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!

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.

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.

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 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.

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.

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.

Andrew S. Cho offers free consultations to get the support you need. Reach out to us today by filling out the form on our contact page or calling us.