Bankruptcy filings california
Bankruptcy is the legal process of declaring that you cannot meet the payments towards your debts. There are a number of people who have filed bankruptcy besides using alternatives to keep away from this process. However, filing bankruptcy in California has become difficult after the establishment of the new bankruptcy reforms in 2005. There are a lot of new rules and regulations that have been introduced that made the process complex and also stringent. If you wish to file bankruptcy in California then you can have two options; you either file consumer bankruptcy under Chapter 7 or under Chapter 13.
California Bankruptcy Process
The new bankruptcy laws require the person filing to undergo credit counseling within 6 months of filing bankruptcy irrespective of the chapter under which bankruptcy is being filed. Besides once the bankruptcy is filed the person is required to undergo a financial management course.
Filing bankruptcy under chapter 7:
This is the simplest and the quickest form of bankruptcy. In this type of bankruptcy the trustee would liquefy your assets and pay off the creditors. According to the new bankruptcy reforms you are required to undergo a means test, which would determine whether you are a candidate for Chapter 7 bankruptcy or not.
Besides this you are also required to attend credit counseling before you can file bankruptcy. Also you are required to file any unpaid tax returns within weeks of filing a Chapter 7 bankruptcy. The fee for filing chapter 7 bankruptcies is $299. When you file chapter 7 bankruptcies your creditors are prevented making any sort of collections on the debt. You are required to attend a creditor meeting within 20-40 days of filing the bankruptcy petition. Here the trustee would ask you about your debts and assets. You are required to be attentive in this meeting and provide all the details to the trustees. The creditors have a time period of 60 days after this meeting to persuade the bankruptcy court that you should no be allowed to file bankruptcy.
Filing bankruptcy under chapter 13:
This bankruptcy can be filed by, individuals as well as sole proprietors. By filing under this chapter you can pay off your debts all or partially over a period of 3-5 years. For filing bankruptcy under chapter 13 you are required to have a steady source of income with some disposable income (income that is left after paying the bare necessities of life such as shelter, food and utilities). You are also required to have no more than $1,010,650 in secured debt and $336,900 in unsecured debt.
Filing bankruptcy under Chapter 13 requires you to be accompanied by a proposed payment plan. This plan must provide you for the payment of all "priority claims," such as taxes, in full. The trustee appointed by the court is required to review the plan for flexibility and accuracy. This plan is distributed among the creditors and those who have the rights can object to it. If the plan is approved then you can keep your assets during the payment plan. You are required to make monthly installments to the bankruptcy trustee and then he or she would distribute the amount among the creditors.
The state of California bankruptcy laws
When a person wishes to file bankruptcy in California then the state laws can have an effect on the process. This can be in the form of exemptions, community property and single spouse discharge. The California State laws for bankruptcy allow the debtors to file exemptions found in Code of Civil Procedure ?704 and those of bankruptcy-only exemptions in CCP ?703.140. These exemptions are more or less similar to the federal exemptions.
According to the community property laws any property that is acquired by, a married couple in the state of California is equally owned by, both the spouses unless specified. This property is liable for the debts that are incurred by any of the spouse during the marriage. If only one spouse is filing for bankruptcy then the community property become the estate property.
Taking the help of a bankruptcy attorney
When you wish to file bankruptcy in then it is important that you take the help of a bankruptcy attorney who would be able to advise you on various legal aspects. Some of the attorneys are mentioned below.
Henry Rendler :
He specializes in bankruptcy law and is located in San Jose, California. He restricts his practice to the residents of Santa Clara. He takes up Chapter 7, 11 and 13 bankruptcy cases. You can contact him at Henry G. Rendler, 1550 The Alameda Suite 308; San Jose, CA 95126; phone: 408-293-5112; fax: 408-293-4939; e-mail: Info@rendlerlaw
Hagen & Hagen :
They specialize in dealing with bankruptcy laws and have helped a number of clients in filing bankruptcy successfully. You can contact them at The Law Offices Of Hagen & ; Hagen; 17525 Ventura Boulevard; Suite 201; Encino, California 91316; Phone: (818) 501-6161; Fax: (818) 907-6722.
J.L. Borrie & Associat
They help their clients in dealing with bankruptcy of chapter 7, 11, 12 and 13."> Their attorneys provide one-to-one counseling for all their clients and assess their case thoroughly. You can contact them at 4333 Orange Street, Suite 21; Riverside, CA 92501 (also in Running Springs and San Bernardino); Phone: 951-686-6432; Toll-Free: 877-MYATTYS; Fax: 951-686-6490.
Patrick McMahon :
They specialize in dealing with bankruptcy laws. They provide you free consultation without any obligation of taking their services. You can contact them at Law Offices of Patrick McMahon, San Francisco Bankruptcy Lawyer ; 703 Market Street, Suite 1109, San Francisco, California 94103 ; Telephone: 415.543.9338; Fax: 415.543.9449; Email: patrick@bklawclinic.com.
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