Bankruptcy FAQs

When someone is in so much financial distress that it is no longer possible to keep up with mortgage payments, car payments or other everyday expenses, it may be time to consider bankruptcy. Rather than being harassed with calls and letters from those who want to collect, it makes more sense to consult an experienced California bankruptcy lawyer to find out what can be done to get back on a path of financial health.  The legal experts at the Law Offices of Ginger S. Marcos, APC are prepared to answer any questions you may have about filing for bankruptcy and how this will affect your future.

Can I Keep My Car in Bankruptcy?

In the state of California, you may be able to keep your car if you file for either Chapter 7 or Chapter 13 bankruptcy. In Chapter 7 bankruptcy, for the most part it depends upon how much you have paid on the car, how much you owe, and whether you qualify for a vehicle exemption. For Chapter 13 bankruptcy, you can keep your car since you will still be making the payments through a repayment plan.

Can I Keep My House in Bankruptcy?

Whether or not you can keep your house in bankruptcy depends largely on what type of bankruptcy for which you are filing. If you're more than 3 months or so behind on mortgage payments and are threatened with foreclosure and are filing for Chapter 7 bankruptcy, your house will probably be sold. However, if you're filing for Chapter 13 bankruptcy, you can keep your house through a loan modification or repayment plan.

How Do I File Chapter 7 Bankruptcy?

To file Chapter 7 bankruptcy, you must first determine if you're eligible by taking a means test to see if your income is low enough to qualify. If it is, then you can proceed with the bankruptcy paperwork. Hiring a lawyer ensures that the process will be done correctly and that your rights will be defended. In Chapter 7 bankruptcy, you will lose most of your assets, but your debts will be discharged and you can start over on a clean slate.

How Do I File Chapter 13 Bankruptcy?

To file Chapter 13 bankruptcy, you must gather the documentation on your debts and assets and then determine if your income is within the range for filing. If you wish to keep most of your assets and your debts are not so overwhelming that they can be repaid over time, you can file for a reorganization of your debts and a new payment plan. A skilled bankruptcy lawyer can help you file and submit the correct paperwork. A bankruptcy judge will then determine whether your repayment plan is fair at a court hearing. A determination will then be made about how your debts are to be repaid.

Can I Discharge Student Loans?

Typically, student loans cannot be discharged in any type of bankruptcy. However, in some rare cases of what is called "undue hardship", it may be possible to get a student loan discharged. The student must be able to prove that he or she has made a good faith effort to repay the loan, and that he or she is unable to support even a minimal standard of living if forced to repay the loan in full. This is usually difficult to prove but it has worked in some cases.

Can I Discharge Owed Taxes?

It is possible to discharge owed taxes in Chapter 7 bankruptcy if the tax assessment is at least 240 days old or the return was due at least three years before filing for bankruptcy.  The taxpayer must also not be guilty of tax evasion. In Chapter 13 bankruptcy, taxes are generally not dischargeable.

Call to Schedule a Free Consultation With a California Bankruptcy Lawyer Today

If you are considering or have questions about bankruptcy, call to schedule a free consultation with a California bankruptcy lawyer today. The experienced legal professionals at the Law Offices of Ginger S. Marcos, APC understand bankruptcy and will be happy to discuss your circumstances with you to arrive at a workable solution. We serve the cities of Anaheim, Fullerton, Garden Grove, Buena Park and surrounding SoCal communities. Visit our web page at marcoslawfirm.comor give us a call at 949-417-6202 and let us give you the legal guidance you need.