While offering Bankruptcy Services, we are legally are a Federally Recognized & Regulated Debt Relief Agency. Our Legal Fees for Bankruptcy's are fees are Regulated by and Approved by the Federal Bankruptcy Court..
We offer Bankruptcy services for both Personal and Business.
Often, a Personal Bankruptcy includes a business.
If the Bankruptcy is filed on behalf of a company, then it is a business bankruptcy.
If the Bankruptcy is filed on behalf of people who own the company or are shareholders or partners of a company, then it is a personal Bankruptcy with a business.
Personal Bankruptcy - For most people, there are 3 types of personal Bankruptcy filings:
1) Chapter 7. Chapter 7 is a personal liquidation bankrutpcy where most debts are discharged without having to pay them back. This type of Bankruptcy is limited to those who cannot afford to pay their debts based on a formula that considers income, expenses and family size if the debts are primarily consumer debts. This formula is called the means test. If the debts are primarily non-consumer or business debts than the means test does not apply. The attorneys fees for a Chapter 7 Bankruptcy is generally between $1,500-$2,500 for a single or joint filing without a business. This type of Bankruptcy generally takes about 3-4 months to obtain a discharge. Under the current FHA guidelines, it takes 2 years qualify for an FHA home purchase or refinance after a Chapter 7 discharge. If someone is loooking for a fresh start from the damages caused by this economy, this is most often the preferred choice.
2) Chapter 13. Chapter 13 Bankruptcy is a personal bankruptcy where a repayment plan is created that lasts 3-5 years in length and is supervised by a court appointed trustee and the court. This type of Bankruptcy is most often used to save a family home that is in foreclosure. There are both secured debt and unsecured debt limits to qualify for a chapter 13. The Attorneys Fees of a Chapter 13 is set by the Court and is $4,000 for a single or joint filing without a business and $5,000 with a business. Generally, a portion of the fees can be paid over time in the repayment plan. Under the current FHA guildelines it takes 1 year of ontime plan payments to qualify for a new home loan.
3) Chapter 11. Chapter 11 Bankruptcy is most often used by large corporations. However, since the Chapter 7 income limits often disqualify a 2 wage earner family and the Chapter 13 debt limits often disqualify a family with rental property. A Chapter 11 is like a Chapter 13 as a repayment plan is proposed and has to be approved by the Court. However, under a Chapter 11, a trustee is not initially appointed and the attorney must qualify and be approved by the Court. All attorneys fees must be approved by the Court. Chapter 11's have so many variables that there is no fixed or flat fee. However, our firm generally charges a retainer of $5,000 to advise, plan, prepare, and file for a Chapter 11. After the retainer is used, all future fees must be applied for and approved by the Court.
Business Bankruptcies are generally limited to a Chapter 7 liquidation bankruptcy and a Chapter 11 re-organization bankruptcy. In a business Chapter 7 bankruptcy is the all of the assets of the business are liquidated and the business is dissolved and there is no discharge. If the buisness desires to keep operating, then they would need to file a Chapter 11. There is no income or debt qualifications for business bankruptcies.
This Information below is taken from the official website of the United States Bankruptcy Court for the Central District of California.
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1. Why File for Bankruptcy?
a) An individual generally files for bankruptcy in order to obtain one or more of the following benefits: (1) have certain debts discharged completely or sort out which debts are dischargeable from those debts which will still be owed; (2) receive extra time to pay debts; (3) receive a break from creditor calls while debt relief is arranged; (4) have the assistance of a trustee to pursue lawsuits or other claims that the debtor owns so that the money obtained can be used to pay creditors; or (5) Eliminate certain judgment liens if those liens impair an exemption.
b) A business files for bankruptcy to obtain similar benefits, including the possibility of operating the business while debt relief is arranged. A business other than a sole proprietorship is not entitled to receive a discharge of debts in a chapter 7 case.
There are negative consequences of filing for bankruptcy, and these may outweigh the benefits. For example, a potential debtor may need to resolve one debt (such as a mortgage), but if the home does not have any equity, there may not be any benefit to filing for bankruptcy. It is highly recommended that an individual or business owner who is considering filing for bankruptcy consult with a bankruptcy attorney to learn how a bankruptcy may affect its financial situation.
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2. Can I Still File for Bankruptcy Under the New Law?
The new bankruptcy laws went into effect on October 17, 2005. These laws do not prevent a debtor from filing bankruptcy, though the new bankruptcy laws contain some differences.
The main procedural difference is in the information that a debtor must provide to the bankruptcy court in order to open a bankruptcy case and to obtain a discharge.
Other differences include: (1) how long an individual must wait to obtain a discharge if the debtor had a prior bankruptcy; (2) the income level required in order to obtain a discharge in a chapter 7 case; (3) how long the Automatic Stay lasts; or (4) the procedure for reaffirming a debt on an automobile or a credit card.
It is highly recommended that an individual or business owner consult with a bankruptcy attorney to learn how the changes in bankruptcy laws may impact the particular financial situation.
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3. What Does A Debtor Have to Do After Starting a Bankruptcy Case?
After starting a bankruptcy case, a debtor must stay closely involved with all activities in a bankruptcy case until a discharge is received AND the bankruptcy case is closed. In some ways, bankruptcy is like a deal that Congress has made with a debtor. If a debtor follows the bankruptcy rules and meets certain financial tests, a debtor obtains debt relief. But if a debtor does not pay attention to the bankruptcy case and does not follow the bankruptcy rules, rights will be lost, benefits delayed, and if the bankruptcy case is closed without a discharge being entered, a debtor may have to pay extra to reopen the bankruptcy case to achieve the debt relief desired. In some situations a bankruptcy case may be dismissed. Some ways that a debtor must remain involved with the bankruptcy case are:
a) Read all Mail Sent by the Court and Other Parties Related to the Bankruptcy Case – Pay close attention to all information sent by the court because a good way for a debtor to protect its rights is by staying informed about the bankruptcy case. For example:
(1) The court may notify a debtor that certain forms were not filed, and there will be a deadline for filing the forms to avoid dismissal of the case. Generally all information is required to be filed no later than 15 days after a bankruptcy case was opened, and if not filed, the bankruptcy case may be dismissed with an order barring the debtor from filing again for a specific period of time (i.e., 180 days or more).
(2) A creditor may file a lawsuit to have its debt deemed non-dischargeable, and it is imperative that the complaint be answered within thirty (30) days of a summons being issued by the court.
(3) A creditor may file a motion asking the judge to allow the creditor to take action against the debtor. The written notice of motion will indicate the deadline for filing a written response, usually fourteen (14) days before the hearing.
b) Notify the court of any change in mailing address -- If a debtor has a change of mailing address, it is the debtor's responsibility to promptly file a change of address form so that the clerk’s office, trustee, and creditors know where to mail documents to the debtor.
c) Understand the Concept of Due Process for all Parties – Due Process means that all parties must have the opportunity to prepare for the court hearing before the court makes a ruling. To prepare for a court hearing, a party must have time to prepare and review issues so that the party can determine the right action to take or which arguments to address. Bankruptcy court is not like television court programs. It is not appropriate to surprise the judge or surprise the trustee or creditor by showing up at a hearing with new witnesses or new evidence. The court only becomes involved when there are two sides that need a resolution. This means that the court AND the other party must be allowed to prepare for a court hearing. Therefore:
(1) A debtor must be presented with evidence in time to respond with its own evidence; (2) A trustee or creditor must be presented with evidence in time to respond with its own evidence; and (3) The court must be provided with evidence from all parties far enough in advance of a court hearing so that the court can properly review and consider all arguments and evidence.
d) Follow all Deadlines for Filing Documents and Submitting Evidence – When court hearings are scheduled or when the clerk’s office is preparing to take action, a debtor will be sent a notice by the court, the trustee, or a creditor. The notice will clearly state the deadline for completing the action required, such as filing a document with the court, filing a written response to a motion, and/or mailing the response to the trustee or creditor. Therefore, pay close attention to deadlines for filing documents, deadlines for filing evidence to support a legal argument, and making court appearances because there may be serious financial consequences.
(1) If there is a deadline for filing a document or other evidence (and serving it on the opposing party), that deadline is the date the document must be received by the court. If a debtor mails a document to the court, generally allow at least three business days so that it is timely received. The postmark date does not count. Generally, documents and evidence must be filed with the court AND mailed to the other party fourteen (14) days before a hearing.
(2) Judges will generally not allow anyone to argue facts and the law at a hearing if the arguments were not written and timely filed and served on the opposing party.
(3) Following deadlines gives the opposing party confidence that the debtor is involved and is acting responsibly and participating in the process. Communication is a good way to get the opposing party to be patient and work collaboratively.
e) Promptly Communicate With Attorney – If a debtor has an attorney, and the attorney contacts the debtor about a court date or other papers that need to be filed, the debtor should call the attorney immediately. Do not wait until the last minute, as there are court deadlines that must be complied with, and it is not reasonable to expect the attorney to meet the deadline without a debtor’s cooperation and information. Just because a debtor has an attorney does not mean that the court will reset hearing dates or give extra time to submit evidence and file documents. Failure to meet court deadlines or be present at court hearings can result in a bankruptcy case being dismissed or in the court granting a motion in favor of a creditor, EVEN IF A DEBTOR HAS AN ATTORNEY.
f) Attend the Mandatory 341(a) Meeting of Creditors – Within thirty (30) to forty-five (45) days after a bankruptcy case is filed, the debtor must show up at the Office of the United States Trustee so that a trustee and creditors can ask questions about the debtor’s financial situation. This meeting is required under section 341(a) of the Bankruptcy Code and is called a 341(a) Meeting of Creditors. The clerk’s office mails a notice that contains the date, time, and location of the 341(a) Meeting.
g) Attend all Court Hearings – Most court hearings are scheduled because a trustee or creditor filed a motion. If the court sets a hearing date to rule on a motion, the debtor should timely respond to the motion AND attend the hearing, regardless of whether or not the debtor has an attorney.
(1) At a court hearing, the judge generally will explain the ruling to a debtor, and if the debtor has filed a written motion or response, the judge will allow the debtor to state the debtor’s position on the motion.
(2) If a debtor has an attorney, this is an excellent time to talk with the attorney before and after the court hearing. Often a debtor has no defense to the motion. However, attending a court hearing is a good method for understanding the judge’s ruling.
(3) Often a debtor is not represented by an attorney, and therefore the debtor may need to talk with the judge to understand the impact of a ruling. This is important because often a judge’s ruling will be made in a simple order that either “denies” or “grants” a motion, without any other explanation or reasoning. A debtor will NOT be able to obtain an explanation by calling the judge’s staff, calling clerk’s office staff, or writing a letter to the judge.
h) Be Honest – Never hide information from the court or trustee and never be untruthful about details of financial condition. The bankruptcy case trustee, U.S. Trustee, or other parties can ask the court to deny a discharge of debts if a debtor provides false information. This may result in the loss of property and dismissal of a bankruptcy case without a discharge and loss of the bankruptcy case filing fee. The debtor may have transferred or given property to a friend or relative before or after the bankruptcy case was filed, and the court or trustee has the right to examine such transactions. Do not hide this information, as the bankruptcy court process is designed to benefit all creditors in a certain priority and plan for fairness. Sometimes property must be returned to the bankruptcy estate so that it can be distributed in accordance with these rules, and hiding information can be considered bankruptcy fraud and may result in criminal prosecution.
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4. Does Every Debtor Get a Discharge of Every Debt?
A discharge is a court order that forgives a debtor of certain specific debts. The discharge order prohibits a creditor from attempting to collect from a debtor a debt that has been discharged. However, not all debts are dischargeable. Parties can file written requests (adversary complaints) to have the court determine if a debt is dischargeable.
a) Creditor, Trustee, or U.S. Trustee Asks the Court to Determine if There is a Discharge
(1) Some unsecured debts are not dischargeable because Congress has determined they are types of debts that should not be discharged because of public policy reasons. These debts are listed in Section 523 of the Bankruptcy Code and usually require that a debtor prove the debt should not be discharged. Examples are: (A) spousal and child support obligations; (B) certain tax debts; (C) most educational loans; (D) debts related to injuries or death caused by driving while intoxicated; and (E) debts arising from fraudulent conduct.
(2) It is also possible for a debtor to be denied a discharge of all unsecured debts if a debtor has not been honest, forthcoming, or cooperative in the bankruptcy case. These scenarios are listed in Section 727 of the Bankruptcy Code and usually involve the U.S. Trustee, a trustee, or a creditor filing a lawsuit in a chapter 7 bankruptcy case to determine that the debtor should be totally denied a discharge.
(3) Debts that are secured by real or personal property are not dischargeable. For example, a creditor may be able to seize property even after a discharge is granted because the debtor has not kept up with payments. Even though the creditor may not collect on the unsecured portion of the debt, the property can still be foreclosed upon (residence, automobile, etc.).
b) Debtor asks the court to determine if a debt can be discharged -- Some creditors have obtained court judgments, and then filed a “lien” which can be used to sell property of the debtor. In some situations, a debtor may file a motion asking the court to remove such a lien.
5.
5. If I had a Prior Bankruptcy, How Soon Can I get Another Discharge?
If this is not a debtor’s first bankruptcy case and the debtor received a discharge of any debts in a prior case within the last eight years, the debtor may not be entitled to a discharge in the current bankruptcy case. It depends upon the chapter number of the prior bankruptcy case, the chapter number of the current bankruptcy case, and the number of years that elapsed between the date that a prior bankruptcy case was filed and the date that the current bankruptcy case was filed. It is important to consult a bankruptcy attorney and to refer to Section 727(a) and Section 1328(f) of the Bankruptcy Code. General rules:
a) Prior bankruptcy = Chapter 7 or 11, and Current bankruptcy = Chapter 7: 8 years after date that the prior bankruptcy case was filed – Bankruptcy Code Section 727(a)(8) ___________________________________________________________________________________ b) Prior bankruptcy = Chapter 7 Current bankruptcy = Chapter 13: 4 years after date that prior bankruptcy case was filed – Bankruptcy Code Section 1328(f)(1) ___________________________________________________________________________________ c) Prior bankruptcy = Chapter 13 Current bankruptcy = Chapter 7: * No mandatory waiting period if 100% of claims were paid in the prior Chapter 13 bankruptcy – Bankruptcy Code Section 727(a)(9)(A) * No mandatory waiting period if 70% of claims were paid in the prior Chapter 13 bankruptcy and the Chapter 13 Plan was proposed in good faith and was the debtor’s best effort – Bankruptcy Code Section 727(a)(9)(B) * 6 years after date that prior bankruptcy case was filed, if less than 70% (and up to 100%) of claims were not paid in the prior Chapter 13 bankruptcy case – Bankruptcy Code Section 727(a)(9) _____________________________________________________________________________________ d) Prior bankruptcy = Chapter 13 Current bankruptcy = Chapter 13: 2 years after date that the prior bankruptcy case was filed – Bankruptcy Code Section 1328(f)(2)
6.
6. Can I Choose to Keep Property by Entering into a Reaffirmation Agreement?
An individual debtor can choose to keep certain personal property (such as an automobile) by entering into a Reaffirmation Agreement and having the Reaffirmation Agreement approved by the court. A Reaffirmation Agreement turns a debt that would be discharged into a debt that will not be discharged. This is a decision that should rarely be made and should only be done if the creditor is giving up something in exchange, such as a reduction in loan amount or interest. The Reaffirmation Agreement can be entered into after the bankruptcy case is filed, and there are very detailed and specific requirements which must be complied with.
Court Hearing Not Required – It is not necessary for the bankruptcy judge to approve a Reaffirmation Agreement if a debtor is represented by an attorney during negotiations for the Reaffirmation Agreement and the attorney signs all appropriate sections of the Reaffirmation Agreement.
Court Hearing Required – A bankruptcy judge must review a Reaffirmation Agreement during a court hearing if the debtor is not represented by an attorney during negotiations for the Reaffirmation Agreement. The debtor must attend the court hearing so that the bankruptcy judge can ask questions of the debtor and examine the Reaffirmation Agreement and make sure that it is in the best interest of the debtor to approve the Reaffirmation Agreement. The judge may decide to disapprove the Reaffirmation Agreement even if the debtor has signed it.
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7. How Much Does it Cost to File for Bankruptcy?
Filing Fees to Start a Bankruptcy Case must be paid at the time a Bankruptcy Petition Package is filed:
8. What if I Cannot Afford the Fee to File for Bankruptcy?
In some situations, the court may approve a filing fee to be paid in installments or waived completely. Note that if an installment payment plan is approved, the payment schedule must be complied with or the bankruptcy case may be dismissed without the debtor obtaining a discharge of debts.
Chapter 13 Petition Package – In chapter 13 bankruptcy cases, it is generally not allowed to have a filing fee waived or to pay in installments. The purpose of chapter 13 is to keep current with payments, and therefore if the filing fee is not affordable, the court will question a debtor’s ability to succeed in a chapter 13 case.
Chapter 11 Petition Package – Inchapter 11 bankruptcy cases, fee waivers or installment payments usually are not allowed.
Chapter 7 Petition Package - If a debtor files a chapter 7 bankruptcy case and the debtor’s income is less than 150% above the federal H.H.S Poverty Guidelines (which varies depending on your family size), the court may waive the filing fee completely or approve payments in installments. The debtor must make a written request to the court and submit the request at the clerk’s office intake window at the time the bankruptcy petition is filed. The intake staff will contact the judge to whom the bankruptcy case is assigned, and the judge will make a decision as soon as is possible. This may require the debtor to wait at the courthouse for a few hours if the judge is not available right away, or the debtor may have to return on the next day that the court is open. Even if the court does not waive the filing fee, the court may allow a debtor to pay the filing fee in installments.
9.
9. What is the Automatic Stay, and does it Protect a Debtor from all Creditors?
Automatic Stay -- Immediately after a bankruptcy case is filed, an injunction (called the “Automatic Stay”) is generally imposed against certain creditors who want to start or continue taking action against a debtor or the debtor's property. Bankruptcy Code Section 362 discusses the Automatic Stay.
Protection for the Debtor – It is important to read relevant statutes from the Bankruptcy Code and/or to consult with a competent bankruptcy attorney about the Automatic Stay because in some situations there is no Automatic Stay at all, or there is only an Automatic Stay if the debtor obtains a court order which imposes the Automatic Stay. There are many different time frames and deadlines, and creditors (such as child support services) may still take action to collect from a debtor.
Creditors Obtaining Relief From the Automatic Stay -- If a creditor properly files and serves a Motion for Relief from the Automatic Stay, and a bankruptcy judge grants the Motion, the Automatic Stay will either be removed or modified so that the creditor can resume collection efforts against the debtor.
10.
10. Will Filing for Bankruptcy Stop an Eviction?
Depending on the facts, the Automatic Stay may or may not prevent a landlord from evicting a tenant that has filed bankruptcy.
11.
11. What is the Bankruptcy Code and do Other Rules Apply in Bankruptcy Cases?
Bankruptcy Code - The Bankruptcy Code is a collection of statutes that govern the rights and duties of individuals, businesses, trustees, and attorneys that are involved in a bankruptcy case. These statutes will often be cited in a bankruptcy case by parties who are discussing various rights and duties. The Bankruptcy Code is also called “Title 11 of the United States Code” or “11 U.S.C.” . Bankruptcy Procedure- Procedural rules regarding bankruptcy cases are found in the Federal Rules of Bankruptcy Procedure (“FRBP”) and Local Bankruptcy Rules for the Central District of California (LBR). Individual judges may also have their own procedures, forms and instructions.
12.
12. What do the Different Chapter Numbers of the Bankruptcy Code Mean?
The common chapters of the Bankruptcy Code are:
CHAPTER 7 - Chapter 7 refers to a "liquidation" bankruptcy and can be used by an individual to obtain a discharge of many debts without making payments in the future. It may also be used by a business that wishes to liquidate its business assets under the protection of the bankruptcy court.
A trustee is appointed to take control of certain asserts of the debtor and to sell or distribute these assets for the benefit of creditors. A trustee can also recover certain assets that have already been distributed and bring those assets back into the bankruptcy estate.
Creditors generallyhave the right to file “claims” which identify the amount of money owed and the documents supporting the claim. In some situations may be able to file a written request (motion) to the court for an order allowing the creditor to take back a residence, automobile, or other property.
CHAPTER 11 - Chapter 11 is often called the "reorganization chapter," and it allows a corporation, partnership, or individual to reorganize property and debts without liquidating all assets. The basic goal is for a debtor to retain control of property and present a “Plan of Reorganization” for repaying creditors. If the creditors accept the Plan of Reorganization, and the court approves the plan, a debtor is able to reorganize personal, financial, or business affairs.
A trustee may be appointed if a motion is filed with the court and the court agrees that a trustee is needed to manage the affairs of the debtor.
Creditors have the right to file “claims” which identify the amount of money owed and the documents supporting the claim. The can also object to a debtor’s plan proposal, and in some situations file a written request (motion) for an order allowing the creditor to take back a residence, automobile, or other property.
CHAPTER 13 -- Chapter 13 refers to reorganization of debts by an individual who has regular income and debts that are below certain statutory limits. A Chapter 13 debtor proposes a “Chapter 13 Plan” which proposes a repayment schedule. The plan essential identifies details for the debtor to retain control of property, keeping up with current debts, and repay at least some of the past due debts.
A trustee is appointed to monitor activity in the case and report to the court on whether or not the debtor is meeting obligations. If a debtor is not meeting obligations, the trustee or a creditor can ask the court to dismiss the bankruptcy case. If a debtor’s income rises, the trustee or a creditor can ask the court to increase the amounts paid to creditors.
Creditors have the right to file “claims” which identify the amount of money owed and the documents supporting the claim. The can also object to a debtor’s plan proposal, and in some situations file a written request (motion) for an order allowing the creditor to take back a residence, automobile, or other property.
13.
13. Is Credit Counseling different from Personal Financial Management?
An individual debtor must complete TWO DIFFERENT CLASSES to obtain a discharge. The names for these courses are: 1)Credit Counseling; and 2)Personal Financial Management. The courses are different in two ways: (a) When the class must be taken; and (b) What type of individual debtor must take the class. If a bankruptcy case is filed jointly, each spouse must take both classes.
CREDIT COUNSELING, Before Filing For Bankruptcy – The Bankruptcy Code ordinarily requires an individual debtor (not a business debtor) to complete an approved course in Credit Counseling within 180 days before filing a bankruptcy case.
PERSONAL FINANCIAL MANAGEMENT, Very Soon After Filing for Bankruptcy - In order to obtain a discharge of debts, an individual debtor (not a business debtor) must complete an approved course in Personal Financial Management within 45 days after the 341(a) Meeting of Creditors.
The above FAQ's are courtesy of the United States Bankruptcy Court, Central District Website located at www.cacb.uscourts.gov
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We offer Real Estate / Bankruptcy services for the following counties in Southern California: Los Angeles, Orange, Riverside, San Bernardino, San Diego. We offcer personal and business Bankruptcy services that include Chapters 7, 11, 13 personal, business, partnership and corporate bankruptcy. We are located in Huntington Beach, Californa at 7372 Prince Dr. #104, Huntington Beach. We are admitted to practice in all State Courts in California and the United States Central District Court and the United States Central District Bankruptcy Court. Our Real Estate services include the CAR contracts, mediation, arbitration, litigation, purchase and sale agreements, licensing, agency, fiduciary duties, fraud, brokers constructive fraud, RESPA, TILA, mortages, trust deeds, grant deeds. All client contact is conducted by a lawyer, licensed to practice law in California. Attorneys, California, Litigation, Real Estate, Brokers, Brokerage, License, Huntington Beach, Bankruptcy, Civil, Orange County, Federal Court, State Court, Lawyers, Trial, Jury, OC, CA, loan, eviction, trustee, deed, sale, property, house, home, mortgage, purchase, liz pendens, complaint, expunge, court, HB, modification, release, settlement realty, default, notice, fraud, fiduciary, evict, petition, arbitration, mediation, superior court, appeal, deposition, discovery, orange, huntington, newport, beach, santa ana, westminster, long beach, los angeles, free, consultation, representation, fee, agreement, contract, car, nar, realtor, agent, sales, family, DRE, state bar, referral, counsel, foreclosure