When most people think about declaring bankruptcy, they have numerous questions and concerns. Here are some common inquires my clients have. While the information below is meant to give you some clarity about the bankruptcy process, keep in mind that bankruptcy codes and procedures are very complex. It is wise to retain an experienced law firm, like the Law Offices of Cynthia Gibson, A Professional Law Corporation, to represent you. For further explanations or answers to your bankruptcy questions, contact my offices to schedule a free consultation.
Bankruptcy FAQ
What are the differences between individual Chapter 7 versus Chapter 13?
Chapter 7 bankruptcy is designed to discharge all of your unsecured debt. You must pass a means test in order to qualify for Chapter 7. Chapter 13 bankruptcy is a reorganization of your debts. You make a payment plan to pay back debtors some or all of the money owed over the course of three to five years.
Will I lose my home in bankruptcy?
Not necessarily. Once a bank starts the foreclosure process, you have a 90-day Notice of Default period in which you can take actions to stop the foreclosure proceedings. After 90 days, you will receive a Notice of Trustee Sale, which signifies you have 21 days to prevent the process from carrying on. During either of these time periods you can file for bankruptcy and the foreclosure process will stop. There are ways to file for Chapter 7 or 13 and still keep your house.
What debts cannot be discharged in bankruptcy?
Some of the debts not dischargeable during bankruptcy are:
- Student loans
- Child support payments
- Spousal maintenance payments
- Drunk driving liabilities
- Criminal fines
- Home mortgages
- Debts from fraud
How will bankruptcy affect my credit rating?
Your credit score will drop after declaring bankruptcy and the bankruptcy will be noted in your credit report for up to 10 years. However, there are steps you can take to rebuild your credit right away after filing for bankruptcy.
What are the credit counseling requirements in bankruptcy?
You must complete an initial online credit counseling course before officially filing for bankruptcy. You must also complete a second counseling course within 45 days after the final bankruptcy hearing.
How do I know if I should file for bankruptcy?
- If you are behind on mortgage or credit card payments
- If you are borrowing on one credit card to pay another
- If you are receiving harassing calls from collection agencies
- If you are considering a consolidation loan or a second mortgage to pay off debt
If I am married, can I file for bankruptcy independent of my spouse?
Yes, one spouse can file independent of the other. However, any joint accounts should be separated before you declare bankruptcy so as not to affect your spouse/co-debtor.
How much does bankruptcy cost?
The attorney and court fees for bankruptcy can vary depending on which chapter you are filing, how many creditors are involved and if it is a rush/emergency bankruptcy.
What forms of payment does your office accept?
The Law Offices of Cynthia Gibson accepts cashier's checks, money orders, debit cards, personal checks and cash. My law practice offers flexible payment arrangements. You can start with a deposit, and then make scheduled payments.
Gardena Attorney on Filing Bankruptcy
The Law Offices of Cynthia Gibson provides legal advice and representation for bankruptcy clients in Gardena, Pasadena and Seal Beach, California, and communities throughout Los Angeles County, Orange County, South Bay, San Gabriel Valley and Southern California. Contact lawyer Cynthia Gibson for comprehensive bankruptcy services and to schedule a free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.