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Bankruptcy

Bankruptcy Lawyer Helping to Give You a New Start

California Personal Bankruptcy Lawyers

Unfortunately, the fall-out from the current economic crisis is unlikely to end any time soon. Many homeowners face difficult decisions regarding bankruptcy and curbing spending.

At the Law Office of Dennis M. Schuster we provide legal advice and representation in matters related to Chapter 7 Bankruptcies. Contact us today to schedule a free initial consultation. 

Information

Did you know that the right to bankruptcy is a constitutional right? It is also complex body of law, with certain state-by-state variances, which needs the assistance of an experienced advocate to navigate it safely and efficiently.

Chapter 7 Bankruptcies $1800.00!

Specializing for nearly three decades in:
divorce, legal separationpaternity actions, domestic violence law, civil harassment, child custodychild support, spousal support, guardianship, and conservatorships.

If you are trapped in a cycle of debt and do not know how to get out, do not let intimidation and harassment from creditors stop you from learning how to make a fresh start. Discharge in the bankruptcy sense refers to clearing the debtor’s late of all, or most, past debts. Although many people expect that filing for bankruptcy will wipe out all of their debts, that is not always the case. Bankruptcy only discharges certain debts. The availability of discharge depends on the type of bankruptcy proceeding involved, who the debtor is and what type of debts the debtor has. An experienced bankruptcy attorney can advise clients abut which debts will be discharged by a Chapter 7 bankruptcy and which debts will remain.

A large part of the service that we provide our clients is education. We believe that knowledge is crucial to your ability to make decisions that will give you peace of mind.

Great Service

Our friendly staff answers the phones five days a week and every client receives the personal attention he/she deserves.

California Bankruptcy FAQ’s

Most of these Frequently Asked Questions (FAQ’s) are general to bankruptcy across the country. Some of the answers will be specific to California bankruptcy laws. You should always consult with a lawyer in your area to properly assess your personal situation:

Q: What is the automatic stay?

A: This is an injunction that goes into effect automatically upon the filing of a bankruptcy. It strictly prohibits the commencement or continuation of any acts to collect on a debt that arose prior to filing the bankruptcy. This includes enforcement of judgments, creating or perfecting liens, and many other actions. (It does not apply to collecting alimony maintenance and support).

Q: Does the automatic stay always apply when a bankruptcy case is filed, and if so, for how long?

A: Generally, the automatic stay goes into effect immediately upon filing your case and against acts taken towards you personally until you receive your discharge. Stays against actions towards property you own may last longer or shorter depending on what happens to that property during your case (e.g. it is sold by the Trustee or not, etc.). Note: For cases filed on or after October 17, 2005, there are several limits to the length of the automatic stay: 1. If you had a prior bankruptcy case dismissed under any chapter within one year prior to the filing of your present case, the automatic stay will terminate 30 days after your new case is filed, unless you obtain a court order extending it, for cause and a showing of good faith as to why the prior case was dismissed. 2. If you had more than one prior bankruptcy case dismissed under any chapter within one year prior to the filing of your present case, the automatic stay does not go into effect at all unless and until the court orders it into effect, after a noticed hearing. There are other new limitations on the automatic stay, but you should check with your attorney as to whether they will affect you.

Q: Is it too late to file bankruptcy if I’m being sued or already have a judgment against me?

A: No. It’s almost never too late to file bankruptcy. Assuming that it is a dischargeable debt (meaning one that isn’t incurred through fraud, or a domestic support obligation, or one of the others Congress has excluded from discharge), you can still get rid of the debt even if a creditor has filed a lawsuit against you and gotten a judgment. You can even get rid of the debt if they have a lien against your property (although the lien will remain against the property unless you are able to remove it during the bankruptcy proceeding–see below).

Q: Where Does My Case Get Filed?

A: Your case is filed in the District where you have resided or have your domicile (or for a business, its principal place of business) for the greater part of the 180 day period prior to the date your case is filed.

Q: What does it mean to bankrupt or discharge a debt?

A: Many people refer to getting rid of their debts in bankruptcy as “bankrupting” the debt. They often ask “can I bankrupt this debt?” That is incorrect terminology. The legal term for this is “discharge”. What happens in bankruptcy (assuming you are successful) is that your legal obligation to pay on your debt will be discharged. Debts are never technically eliminated. They still exist after a bankruptcy, but you no longer have the legal obligation to pay on the ones that are discharged (or, bankrupted if you prefer).

Q: What are exemptions?

A: Exemptions are protected allowances for the value in certain assets. For example, a homestead exemption protects the equity you have in your home, up to a certain value. All States have different exemption laws which protect the value in certain assets. You need to check with a qualified bankruptcy attorney regarding what exemptions you are entitled to when you file your case. Which State’s laws you use depends on where your domicile was located for the 2 years prior to commencing your bankruptcy case (more on exemptions).

Q: Can I pick and choose who to list in my bankruptcy case?

A: Absolutely not. I don’t know where people get this idea. You must list all your assets and all your debts in ANY chapter of bankruptcy. You may voluntarily repay anybody you want after your case is concluded (and you are required to repay any debts that are not discharged), but you are still required to list all your creditors.

Q: Can I transfer assets out of my name into someone else’s before filing bankruptcy?

A: Not unless they are sold for “reasonably equivalent value”. Otherwise it can be recovered as a Fraudulent Transfer.

Q: Can you be fired or denied employment because of a bankruptcy?

A: No. While an employer can usually find some reason to fire anyone, they cannot use bankruptcy as a basis for doing so. This is set forth in Section 525 of the Bankruptcy Code.