Bankruptcy Lawyers in Stockton Help with Chapter 7 & Chapter 13 Bankruptcy Cases
There are millions of people who file for bankruptcy every year, people just like you. We understand that certain unforeseen life-changing events can significantly alter your financial situation. This explains why millions of people are seeking help from the Bankruptcy Court. Bankruptcy is a Constitutional right, given to all residents in the United States. Our experienced bankruptcy lawyers in Stockton have worked with thousands of clients that have filed for bankruptcy, and they were successful at providing our clients a Fresh Start and a new financial beginning. We ensure that you understand the ins and outs of your case and that you are not a victim of lender and other agencies scams.
You might already be aware of Chapter 7 and Chapter 13 bankruptcy proceedings. Chapter 7 filing is also sometimes referred to as “Liquidation Bankruptcy”. It is a legal filing that involves discharge of debt through liquidation of certain eligible possessions and assets. The proceeds of the sale of personal property will be used to pay down down owed to creditors. Not all property is eligible, some property is exempt.
Chapter 13 bankruptcy is also known as “reorganization” bankruptcy. This bankruptcy involves individuals who wish to repay creditors their debt at a lower rate. The debt is often reduced and the the filing individual is allowed to keep his property, i.e., vehicle, house, personal belongings, while working to repay the debt with a single consolidated payment.
Upon filing the pleadings with the district court the creditor and collection agency telephone calls to your residence or your place of employment will cease. The filing will trigger what is called an automatic stay, which will prohibit any contact by the creditor or collection agencies. Any creditor who violates this stay will held in contempt of court and attorneys fees and money damages may be awarded against that creditor. Another benefit of a bankruptcy filing is that it allows for protection of your personal and real property including your wages from unsecured debt.
If you are having financial hardship, contact experienced bankruptcy lawyers in Stockton by calling (209) 475-0499 . We offer FREE confidential bankruptcy consultation. Protect your legal rights. Call NOW.
What is Chapter 7 Bankruptcy?
In most Chapter 7 Bankruptcy cases, debtors (the people who file for bankruptcy), are able to get rid of their unsecured debt (e.g. debts like credit cards, personal loans, medical bills (in certain circumstances taxes) ) and keep all their property. For most people all the assets (including homes, cars, retirement accounts, and other personal property) they own are exempt in the bankruptcy proceeding. This means that the assets are protected from seizure by law and cannot be taken by the bankruptcy trustee, liquidated and given to creditors.
Chapter 7 Bankruptcy cases generally proceed very quickly. Chapter 7 is available to individuals, married people filing alone, married people filing together, partnerships and also corporations. Once your bankruptcy case is filed, your creditors, once they are notified of the bankruptcy, must cease any and all collection activities. This means they cannot proceed with: lawsuits, wage garnishments, bank levies, placing liens on your home, calling you on the phone, or any other collection activities.
As with anything, one size does not fit all. You may not qualify due to the types of assets you own, your income being too high, or for a variety of other reasons. There are definitely pit falls to avoid. We highly recommend that you speak to an experienced bankruptcy lawyers in Stockton prior to taking any action on a bankruptcy case.
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy, you will be getting rid of your unsecured debts (discharging your debts) by paying your unsecured creditors a portion of what is owed to them over a repayment period.
Chapter 13 is chosen for a variety of reasons. Some of these reasons include the following:
- Your income may be too high to qualify for a chapter 7 Bankruptcy;
- You may have the kinds of assets which cannot be protected in a chapter 7 bankruptcy;
- You may have the kinds of debts that cannot be discharged in a chapter 7 but may be dischargeable in a chapter 13; or
- You may wish to pay a portion of your debts back to your creditors.
In addition, Chapter 13 can help you do many things. For example it can help you stop a home foreclosure or car repossession by allowing you to make up missed payments over time. You may also, in certain circumstances, use chapter 13 in order to wipe additional mortgages (like a second and third mortgages not a first mortgage) on a home.
Once your bankruptcy case is filed, your creditors, once they are notified of the bankruptcy, must cease any and all collection activities. This means they cannot proceed with: lawsuits, wage garnishments, bank levies, placing liens on your home, calling you on the phone, or any other collection activities.
The foregoing is only a very brief overview of Chapter 13. There are many other ways a Chapter 13 Bankruptcy can benefit you. You should speak to bankruptcy lawyers in Stockton and have them evaluate whether a chapter 7 or chapter 13 Bankruptcy makes the most sense for your particular situation.
As with anything, one size does not fit all. There are definitely traps for the unwary. We highly recommend that you do not rely on this webpage or any other webpage for purposes of bankruptcy planning. You should speak to experienced bankruptcy lawyers in Stockton prior to taking any action on a bankruptcy case. Our bankruptcy attorneys will speak to you for free about your situation.