What is Bankruptcy?
Provided by Law Office of Tim Springer, Fresno, California
Fresno (559) 225-3622, Consulta Gratis (559) 225-3025
NOTE: If you are looking for more extensive information and options regarding the entire bankruptcy process, CLICK HERE and visit our sister site at: www.fresnoforeclosurelawyer.com, or call us at the numbers above.
What is a Bankruptcy?
Generally, bankruptcy is a legal process in Federal Court to have your general unsecured debts forgivin. It is for individuals that are over thier heads in debt, and need a fresh start. We are providing this site to try and answer some basic questions, and educate you a little more on the process. Below you will find some comon questions, and our attempt to answer those. If you have specific questions you should contact an experienced bankruptcy attorney in your area.
Frequently Asked Questions on "What is Bankruptcy"
- Below are questions frequently asked about bankruptcy. The responses are intended to provide you with a general understanding of the bankruptcy process. You should consult an attorney in person before taking any action regarding these matters.
GENERAL BANKRUPTCY QUESTIONS
Does Bankruptcy get rid of all debts?
- Not necessarily. Some examples are alimony, child support, certain property settlement agreements in divorce, certain income tax liabilities, Department of Revenue sales tax liability, Internal Revenue Service pay roll tax liability or trust fund liability, and many student loans. Also, many debts created by fraud, embezzlement, or conversion can not be discharged. (An example of this would getting a large cash advance just before filing. That could be considered fraud.)
If I like a particular credit card, can I not list that company and keep the card?
- You must list ALL debts that have a balance, because all creditors must be treated equally.
What if I pay a card off? Will they let me keep it?
- We cannot speak for the creditors policies. However, our experience is if you pay off one thinking you will be able to keep it, the likelihood is the creditor will still cancel your account. Also, because creditors have to be treated equally, if you pay more than $600 within 90 days of filing the Trustee can and may make them give it back and disperse it to all creditors who file claims in your case.
Will I Be Able to Save my Home by Filing for Personal Bankruptcy?
- One of the big benefits of declaring personal bankruptcy is this: from the moment your Chapter 7 or Chapter 13 bankruptcy is filed with the court, foreclosure actions against you must stop. The foreclosure can be held off while you catch up the payments. However, you must be able to show the court that you CAN make the regular payments from now on, plus an amount to catch up what you are behind to make it work. If you can not make the payments the lender will get relief from the bankruptcy fairley quickly.
Can I transfer my car, boat, collectibles, home, tools, etc. to another person to keep those items out of bankruptcy?
- This is NEVER a good idea. Transferring property to keep it away from creditors, and out of the Bankruptcy can be considered fraud. The transfer can be reversed for 2 years under Bankruptcy Law, and 4 years under California's Fraudulent Transfer Act. It could also be considered a crime, and/or you could lose your discharge of the debt.
Are bounced checks dischargeable in bankruptcy?
- Usually the DEBT is discharged. However, bouncing checks is a crime and bankruptcy does not keep you from being prosecuted if a criminal complaint is filed by the District Attorney.
Is there a difference between Chapter 7 and Chapter 13 as to what debts can be discharged?
- Yes. (Example: It is sometimes possible to get rid of a second mortgage in Chapter 13, but not Chapter 7, depending on the facts) The details as to what can and cannot be in what chapters are more than can be easily listed here, and are specific to your case. If you want to know specifics call for a free consultation.
Will my credit union or bank close my bank accounts if I file bankruptcy?
- Possibly. If a credit union loses money because of the Bankruptcy, they will likely cancel your membership. With some banks there is a risk, if you owe them money, they will clean out, or freeze your account when they find out you filed. The short answer is if you owe them money you should open an account somewhere else.
Will my bankruptcy affect a co-signer on the debt?
- Yes. When the person co-signed they were guaranteeing the debt would be paid by them in the event you do not pay. If they do not file their own Bankruptcy the creditor can and will go after them. Sometimes, in Chapter 13 it is possible to protect them. Call for more information.
May my employer fire me for filing bankruptcy?
- No. In Federal law is the anti-discrimination section of the Bankruptcy Code (11 U.S.C. § 525) that precludes a public or private employer from discriminating against any employee solely because he or she filed for bankruptcy. Employers almost always honor this section and there are normally remedies if they try to violate it.
How long does bankruptcy remain on my credit report and can I obtain credit before that time period runs?
- A bankruptcy can be in your credit report for 10 years. However, this DOES NOT mean you do not have credit any for 10 years. How quickly you recover will be up to you. You have to rebuild your credit. The average debtor is usually back on track in 3 to 5 years. There are creditors that want to give you credit, because they make money giving you credit.
What is credit counseling and must I take it?
- The new Bankruptcy law requires you to do 2 counseling sessions on debtor education. One session before you file, and one after. (Your ticket in and your ticket out) Both are done on the internet, and are not difficult. They can be completed at our office if you do not have internet access. Our office will help you get through them, and it is part of your total fee.
Does your fees include ALL THE FEES I will have to pay??
- Yes. We charge one fee and it includes the attorney's fees, the filing fee for the court, the counseling, and credit reports. You may find cheaper prices quoted. However, when you get there you will likely find out it does not include the court filing fees, ($306 for Chapter 7). Then you will be told to go get your own counseling, (and pay for that yourself) then bring back the certificate. Also to go get your own credit report and bring that back to them.
We have no surprises later. Also, beware of "out of town" companies that quote low prices and make the service sound too good to be true. Ask yourself (logically) if a company 200 or more miles away is going to travel to Fresno to represent you in court. We HIGHLY RECOMMEND that you go to some Bankruptcy Court hearings. Then watch what happens to the poor people that made the mistake of hiring these out of town companies. A simple rule of thumb is if you cannot meet the individual you are hiring IN PERSON, and look them in the eye BEWARE!!
Law Office of Timothy C. Springer
Linea en Español: (559) 225-3025 ● E-Mail Us
4905 N West Avenue, Suite 102
Fresno, CA 93705-0438
Telephone: (559) 225-3622
Map and Directions
| || |
Fowler, CA (559) 834-3213
Merced, CA/ Los Banos, CA (209) 388-9988
Toll Free (877) 776-4529
Central California bankruptcy attorney Timothy C. Springer is a Debt Relief Agency and helps people get debt relief through Chapter 7 and Chapter 13 bankruptcy. We serve communities throughout Central California in Tulare County, Fresno County, Madera County, Mariposa County, Kings County, Merced County, in communities including Fresno, Fowler, Selma, Sanger, Kingsburg, Visalia, Hanford, Madera, Merced, LeMoore Naval Air Station, Los Banos, Oakhurst, Coursegold, and Mariposa.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Copyright by Law Office of Timothy C. Springer. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.