Irvine Bankruptcy Attorney
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Chapter 7 Bankruptcy Lawyer Service To Orange County & Riverside County
Bankruptcy Lawyer for Orange County, Riverside, Corona, Irvine, Newport Beach, Fountain Valley, Huntington Beach,Costa Mesa, Tustin, Santa Ana
1201 Dove St. Suite 560, Newport Beach, CA 92660 (949)955-3566 | 11801 Pierce Street, Riverside, California 92505 (951)824-6363
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Orange County Bankruptcy Attorney- Newport Beach
Welcome to my website, I am an Orange County bankruptcy attorney. I represent debtors in Chapter 7 bankruptcy cases. Our firm represents debtors in Chapter 7 bankruptcies throughout all of Orange County including Irvine, Newport Beach, Costa Mesa, Fountain Valley, Santa Ana, Huntington Beach, Garden Grove, Westminster and all of Orange County.
Free Consultation with an Orange County Bankruptcy Attorney: 949-955-3566 or toll free 888-973-6639
Bankruptcy attorneys often specialize in a few types of bankruptcies. Some bankruptcy attorneys only handle consumer bankruptcies commonly known as chapter 7 bankruptcy and chapter 13 bankruptcy. Another type of bankruptcy available to consumers is called a chapter 11 bankruptcy. Some bankruptcy attorneys only handle chapter 11 bankruptcies. Chapter 11 bankruptcies are generally used for reorganizing businesses, but are also available to consumers. The primary reason why consumers do not use Chapter 11 is that the cost is too high for a typical consumer.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy allows the debtor to discharge most, if not all, unsecured debts. It is the intent of the bankruptcy code to give a debtor a fresh start. Chapter 7 bankruptcy attorneys often handle other legal matters, usually chapter 13 bankruptcies. The bankruptcy code is federal law and bankruptcies are filed in federal court. State exemptions specify what property is exempt from the bankruptcy estate. A chapter 7 bankruptcy attorney is very familiar with the exemptions and will advise the debtor as to the best way to protect the petitioners assets. In Orange County documents are required to be filed electronically so the debtor is required to only sign two documents. After filing a chapter 7 bankruptcy the debtor gets the benefit of what is called the automatic stay. The debtor may not be contacted by the creditors and civil proceedings against the debtor cannot be started and those pending must stop. Your Orange County bankruptcy attorney insures that notices are sent out to stop pending civil proceedings, including wage garnishments and lawsuits. Your bankruptcy attorney will tell you that a debtor cannot be contacted by bill collectors by phone, mail, in person or any other manner after filing a bankruptcy.
Free Consultation with an Orange County Bankruptcy Attorney: 949-955-3566 or toll free at 888-973-6639
Your Orange County Bankruptcy Attorney Can Protect The Equity In Your Home
You may have heard that a bankruptcy attorney can help you save your home. A Chapter 7 allows you to keep a home with little or no equity. Your Orange County bankruptcy attorney can also help you keep your home when you have a lot of equity, sometimes more than a $100,000.
Your Orange County Bankruptcy Attorney Can Help You Keep Your Assets
A debtor is NOT required to exhaust all assets before filing a Chapter 7 bankruptcy. Often debtors do not contact a bankruptcy attorney until they have exhausted all their funds including pension plans. Pension plans are exempt assets, meaning they are protect in bankruptcy. Pension plans include 401(k), IRAs, Roth IRAs, and other pension plans. Your ordinary every day property is very useful to you, but it has very little market value and your Orange County bankruptcy attorney will exempt your property, so you do not have to sell it.
Speak with an Orange County Bankruptcy Attorney Free Call Us at 949-955-3566 or toll free at 888-973-6639
Newport Beach Bankruptcy Attorney -Chapter 13 Bankruptcy
The Chapter 13 is a repayment plan based on ability to pay. The debtors keeps enough income to live on and the rest is turned over to the trustee to repay debts. Debtors that are living a very stringent life style to catch up, but debtors that cannot live a very stringent life style will struggle. The protected income is enough for food, clothing, the mortgage, utilities, and the cost of operating a car. It does not take into account emergencies. Typically repayment is for 5 years. At the end of the repayment plan, the balance of the debts is discharged. Most debtors only pay back a fraction of the debt owed. Your Orange County bankruptcy attorney will explain in detail what your budget to live on will be.
Newport Beach Bankruptcy Lawyer -Bankruptcy Attorney Analyses
The first thing abankruptcy attorney would do for a debtor is to determine which bankruptcy a debtor can file for. A Chapter 7 allows debtor to discharge all debts, but when the debtor owns a home there may be a problem. Mortgages are secured by a home and cannot be rid of without surrendering the house. The house has a lien and even though the obligation to repay the debt back on the house can be discharged in bankruptcy the lender can still foreclose on the house, because of the lien on the property. When there are two loans on a property in California after foreclosure on house that is underwater the 1st loan obligation goes away, but the 2nd does not. The second loan remains unpaid and the homeowner continues to be liable. Debtors often think that the a bankruptcy attorney can file a bankruptcy to discharge the second loan and the the debtor can keep the house. The intent of bankruptcy was to give debtors a fresh start, a chance to start all over without the burden of heavy debts, but your Orange County bankruptcy attorney cannot get rid of the 2nd in a chapter 7 bankruptcy. Your Orange County bankruptcy attorney would need to know the fair market value of your home and the amount of debt remaining on your home to determine your best options.
The Chapter 13 Bankruptcy Attorney and Your Home
Debtors struggling to keep up with their mortgage payments often hear that bankruptcy is a way to keep their home and once they speak with an Orange County bankruptcy attorney they often find that bankruptcy may not be all they wanted. A bankruptcy attorney can help the debtor keep a home. A bankruptcy attorney can not force a creditor to change the interest rate or other terms of a loan. A Chapter 13 bankruptcy does allow you to catch up with home payments and your Orange County bankruptcy attorney can also make a motion to get rid of junior liens on your property. The bankruptcy attorney is allowed to make such a motion when the 2nd or HELOC is unsecured. Removal of the second loan is contingent on completion of the bankruptcy plan. .
An Orange County Bankruptcy Attorney Can Help You Catch Up With Mortgage Payments
Bankruptcy also does allow a debtor to catch up with mortgage payments in a Chapter 13 bankruptcy. The bankruptcy code requires payment of secures debts first which allows for catching up on a mortgage. A Chapter 13 allows the debtor to catch up on the back mortgage payments, and once caught up the debtor repays the unsecured debt.
An Orange County Bankruptcy Attorney Cannot Make A Home Affordable
Bankruptcy does make not any changes to the mortgage and will not help a debtor when the payment is simply not affordable. Your Orange County bankruptcy attorney will not tell you what ratios are used to determine the ability to afford a home, but lenders use them. A general rule is that the mortgage should not exceed about 31% of the gross income of the debtor. If your mortgage is 40% of gross income you are probably cannot afford it.
An Orange County Bankruptcy Lawyer Can Help You Get Rid Of Your HELOC or 2nd
Another benefit of a Chapter 13 bankruptcy for homeowners is that it allows the debtor a chance to discharge the second loan and other loans on the property with what is called a lien strip. A bankruptcy attorney handling chapter 13 bankruptcies routinely handles these type of motions. The lien strip allows the debtor to remove the lien on unsecured property following the completion of a repayment plan. After the repayment period is over, whatever balances remain unpaid are discharged, and the junior liens are removed.
A second or HELOC can only be removed if the house is not worth more than the first loan. When a house is worth $200,000 and the first is for $200,000, then the second can be recharacterized as unsecured debt and upon completion of the repayment plan the lien is removed. There is no provision for equity appreciation, if the property goes up in value then it is to the benefit of the debtor.
Speak with an Orange County Bankruptcy attorney for free:949-955-3566
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Arnold Hernandez, Orange County Bankruptcy Attorney