Rancho Cucamonga California Bankruptcy Firm
Rodrigo Law Firm
10390 Commerce Center Dr. Suite C130
Rancho Cucamonga, CA 91730
Phone: 909-212-0320
Fax: 909-212-0319
Rodrigo Law Firm's Websites:
www.rodrigolawfirm.com
www.ranchocucamongachapter7lawyer.com
www.ranchocucamongachapter13lawyer.com
www.ranchocucamongaprobatelawyer.com
Counties Served:
Areas of Practice:
Bankruptcy
Probate
Wills And Trusts
We represent clients in Chapter 7 and Chapter 13 Bankruptcy cases. No two cases are identical. Please contact us today for a free initial consultation to speak to an experienced Bankruptcy attorney regarding your unique case and circumstances.
What Is Bankruptcy?
Bankruptcy is a legal proceeding in which a qualified person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops (“Automatic Stay”) all of your creditors from seeking to collect debts from you, at least until your debts are sorted out, according to the law.
A decision to file for bankruptcy should be only made after consulting with an experienced bankruptcy attorney to determine the best way to deal with your financial problems.
There have been many news reports suggesting that changes to the bankruptcy law passed by Congress in 2005 prevent many individuals from filing bankruptcy. It is true that these changes have made the process more complicated, but it may not be true that you cannot file bankruptcy. Let the experienced attorneys at Rodrigo Law Firm will help you navigate through the new laws and help you get a fresh start at life.
What Can Bankruptcy Do?
Bankruptcy may make it possible to:
• Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts. It is designed to give you a fresh financial start.
• Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)
• Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
• Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
• Restore or prevent termination of utility service.
• Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.
Bankruptcy Cannot
Bankruptcy cannot cure every financial problem. In bankruptcy, it is usually not possible to:
• Eliminate certain rights of “secured” creditors. A creditor is “secured” if it has taken a mortgage or other lien on property as collateral for a loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money on the debt if you decide to give back the property. But you generally cannot keep secured property unless you continue to pay the debt. However, under certain circumstances, you may be allowed to eliminate or strip the second and third mortgages from residential properties. Please consult with an experienced attorney to find out your rights.
• Discharge types of debts singled out by the bankruptcy law for special treatment, such as, child support, alimony, most student loans, court restitution orders, criminal fines, and most taxes.
• Protect cosigners on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.
• Discharge debts that arise after bankruptcy has been filed.
Types of Bankruptcy Cases
There are four types of bankruptcy cases provided under the law:
• Chapter 7 is known as “straight” or “total liquidation” bankruptcy. It requires an debtor to give up assets that are not “exempt” under state and/or federal law, for the benefit of the creditors. Generally, debtors who file chapter 7 keep all of their property, except property which is un-exempted or property that is subject to a lien which they cannot afford or want to pay.
• Chapter 11, known as “reorganization,” is used by businesses and a few individuals whose debts are very large.
• Chapter 12 is reserved for family farmers and fishermen.
• Chapter 13 is a type of “reorganization” used by individuals to pay all or a portion of their debts over a period of years using their current disposable income.
The experienced attorneys at Rodrigo Law Firm can assist you in choosing the right type of Bankruptcy case for you.
Creditors are subject to state law provisions incorporated into bankruptcy cases. If a bankruptcy court lifts the automatic stay and permits a specific creditor to seize and liquidate property subject to a lien, creditors must obey all state law limitations on collection practices. For more information, see legal assistance for debtors. Also, all statutory provisions depend on conformity with the prohibition against fraudulent conversions creating exempt property.
