California Bankruptcy Attorney States Law Offers Debt Relief And Fresh Start

Nov. 28, 2009 - PRLog -- If you are drowning in debt and unable to pay bills, then filing for bankruptcy in California just might be the right option for you. Over a million people a year are receiving financial relief through bankruptcy.

The main reasons for filing personal bankruptcy in California are unforeseen medical expenses, credit card debt, job loss, and even divorce.  In many cases, we see that bankruptcy is also an excellent relief in stopping a foreclosure of your family home immediately.

The goal of the federal bankruptcy law is to offer a financial "fresh start" to the honest but unfortunate debtor allowing a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.

There are three different types of bankruptcy, California Chapter 7 and California Chapter 13 Bankruptcy, and; Chapter 11.  For most homeowners, or; those strapped with credit card debt, wage garnishments, and; court judgments - a Chapter 7 or Chapter 13 may be the right fit for you.

A filing under Chapter 7 can also be described as liquidation or also referred to as a 'non-asset' type situation.  It is the most common type of bankruptcy proceeding. Liquidation involves the appointment of a trustee who collects your non-exempt property, sells it and distributes the proceeds to the creditors.  There are various 'wild cards', which enables you to keep certain property that does not have to be sold off.  A discussion with one of our attorneys can assist you with determining if Chapter 7 is right for you.

Your involvement with the bankruptcy judge is usually very limited, if at all.  In a typical Chapter 7 you will not appear in court and will not see the bankruptcy judge unless an objection is raised in the case.  You will however make a brief appearance with the Bankruptcy Trustee (another attorney who advises the court).  The Trustee's job is basically to confirm that the information you have presented is true and correct, and; to make sure that you qualify for the Chapter 7 Bankruptcy.  You can either appear alone before the Trustee, or; with your attorney.  The meeting with the Trustee (also known as a 341 hearing), typically lasts anywhere between 2 and 10 minutes.

In California Chapter 13 Bankruptcy proceedings you may only have to appear before the bankruptcy judge at a planned confirmation hearing. Usually, the only formal proceeding at which you must appear is the meeting of creditors, which is usually held at the offices of the U.S. Trustee. This meeting is informally called a "341 Hearing" because section 341 of the Bankruptcy Code requires that you attend this meeting so that creditors have the opportunity to ask questions about debts and property.

Once a bankruptcy petition is filed, the automatic stay comes into effect. That means that creditors can no longer undertake any actions against you, including wage garnishments, foreclosures, repossessions, phone calls and the like. The stay against lasts until the bankruptcy case is closed.  This basically is a STOP SIGN to anyone trying to collect any monies from you.  The filing of the bankruptcy also stops those annoying and stressful phone calls.  It is my experience that in most cases, the filing of a bankruptcy helps to begin a client to find peace of heart, peace of mind.  And restful sleep is hopefully soon to follow.

If you feel that filing a California bankruptcy will give you a fresh start, it is recommended that you utilize the services of an experienced bankruptcy attorney. A California bankruptcy attorney will complete all the correct documentation and make court appearances for and with you.

For more information about filing for bankruptcy in California please contact the Law Offices of Louis Scott Brenes at 877-231-9880 or go to http://www.aboutbankruptcyincalifornia.com

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The Law Offices of Louis Scott Brenes are experts at filing California Chapter 7 and Chapter 13 bankruptcy. http://www.aboutbankruptcyincalifornia.com