What is a Chapter 13 Bankruptcy?

Chapter 13 refers to the chapter of the Bankruptcy Code under which a minority of debtors file. The debtors that file for bankruptcy under Chapter 13 tend to have high incomes, combined with small amounts of debt. Most debtors are able to file for Chapter 7 bankruptcy instead of Chapter 13, and some that do not qualify for Chapter 7 opt for Debt Elimination or Loan Modification services instead of filing for a Chapter 13 bankruptcy. Only those debtors who do not pass the

What is a Chapter 7 Bankruptcy?

Chapter 7 refers to the chapter of the Bankruptcy Code under which most bankruptcies are filed. A Chapter 7 bankruptcy is often called

Do I qualify for a Chapter 7 bankruptcy?

Most people who file for bankruptcy do indeed qualify to file under Chapter 7. If your income is less than the median income for your state, you automatically qualify to file under Chapter 7, and it is likely that your debt will be completely discharged. Even if your income is greater, however, you will still qualify for a Chapter 7 bankruptcy if you have a high amount of debt. Essentially, only those people who have a small amount debt but have a high income will not file under Chapter 7 of the Bankruptcy Code. The specific test to determine whether a debtor qualifies to file under Chapter 7 is called the

What is the

The

What is Exempt Property?

Exempt property are those items that cannot be seized by creditors (or by the bankruptcy trustee), even though you have filed for bankruptcy. Each state has laws that determine which items of property you can keep, and in what amounts. For the state of California, the following assets may be exempted: Appliances, furnishings, clothing and food needed; tools of trade such as materials, instruments, uniforms, books, furnishings and equipment; health aids, and others

Some other assets can be kept if their equity falls below certain limits. Equity is the difference between the value of the property and what is owed to the property. For example, a vehicle valued at $6,000 with a loan of $4,000 has an equity value of $2,000. This category includes homestead, vehicles, jewelry, family heirlooms and some types of trust funds and loans. Although this introduction covers some of the basics, bankruptcy law is complicated. Since each person

What is Debt Elimination?

Payment plans established by debt elimination/negotiation companies usually extend beyond one year. Most credit card companies will sue and begin garnishing wages within one year of a default. Debt elimination/negotiation companies do not promise to stop the lawsuits or garnishments – and they will not stop the lawsuits and garnishments. So, many borrowers find that they will need to file a bankruptcy case to stop the lawsuits and garnishments when it becomes apparent that they cannot settle and pay all of their debts within one year.

If most debts are not settled through debt elimination/negotiation within a few months, creditors can see in borrowers’ history of settling debts. As creditors see a pattern of settling debts in the borrower’s credit report they will demand higher settlement amounts – making less likely that the borrower will be able to reduce the debts as promised by debt settlement/negotiation companies.

A borrower’s credit rating remains depressed for the entire time during which debt settlement/negotiation payments are being made and debts are being settled. Borrowers’ credit only beings to “repair” years after the debt settlement.negotiation payment plans have ended. Thus, many borrowers in debt settlement/negotiation will have “bad” credit for as many as 8 years if they attempt to use debt settlement/negotiation. However, with most bankruptcy filings borrowers’ credit rating can begin improving within months (not years) after the bankruptcy filing.

In addition to having to pay excessive fees – as much as 15% of the total debt amount for some companies – borrowers will receive 1099 forms from each debt settled and be responsible for “forgiveness of indebtedness taxation” on the amount by which they reduce their debts through debt settlement/negotiation. For people filing bankruptcy this is not usually a problem – a bankruptcy filing does not cause forgiveness of indebtedness taxation to arise like debt settlement/negotiation does.

What’s Loan Modification?

Loan Modification is the process of modifying the terms and/or rates of your mortgage in order to make your home more affordable. Loan modification is an option for many people who have undergone a recent hardship, and has saved many people

Where is the Bankruptcy Courthouse for Orange County?

If you need to file bankruptcy and are an Orange County resident, then you will file your bankruptcy at the Santa Ana location of the United States Bankruptcy Court, Central District of California. The address of the Santa Ana Courthouse is: Ronald W. Reagan Federal Building, 411 West Fourth Street Santa Ana, California 92701

Maps and directions from your specific locations can be found here.

Once you make it to the courthouse building, here are some extra directions:

• Courtrooms: Fifth and Sixth floors
• Chapter 7 Trustee meeting room: Third floor, rooms 3-110
• Chapter 13 Trustee meeting room: First floor, rooms 1-154

Where is the Bankruptcy Courthouse for San Diego County?

If you need to file bankruptcy and are a San Diego County resident, then you will file your bankruptcy at San Diego location of the United States Bankruptcy Court, Southern District of California. The address of the San Diego Courthouse is: Jacob Weinberger United States Courthouse, 325 West F Street, San Diego, CA 92101, on the southwest corner of F and Union Streets in downtown San Diego.

Where is the Bankrutpcy Courthouse for Riverside County and San Bernardino County residents?

If you need to file bankruptcy and are a Riverside County or San Bernardino County resident, then you will file your bankruptcy at the Riverside location of the United States Bankruptcy Court, Central District of California. The address of the Riverside courthouse is:

United States Bankruptcy Court – Central District of California
3420 Twelfth Street
Riverside, CA 92501-3819