Bankruptcy in Orange County 
 

Thank you for visiting the Orange County Bankruptcy Law Offices of “insert attorney name”. 

Is Bankruptcy the right choice for you?  Our professionals utilize current restructuring and bankruptcy laws to preserve assets and get clients immediate relief, while helping to build a stronger foundation for your future.  Please take a moment and visit our “Why hire us” page to see what makes us a better choice for your needs than the other Bankruptcy attorneys in and around Orange County. 

Bankruptcy Overview

  • Filing for bankruptcy provides you with a fresh start.
  • Grants immediate relief.
  • Bankruptcy prevents foreclosure, repossession and eliminates debts.
  • A plan entered into with the Bankruptcy court
  • You must follow their rules
  • Will get relief from debts
  • Protection from creditors
  • Secured debts allow a creditor to take your home or automobile.
  • Unsecured debts do not allow creditors to make a claim to your assets (i.e. credit cards).
  • Effective in 2005, it is harder to file for discharge of debts Under Chapter 7.
  • Chapter 7 – totally gets rid of debts
  • Chapter 13 – reorganizes debts for individuals or a married couple
  • Chapter 11 – best option for a corporation of business to reorganize debts
 

Some Warning Signs of Trouble Ahead

  • You are spending more than 15% of your income to pay your debts.
  • You are using your credit cards for small purchases when you used to use cash.
  • You do not have a savings account.
  • You are making monthly minimum payments on your credit cards.
  • You are taking money out of your savings accounts each month.
  • You pay your bills late every month.
  • You live paycheck to paycheck.
 

Where to File

  • Bankruptcy Court for Central District of California

    Santa Ana Division

    411 West Fourth Street

    Santa Ana, CA 92701

    714-338-5300 

 

California Bankruptcy Exemptions

  • Exemptions protect your property:
  • Home
  • Vehicle
  • Pension
  • Clothing
 
  • Homestead
  • $75,000 equity
  •  
    • living with one or more non-owner family members
  • $150,000
  •  
    • 65 or older
    • 55 or older – yearly income $15,000 or less
    • 55 or older, married – yearly income $20,000 or less
    • Disabled
  • $50,000
  •  
    • All others
 
  • Income
  •  
    • 75% of earnings
    •  
  • Vehicles
  •  
    • Up to $2,300
    •  
  • Miscellaneous
  •  
    • 100% exempt:
    • Household furnishings
    • Personal items
 

What is Chapter 7 Bankruptcy?

  • Under the Bankruptcy Reform Act of 2005:
  •  
    • Most unsecured debts are eliminated:
    • Medical bills
    • Credit cards
    • Personal loans
 
  • Sometimes referred to as a “Straight Bankruptcy”.
  • Liquidation of your assets.
  • Works best for individuals or a married couple.
  • You can only file for Chapter 7 one time in 8 years.
  • The filing fee is $299.

 

 

  • Secured debts are:
  • Home mortgage
  • Automobile loan
  • Home furnishings – store debts
 
  • Note:  If you want to keep the above property, you must continue to make payments on it.
  •  
    • This property is known as exempt.
    • California exemption laws allow a family to keep a home with $75,000 equity.
 
  • Non-dischargeable debts are:
  •  
    • Child support
    • Student loans
    • Current tax debts
 
  • Means Test
  • Must qualify before filing for Chapter 7
  • Your income will be compared to the median income in Orange County.
  • If it is less, you will qualify for Chapter 7 bankruptcy protection.
  • If it is higher, the court considers your disposable income and unsecured debts.
  • If the amount for the next 5 years is less than $6,000, you can file for Chapter 7 protection.
  • If it is more than $6,000 but less than $10,000, depending on your expenses, you might still be able to file for Chapter 7 protection.
 

What is Chapter 11?

  • Best option for business or corporation to restructure and reorganize.
  • The business can continue as usual; however, it is supervised by the court.
  • Able to break leases and contracts.
 

What is Chapter 13 Bankruptcy?

  • Also known as a Debt Consolidation or Payment Plan – Restructured debt repayment plan.
  • Best option when you want to keep your assets – your home, vehicle.
  • Reorganization of your debts.
  • You have a regular income.
  • You must present the court with a Plan to pay your debts over 3 to 5 year period.
  • A court trustee will take your monthly payment and pay your creditors.
  • While this Plan is in effect, the court will prohibit creditors from contacting you.
  • The Plan is interest free for all unsecured debts.
 

 

What is an Automatic Stay?

  • The Bankruptcy Code protects you.
  • Stops creditors from harassing you – no more collection letters or telephone calls.
  • Stops foreclosure
  • Stops repossession
  • Stops lawsuits
  • Stops your paycheck garnishment
 

Conclusion

Our dedicated attorneys can help you take care of your debts and get you a fresh start to a new and brighter future.  Do not take any chances that will hurt you and your family.  Call the Bankruptcy Law Offices of “insert attorney name” in Orange County.