credit. Chapter 7 will cost you less money and
you will rebuild your credit rating faster than if you had tried to consolidate. Be cautious if you
are trying to consolidate many "non-profit" credit counseling groups engage in fraud against
financially desperate people. i.e., they may take your money and do nothing on your behalf.
Can I keep my credit cards?
Whether a Debtor keeps credit cards after filing for Bankruptcy is up to the credit card company.
But in most cases, even if you have a zero balance, the credit card company will cancel your
charging privileges.
Can I get more credit after filing for Bankruptcy?
Yes! Usually you will qualify to purchase a house within about two years after having filed for
bankruptcy. You should be able to obtain credit cards shortly after having filed for a Chapter 7
Bankruptcy. Only you can decide if obtaining further credit cards is an advisable course of action.
Will I lose property by filing a Chapter 7?
In almost all cases the anwer is "No!" Almost all property you have will be considered EXEMPT
(untouchable by the court and/or creditors). Secured property (homes, cars, etc.) with loans
against them will be exempt and can be retained SO LONG AS YOU ARE CURRENT AND KEEP CURRENT ON YOUR
MONTHLY PAYMENTS.
Do I have to go to Court?
You are required to appear once at a civil hearing, which will be held 20 to 40 days after the date
of filing your petition. However, you will not be in a courtroom and you will not see a judge. The
attorney, Jennifer Aragon, will be present with you while a court trustee asks you a few simple
questions. You do not have to face this alone!
CHAPTER 13
Restructure your debts
A Chapter 13 bankruptcy allows you to restructure your debts so that you can begin rebuilding
your credit and regaining financial solvency. I will evaluate your case and determine whether
Chapter 13 bankruptcy is appropriate in your case.
Chapter 13 is designed to allow consumer debtors to repay only the amount of unsecured debt that
they can reasonably afford to repay over a three to five year term. Chapter 13 may be appropriate if
you do not qualify for Chapter 7 bankruptcy, or if you owe arrearages on a mortgage and would like
to keep your home, or if you have a small business and need to restructure your business debt.
Chapter 13 bankruptcy is not available to corporations or limited liability companies.
One important advantage of Chapter 13 bankruptcy is that, in some circumstances it is possible to
"lienstrip" a second mortgage or home equity line of credit if the value of your house has declined
so that your home is worth less than you owe on the first mortgage. When a second lien is stripped,
the lien is included as unsecured debt in you Chapter 13 case, so that if you make it through a
three to five year repayment plan the balance of your unsecured debt (including the "stripped" lien)
is discharged.
If you decide to proceed with a Chapter 13 bankruptcy, I will handle your bankruptcy case from start to finish.
Remember, we are here to help you out!
FAMOUS DEBTORS
Debt problems? You're not the only one!
