Frequently Asked Questions
Cerritos Bankruptcy Lawyer
What is bankruptcy and how does it work?
Bankruptcy is a court based process that allows an individual or corporation to be relieved of some or all of their debts, while keeping many of their assets. It is intended give a person a new financial start. At Financial Recovery Law, the process begins with understanding your unique financial situation and what you want to achieve. We then get to work compiling information on your financial situation that will be presented to the court in the form of a petition, to start the bankruptcy process.
Are there different kinds of bankruptcy?
The main types that apply to individuals are called Chapter 7 and Chapter 13 bankruptcy. An experienced Cerritos bankruptcy attorney can fully brief you on each type and their advantages or disadvantages. In Chapter 7, certain assets will be sold and the proceeds used to pay off creditors. Some debts will simply be discharged by the court. Chapter 13 involves a plan in which you and your creditors agree upon paying back your debts over a specified period of time, usually 3-5 years. This repayment plan is approved by the court as well and after the time period of the plan has elapsed, debts that remain can be discharged by the court.
Will I lose my home and other assets?
Keep in mind that bankruptcy is intended to get a person back on his or her feet. In bankruptcy, therefore, you will generally be able to keep your home, vehicles, bank accounts, retirement accounts, 401k's and other valuables up to a certain amount. Chapters 7 and 13 bankruptcies do operate differently and which one we file on your behalf will depend on what you want to achieve and your current financial situation.
Can bankruptcy do anything about creditor calls or foreclosure?
When you file for either type of bankruptcy, a court action automatically goes into effect that prevents creditors from taking collection actions. The exception to this is a creditor that has been specifically approved to collect by the Bankruptcy Court. On the subject of foreclosure, normally the filing of your bankruptcy petition will either stop or stall the proceedings. We work with our clients to ensure they make an informed decision on the type of bankruptcy they will file and how it can affect foreclosure.
Contact a Cerritos Bankruptcy Lawyer for any questions regarding bankruptcy and gaining a new financial start in life.
