Frequently Asked Questions
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What Can Bankruptcy Do for Me?
With debt, there is a legal obligation to pay, but in the case of bankruptcy, the obligation may be eliminated. The Law Office of Andrew S. Cho is prepared to help you get your debt “discharged,” a legal term that refers to obtaining a fresh financial start!
What Does the Act of Filing Bankruptcy Actually Do?
Filing for bankruptcy here in the Anaheim area can eliminate certain rights of “secured” creditors. A “secured” creditor has taken a mortgage or other lien on property as collateral for a loan. Some examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. The Law Office of Andrew S. Cho can help you obtain the best case scenario in the bankruptcy process.
How Often Can a Person File Bankruptcy?
You cannot receive a discharge in a Chapter 7 case if you’ve received a discharge under a Chapter 7 case filed in the last eight years or a Chapter 13 filed in the last six years. You cannot receive a discharge in a Chapter 13 case if you received a discharge under a Chapter 7 case filed in the last four years or a Chapter 13 filed in the last two years.
Is California Chapter 7 (Straight Bankruptcy) Bankruptcy Right for Me?
In the case of a bankruptcy case under chapter 7, you would simply file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (or, in legal terms, discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep. It’s important to note: in most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors. The Law Office of Andrew S. Cho in Anaheim can help you to determine whether bankruptcy is the right option for you. Should you decide to opt-in, we will help you to successfully navigate the entire bankruptcy process.
Should I Consider Chapter 13 Bankruptcy?
In a chapter 13 case, you file a “plan” showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property that you would not otherwise be able to maintain. This is especially true in the case of your home and car, which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors.
In California, What Property Can I Keep In Filing Bankruptcy with the Law Office of Andrew S. Cho?
In a chapter 7 case, you can keep all property which the law says is “exempt” from the claims of creditors. California exemptions provides a list of the exemptions available to residents. In determining whether the property is exempt, you must keep a few things in mind. First, the value of the property in question is not the amount you paid for it, but what it is worth now. Take, for example, the case of furniture and cars. These items may be a lot less than what you paid or what it would cost to buy a replacement. We’ll also only need to look at your actual equity in any property. This means that you count your exemptions against the full value minus any money that you owe on mortgages or liens.
What Will Happen to My Home and Car If I File Bankruptcy Here in Anaheim?
In the majority of cases, you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. The Law Office of Andrew S. Cho is prepared to ensure you obtain the best case scenario in your bankruptcy filing.
Can I Own Anything After Filing for Bankruptcy?
Yes, contrary to popular belief, you can. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after your bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt. You can also keep any property covered by California bankruptcy exemptions through the bankruptcy.