In Filing For Bankruptcy
A few years back, the United States Congress passed a set of bankruptcy laws for the purpose of permitting individuals and businesses faced with unmanageable financial obligations to gain debt relief. Along with the release, certain types of bankruptcy, referred to as "Chapters", were presented. They can be used by a business, an individual, or a married couple in order to either discharge all their unsecured debt (by Chapter 7) or to permit them to pay off their existing debts over an extended period of time without interest (by Chapter 13). To know more about how to go through with each process, you must call and consult a Rancho Bernardo bankruptcy attorney to provide you with options with respect to your position and possession.
Types Of Debts Not Discharged By Bankruptcy
Chapter 7 case typically does not discharge any of the subsequent debt:
- Cash advances gained in a period of 70 days prior to filing of the petition
- Cash advances more than $750 from all creditors
- Certain taxes
- Child support
- Consumer debt incurred from luxury goods or services incurred within 90 days before filing of the petition
- Consumer debt amounting to more than $500 to a single creditor
- Liability for personal injury derived from DUI
- Matrimonial maintenance
- Student loans
How Much Would Each Option Cost You?
We are confident that you will not find better service for a lower price elsewhere in Rancho Bernardo, California because at Law Offices Of Pamela Kleinkauf lies the exceptionally competitive valuation for the legal assistance they offer. No extra or hidden charges; the fee complements the load of work involved in every unique case.
Considering that this is a make or break case for our client, we do not hand any case off to a Paralegal or another person who does not completely understand the intricacies of bankruptcy law. It is certain that your case will be taken cared of by one of our Rancho Bernardo Bankruptcy Attorneys from start until the conclusion of such undertaking.
Will Anyone Know I Filed Bankruptcy?
While bankruptcy filings are considered a public information in California, it is unlikely anyone you know will find out you filed, unless you tell someone of course.
Documents To Gather Before Bankruptcy Filing
Preparing for filing bankruptcy requires every debtor to compile the set of documents below and complete the Client Questionnaire as honest and detailed as possible. After which, every client must bring them to their first appointment with a bankruptcy attorney at the legal office:
- AUTO INSURANCE DECLARATION PAGE, CURRENT DMV REGISTRATION, CURRENT VALUE PRINTOUT, VEHICLE PURCHASE OR LEASE AGREEMENT (for motor vehicles)
- COPY OF SUMMONS, FIRST PAGE OF FILED COMPLAINT/S (for lawsuits)
- DOCUMENTS PERTINENT TO OTHER SOURCES OF INCOME
- IDENTIFICATION CARDS
- INCOME TAX RETURNS
- PAY SLIPS
- PROFIT AND LOSS STATEMENTS AND MONHTLY BANK STATEMENTS SUPPORTING THEM (for self-employed)
- REAL ESTATE RECORDS
Are There Court Hearings Or Creditor's Meetings?
In most cases, there is no "court" hearing, but there are "creditor's meeting" you need to attend. in both Chapter 7 and Chapter 13 cases, it is commonly held at the trustee's office. You (both husband and wife in joint cases) should attend the meeting---sometimes referred to as a §341 meeting . Else, your case will be ousted.
Creditor's Meeting Schedules
The court itself schedules the creditor's meeting which takes place approximately four weeks after the case is filed. You will be notified by the court through a notice which will accordingly be sent to you at the address you have pointed out in your petition. My law firm will also inform you of the date. During the scheduled date, an attorney will be there to serve as your representative.
Things To Bring During Creditor's Meeting
It is recommended that you show up at least 20 minutes earlier to your hearing time to grant the lawyer enough time to prepare you and to answer or discuss any remaining questions or clarifications you may have in mind. You must bring with you a state issued photo ID and social security card, including the notice sent to you by the court.
Possible Questions Raised At The Meeting
The hearing is comparably informal or spontaneous and the questions in most cases are rather limited. Lasting for more or less five minutes, you can be asked regarding anything relevant to bankruptcy, or be asked to verify that the information you have on the papers which were filed is correct and to advise of any changes.
Some of the prevailing questions asked by the trustee are:
- Do you foresee to inherit money in the near future?
- Do you own a home?
- Do you possess the right to sue anyone for physical injury?
- Have you made a list of all your debts and assets?
- Have you transferred any property?
In a Chapter 13 case, the hearing lasts about 10 minutes. Added to the questions asked in most Chapter 7 cases, the trustee will also raise inquiries to double-check that you can afford your Chapter 13 payment and that you can make your best efforts to repay your creditors through it.
Trustee: Who Is, What Does
In a Chapter 7 bankruptcy case, the Trustee is the court appointed official who executes two primary roles:
- he verifies one's eligibility for Chapter 7, including the accuracy of one's schedules, as signed under oath and filed with the court
- if the trustee locates any assets that are unprotected by state or federal exemptions, he is allowed and thereby authorized to sell them and distribute the proceeds of that sale to your creditors; but liquidation seldom happens.
In a Chapter 13 bankruptcy case, it is to be noted that the trustee is the court appointed official who:
- reexamines your proposed repayment arrangement
- makes recommendations to the court in relation to the feasibility of that plan
- distributes the payments to your creditors as agreed upon.
After The §341 Hearing...
At the conclusion of your hearing in a Chapter 7 case, there are still things which you need to do and adhere to. Infrequently, the bankruptcy trustee will request supplementary information from you. Aside from that, you will be obliged to comply promptly and furnish honestly every requested material.
In either Chapter 7 or Chapter 13, you should accomplish a Financial Management Course (FMC) before you can be issued with a discharge order. The course must be conducted by qualified and experienced personnel---who must use learning materials and teaching methodologies devised to assist debtors in appreciating and perceiving personal financial management---and be administered at facilities stationed in reasonably conducive venues, if not via internet and/or by the telephone. It is good to note that the FMC is run by a non-profit budget and credit counseling agency authorized by the United States Trustee.
Not every lender necessitates reaffirmation agreement. However, it is absolutely crucial that you review all correspondence---received from our office proposing to confirm certain secured items such as your house, car or household goods---immediately. When your case has come to conclusion, you may precede your rights to reaffirm certain debts.
Considering you have met all the specified requirements, you will then receive a discharge order---the official court order relieving you of your obligation to pay your bills---from the bankruptcy court approximately 60 - 90 days after the hearing.
In a Chapter 13 bankruptcy situation, it is different: the discharge order---which needs to be kept safely---is issued upon your successful completion of the repayment plan. You will need this official document to help re-establish credit in the future.
Importance Of Discharge Order
The discharge order may be taken as a proof of a new beginning as it is the official and legal document absolving you of your pre-bankruptcy burdens. When your bankruptcy case is completed, you may want to start reconstructing your credit and credibility. When your bankruptcy proceedings will have come to conclusion and you want to apply for credit after, the lender may request a copy of such document. That explains why it is advised that you secure it, just enough to safe keep it while making it still accessible for you alone.
How To Reconstruct Credit After Bankruptcy?
You should know the details about this because it can provide you ease in dealing things after bankruptcy. Understanding how this legal option impacts your credit score after completion is crucial.
Whenever you call at the Law Offices Of Pamela Kleinkauf, you get to speak with a legal professional. Our attorney can provide an answer or solution to every question or problem you have. So call us right now to learn further about how bankruptcy could help you discharge all your debts and attain debt relief.