Bankruptcy Lawyer in Irvine, CA Providing Assistance to Clients Desperate for a Fresh Start
America rewards the pursuit of excellence and economic success. However, there are many among us who fall on challenging times and find it impossible to pull themselves back out of such a restrictive financial situation. If you, or someone you love, is drowning in debt, it is important to understand that there are options available.
Bankruptcy has an ugly aura, but it is a solution that many are forced to consider when there is no other hope. And while, yes, filing for bankruptcy is not without risk, working with attorneys experienced in bankruptcy and foreclosure defense can be of great benefit to making sure you are choosing the right bankruptcy options for you and your needs.
Whether you are an individual, the head of a family, or the owner of small or medium-sized businesses, the law firm of attorney Patrick O’Kennedy would be proud to offer guidance and advice as you seek a clean slate free of debt.
If you are interested in learning more about bankruptcy or if you have found yourself in the middle of overwhelming bankruptcy litigation matters, our legal team can help. Please contact our Orange County law office to schedule a free case evaluation today.
How Does Chapter 7 Bankruptcy Law Work to Provide Debt Relief?
Chapter 7 is known as the ‘liquidation bankruptcy,’ but try not to let that scare you off. This is the quickest, most streamlined form of bankruptcy, allowing individuals to wipe out several types of unsecured debts. When you file bankruptcy, a temporary stay of all collection attempts will be put in place, meaning that you will not have to put up with constant phone calls or worry about visits from collection agencies at your place of employment. When it is finalized, various debts will be discharged, granting you a fresh start. And over time, you will begin to rebuild your credit rating.
It is true, however, that certain assets and property may be put at risk of being repossessed by creditors and banks. But many clients are asked to surrender little or nothing at all, as many assets are exempt. Only clients with larger estates, such as those with multiple homes and additional luxury vehicles, may have cause for concern about losing certain property to their lenders. However, foreclosure defense is one of the many legal services that bankruptcy attorneys provide to help in cases such as these.
When certain nonexempt assets and property are put into the right types of trusts, they can be shielded from collection attempts. To learn more, hire legal counsel familiar with bankruptcy and the rights of estate holders.
While Chapter 7 is the most popular option for individuals and those with a family, business owners may also consider this bankruptcy option.
What Unsecured Debts Can Be Wiped Clean by Chapter 7 Bankruptcy?
Types of debt that can be discharged via Chapter 7 include:
Collection agency loans.
Credit card debts, including late fees.
HOA fees following a foreclosure.
Medical debt, for example mounting medical bills after a personal injury or accident.
Mortgage loans (please note that while the unsecured debt may be discharged, the property may fall into the possession of the lenders).
Overpayments to Social Security or Veterans’ Affairs.
Unsecured payday loans.
Unsecured personal loans.
With very few exceptions, tax debts are not usually discharged by Chapter 7.
Other debts that are not typically forgiven by filing for Chapter 7 include:
Alimony and spousal support.
Personal injury debts, such as those incurred in accidents caused by your actions while intoxicated or acting negligently.
What is Chapter 13 Bankruptcy?
Chapter 13 allows debtors to propose a repayment plan to their creditors and lenders. If this plan is agreed upon by all parties, then the debtors may continue to do business with the understanding that they are to pay back their debt in the agreed-upon installments over three to five years.
Chapter 13 is more popular for those with reliable income and for family estates of considerable size who have concerns about the liquidation process involved in Chapter 7 bankruptcy.
Not every client meets the necessary criteria to file for Chapter 13 bankruptcy. The repayment plans proposed must be realistic and signed off on by any relevant creditors. A case trustee of the U.S. Bankruptcy Court must also approve of your plans.
To learn more about Chapter 13 and other potential bankruptcy alternatives, please contact the Law Office of Patrick O’Kennedy for a free case evaluation.
How Can We Help You in Situations of Civil and Business Litigation?
In some bankruptcy cases, things can turn contentious and end up in an adversary proceeding. The creditor may file for an adversary proceeding if they feel the debtor is trying to escape their debt unlawfully, such as cases where they suspect that the debtor never intended to repay their debts in the first place.
With the help of professional lawyers, a person or business may have a better chance of success if their case ends up in the court system in a matter of civil or business litigation. This legal issue must be taken seriously and it is important that you speak to attorneys who are well-versed in defending clients’ rights in these matters.
To learn more about the legal services offered by the Law Office of Patrick O’Kennedy, please contact our law firm to schedule a confidential consultation.
Schedule a Free Consultation with an Experienced Bankruptcy Attorney Today
It’s always been hard to keep our heads above water financially and the pandemic has certainly not made it any easier. If you are facing mounting debts, it is important for you to understand the options and alternatives for debt relief available to you, your family, and your business.
While all licensed lawyers in California had to pass the notoriously challenging State Bar exams, not all the state’s attorneys are well-versed and knowledgeable in the complexities of bankruptcy, financial debts, foreclosure, and loan modification. The Law Office of Patrick O’Kennedy has over 20 years of experience helping clients in bankruptcy and family law matters, so you can feel confident that your case is well cared for.
To schedule a free consultation, please call us at (714) 919-1855.