Oakland - Bankruptcy 101
What is Bankruptcy, Really?
Bankruptcy is simply a way to discharge debt, and get a new financial start.
What’s the Difference Between Chapter 7 and Chapter 13?
There are two types of bankruptcy that are used for individuals - Chapter 7 and Chapter 13.
Chapter 7
Chap 7 generally used under a certain income level (for the most part), which varies by county, and other circumstances. Under Chapter 7, you can discharge virtually all your debt. When I look at a client’s individual case, I’m able to determine just what debts can be discharged.
Chapter 13
Chap 13 is used over a certain amount of income (depending upon the circumstances). Under Chapter 13, you set up a payment plan. I will help you do this. It’s important to look at the kind of debt you have, your income.
When I work with you, I will help you to determine what type of bankruptcy will be appropriate for you.
Can Bankruptcy Help Me Avoid Foreclosure?
For individuals facing foreclosure, you may be able to use a Chapter 13 to stop the sale of your home, in certain circumstances. It’s best to contact my office to set up a free consultation, so that I can take into account your particular situation, and advise you appropriately.
If you do apply, this could also apply to other assets, such as automobiles.
Do the new bankruptcy laws affect my ability to get rid of my debt?
The new bankruptcy laws were simply put in place to prevent fraud. They do put up some more hurdles; but I think as long as you’re working with a licensed member of the State Bar, we can help you through those hurdles.
For example, you’re required to undergo a debtor education course. That’s something my office will arrange for you. We’ll set up an appointment for you to take this course, either over the phone or over the internet.
How Do I Know What to Do, And if Bankruptcy is Right for Me?
I think a lot of people are worried about their home, their worried about their finances, and they want to start the process, and they don’t know how.
So, our office encourages everyone to contact us immediately.
Call us for a free consultation
We do a free consultation of about half an hour—so we’re not going to charge you for coming in to assess your situation, whether you’d qualify for Chapter 7 or Chapter 13.
You’ll be able to walk out of that with a much better idea of what your options are, and what your next steps should be. Give us a call—(510) 836-3618.