California Bankruptcy Lawyer Blog

Fremont Bankruptcy Attorney explains the Chapter 7 bankruptcy process.

There are two principal types of bankruptcy filings for individuals, Chapter 7, which is a liquidation process, and Chapter 13, a reorganization process.

Chapter 7 bankruptcy is a liquidation of assets to be distributed to creditors. After an individual files a petition with the U.S. Bankruptcy Court, a Trustee is then appointed to each Chapter 7 case upon filing the petition with the court. The Trustee liquidates the Debtor(s) non-exempt property to cash and distributes the proceeds to creditors according to the Code's rules. In a Chapter 7 "No Asset" case creditors will not receive anything after the debtor(s) exemptions are set aside. Pending no objections to dischargeability from creditors, the debtor(s) is discharged from liability for most unsecured debts.

Some debts cannot be discharged in bankruptcy. They include:

• Debts for most taxes
• Debts incurred to pay nondischargeable taxes
• Student loan debt
• Domestic support obligations
• Debts for most fines, penalties, forfeitures or criminal obligations
• Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated
• Debts which are not properly listed by the debtor
• Debts for which the debtor has given up the discharge protection by signing a reaffirmation agreement in compliance with the Bankruptcy Code
• Debts owed to certain retirement plans
• Debts that the bankruptcy court has ruled in this case are not discharged

A Chapter 7 bankruptcy is typically placed on a 90-day timeline. After the filing the creditors are entitled to question the debtor in a “341” meeting, named after section of the Bankruptcy code that orders the meeting. Filers must also take a mandatory financial management course or post-bankruptcy course within 45 days of the meeting or the bankruptcy filing can be rejected. Once the deadline for objection to dischargeability has expired, the court will issue an Order of discharge and final decree and the case is closed.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Fremont Bankruptcy Attorney explains the bankruptcy process.

Many people have misconceptions about the bankruptcy process such as How long is the process?; Which assets can be protected?; Which debts are dischargeable?; and How it will affect their credit rating? Here is a thumbnail sketch of each of these issues.

The bankruptcy process is typically speedy for an uncomplicated bankruptcy. From the time of filing the petition to the final discharge is often just a matter of a few months. After the petition is filed, the creditors have the opportunity to ask questions of the debtor in a hearing supervised by the U.S. Bankruptcy Court having jurisdiction. After that process is completed, it is mostly administrative work until the final discharge is granted by the bankruptcy judge.

It used to be that losing your home was a risk in bankruptcy. Depending on our situation, you may be able to keep your home or vehicle by excluding them from the bankruptcy filing. Your bankruptcy attorney can advise you on this issue.

Not all debts are dischargeable in bankruptcy. Tax liens, child support and spousal support, student loans, fines, penalties and debts incurred in criminal activity including driving while intoxicated are often not dischargeable. Other debts may not be dischargeable, depending on the filing status and a bankruptcy lawyer can advise you as to which debts are exempt from bankruptcy.

Your credit rating will mostly likely go down after a bankruptcy filing, but it can begin the restoration process very quickly. Responsible use of credit and using secured credit cards and secured purchases such as car loans are an excellent way to build your credit score without getting deep into debt.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney explains who may be eligible and benefit from a bankruptcy filing.

Bankruptcy used to be a word that struck fear into the hearts of anyone considering it. There was a stigma attached to a bankruptcy filing and there was the fear that the bankruptcy filer would not be able to get credit for years, without paying exorbitant rates of interest. Those days are gone.

While bankruptcy is not something to cavalierly consider, most Americans understand that sometimes economic conditions reach a point where a borrower is drowning in debt, and a bankruptcy filing is the only way he or she can get his or her head above water. During this present economic crisis, thousands of people have lost jobs and watched the value of their principal assets – their homes and retirement plans – plummet in value, leaving them with diminished assets and income, as food and gas prices continue to rise. Many people also have lost their health insurance when they lost their jobs, and are overwhelmed by doctor and hospital bills.

If those situations describe you, then you should consult with a bankruptcy attorney to see if bankruptcy is the best option for you. It is not a decision to make lightly, but in the right circumstances, a Chapter 7 liquidation or a Chapter 13 reorganization filing can give borrowers the breathing room to get back on their feet and get their lives together. A bankruptcy attorney can help you determine whether Chapter 7 or Chapter 13, or another option is best for you.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney discusses the record number of bankruptcies expected in 2009.

Bankruptcy experts are not surprised that the number of Americans filing for bankruptcy protection in 2009 may top 1.4 million, according to a report from the American Bankruptcy Institute. During the first six months of the year, more than 675,000 Americans filed for protection under the bankruptcy code, and the trend shows no signs of abating.

Bankruptcy is often a lagging indicator of economic conditions throughout the economy. Layoffs and workforce hours reductions on top of existing consumer debt which often overwhelms the consumer and forces them to seek bankruptcy protection. This process can take several months to more than a year, depending on the individual financial situations of the borrowers, and is putting increasing pressure on banks who are seeing consumer debt wiped from the books at a rate 36% faster than in 2008.

The weakness in the housing market and the existing credit crunch created by the Wall Street meltdown in 2008 leaves consumers with few places to turn for additional credit or for refinancing options. Bankruptcy protection, either in a Chapter 7 liquidation or Chapter 13 reorganization, is increasingly becoming an option for individuals and couples who would not have considered it just a few years ago

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Chapter 11 Bankruptcy Attorney discusses GM’s Speedy Emergence from Chapter 11 Bankruptcy

Bankruptcy experts are saying that General Motors’ (GM) 40-day stay under the protection of Chapter 11 bankruptcy laws is the fastest emergence from bankruptcy protection for a company of its size in U.S. history. GM beat Chrysler’s record by 2 days.

GM was able to emerge from bankruptcy quicker than anyone expected by creating a new company and transferring all of its high-producing to that company. The remaining “old-GM” assets that were not assumed by the new company will to be sold to pay GM’s creditors.

In order for the new GM to emerge, the United States Government provided GM with $50 billion in U.S. government loans. As a result, The U.S. government holds a 61% controlling interest in the new GM. The Canadian government also has an 11.7% interest in the company, the United Auto Workers Union (UAW) controls a 17.5% and the remainder of the company went to GM bondholders.

The new GM believes it will be able to turn a profit even in the current economic climate given its new leaner structure. Through the restructuring process, GM was able to relieve itself of millions of dollars of under-producing assets, oppressive contracts, and massive debt. The new GM is looking to differentiate itself from other automobile manufacturers by committing to an environmental focus and green technology.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney Talks About Southwest and Frontier Airlines

As a possible sign that the economy is turning a corner, Southwest Airlines made a bid of $113.6 million to buy Frontier Airlines. Frontier Airlines has been operating under Chapter 11 bankruptcy protection since April 2008. The bid is good news for Frontier Airlines because the more money it can raise, the better the chance that the company and all its employees can survive the chapter 11 bankruptcy. Although the purchase may mean the eventual demise of the Frontier name as Southwest absorbs its planes and routes. This move would help Southwest gain market share including busy Chicago.

The real news by the offer is that Frontier already had an offer of $108.8 million but Republic who would have allowed Frontier to keep operating under its own name. When there are multiple bidders then that is a sign that competitors are healthy enough to expand or that there is credit flowing. Either would be a distinct difference from the current news of global slowdowns or lack of credit.

At this time, it is too soon to tell but if companies in bankruptcy can emerge (such as Ford) or be brought (such as Frontier) then bankruptcy will no longer mean one foot in the grave, just an opportunity to relaunch.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Francisco Chapter 11 bankruptcy Attorney Discusses the Sick Fascination with the Chrysler and GM Bankruptcies

There is a sick fascination with the Chrysler and GM chapter 11 bankruptcies. The Chrysler one in particular is of special interest because the US government, including President Obama have taken an active hand in their bankruptcy. The government has put in several billions of dollars in loans and bail out money to ensure that Chrysler survives. President Obama has verbally come out supporting the bankruptcy filing and condemning the creditors. Even foriegners are involved as Fiat is trying to buy part of Chrysler. After 35 days, the Chrysler Bankruptcy has hit a wall. Several creditors have filed legal objections to prevent the bankrupcty to continue. About 300 Chrysler franchise owners have also filed objections to the sale or closing of their dealerships. These objections reflect some of the conflicting interests in the shut down of a major US company. One creditor, Indiana State Pension, has filed an objection because they have about $45 million at stake (out of several billions) which (they believe) are not being treated as well as other less preferred creditors. While this claim is a common one in bankruptcy court, it has caught the interest of public because it has all the makings of a David and Goliath showdown in court. As for the dealerships, they claim that they cost Chrysler nothing because Chrylser does not actually own those cars as the dealers have to pay for them. The Dealerships only help Chrylser by selling its product and closing the dealerships will amount to hundreds of lost jobs. Again, the public is interested because nobody wants to see empty lots and unemployed neighbors.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankrupcty evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.