Bankruptcy

Sometimes people accumulate personal debts beyond their ability to pay and the only solution is to declare bankruptcy. Filing for bankruptcy can serve as a means to eliminate your debt, retain your valuable belongings, give you the opportunity to rebuild your credit, and more. Kolacia Law has a track record of success in this area of expertise and we can provide you with the effective legal services you need and deserve. Our legal team will assist you with all the confusing and lengthy paperwork, strongly represent your interests at any hearings, and inform you of your best options for moving forward.

Kolacia Law Firm

Whether it is a Chapter 7 or Chapter 13 Bankruptcy, Kolacia Law can handle your needs if you find yourself in trouble with mounting debts. Give us a call today to schedule your free consultation at 714-725-7072.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, commonly referred to as straight or liquidation bankruptcy, can clear away many varieties of unsecured debts. If you’re behind on paying bills and can’t afford monthly payments along with your other living expenses, filing Chapter 7 may be utilized to reset your finances. This type of filing is known to be the most drastic method of settling financial problems due to liquidation and/or selling the debtor’s non-exempt property and possessions and distributing the proceeds to the creditors.

Upon filing Chapter 7 bankruptcy, a person places their assets under the protection of the court and submits a Statement of Financial Affairs describing their background and financial history. Assets include real property (such as real estate), personal property (household goods, clothing, retirement funds, cash, etc.), and all other assets. Liabilities include priority debts (taxes), secured creditors (auto dealers, home mortgages, etc.), and unsecured creditors (credit cards).

Following this action, the court automatically places a temporary hold on your current debts. Creditors no longer attempt to collect payments, garnish wages, foreclose your home, repossess property, execute bank levies, evict you or turn off your utilities. Due to this, the court is permitted to take legal possession of your property.

Debts that Chapter 7 bankruptcy will release include:

Credit card debt
Medical debt
Many judgments against you
Personal unsecured loans

If you find yourself going through this process, having a great bankruptcy lawyer by your side can provide sound legal counsel during this critical time in your life. With sensible assistance and expertise on bankruptcy law our attorneys can offer more insight regarding the complex ordinances that govern bankruptcies.

What is Chapter 13 Bankruptcy?

Persons who have significant income or want to keep valuable property often turn to Chapter 13 bankruptcy for help. Chapter 13 allows debtors a chance to rearrange and oftentimes greatly reduce their debt, while avoiding home foreclosure, repossession, and other harmful creditor actions. When filing Chapter 13 bankruptcy, you need regular income to qualify. Instead of having your debt forgiven, you end up restructuring your debt using a three to five year repayment plan instead. If your income exceeds the median level in your state, you’ll repay your debts over five years. If your income is below the median, repayment will take place over three years.

Here are some things to consider if you are thinking about filing for Chapter 13.

Regular income is required.
Unsecured debts, like those from unsecured credit cards and personal loans, can’t exceed $394,725.
You may not qualify if you’ve had a bankruptcy dismissed within 180 days for a failure to appear in or comply with the bankruptcy court.
You must provide up-to-date tax returns and payments.

Our team of bankruptcy lawyers at Kolacia Law are experts at guiding people through Chapter 13 bankruptcy. We are here to help you seek debt relief and assist you every step of the way!

How Often Can You File Chapter 7 and Chapter 13 Bankruptcy?

In California, the waiting period to file Chapter 7 again is eight years and this period starts from the original filing date. If you filed for Chapter 7 bankruptcy and are planning on filing for Chapter 13, you will have to wait four years to file for your second bankruptcy.

If you are looking to file another Chapter 13 bankruptcy, you will have a waiting period of two years. It’s important to note, your waiting period starts on the filing date of your previous bankruptcy. If you are planning to file for Chapter 7 bankruptcy after having previously filed for Chapter 13, you will have a waiting period of six years.

Our trusted law firm has extensive experience helping people through Chapter 7 and Chapter 13 bankruptcy. We have witnessed how bankruptcy protections can provide an opportunity for a fresh start. Give us a call at 714-725-7072 so we can help you explore your debt relief options.

If you are unable to pay your mortgage or stay on top of monthly payments, now is the time to make informed decisions about your financial future. Your current situation may seem hopeless, but we are committed to helping you navigate this tough time. Our Kolacia Law bankruptcy attorneys have helped countless people navigate the process of discharging or lessening their debt, and now we would like to assist you!

Give us a call so we can go over the best legal solutions and help you explore your debt relief options. Set up your free consultation today!