Muoi Chea is an experienced and knowledgeable bankruptcy attorney with a long successful track record of representing clients in Bankruptcy Court under Chapter 13 and 7 Bankruptcy.
If you are facing foreclosure, wage garnishment, lawsuit, IRS tax levy, tax debt, repossession, or large bills from credit cards, medical, payday loans or personal loans, then read further to understand how bankruptcy can help you.
When you file for bankruptcy, “automatic stay” comes into effect immediately. This stops most creditors from collection activities like foreclosure, wage garnishment, lawsuit, repossession, and harassing phone calls. Whether you should file for Chapter 7 or Chapter 13 Bankruptcy depends on the facts of your case.
1. Chapter 13 Bankruptcy can stop Foreclosure,
2. Stop Car Repossession,
3. Strip off or remove second mortgage, home equity line of credit or other junior liens,
4. Stop Internal Revenue Service or Franchise Tax Board from wage garnishment and bank levy by putting the IRS or FTB priority tax debts into a payment plan for up to 60 months with no penalties and interests,
5. Eliminate Tax Penalties on nondischargeble priority income tax debts,
6. Strip down or reduce payment to car loans,
7. Continue operation of your business and keep business assets,
8. Keep assets that would otherwise be liquidated in a Chapter 7 Bankruptcy,
9. Chapter 13 Bankruptcy can discharge or eliminate more debts than Chapter 7 Bankruptcy.
I like Chapter 13 Bankruptcy because of the wide range of tools available to my clients in dealing with their debts. Not everyone is the same. Different clients will need different solution. Many of clients appreciate that Chapter 13 Bankruptcy can force their mortgage lender into a payment plan for the arrears in 60 months to stop a foreclosure or to stop the IRS from wage garnishment or tax levy for nondischargeable or recent tax debt by forcing the IRS to accept a payment plan in 60 months. In both situation, the arrears are paid back in 60 months without penalties or interests. GREAT!!!
These are just the most common benefits of Chapter 13 Bankruptcy filing over Chapter 7 Bankruptcy. There might be other benefits to your case that are not listed.
At Elk Grove CA Bankruptcy Attorney Office, a common question is whether both spouses must file for bankruptcy.
The answer is “no”. One spouse can file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy and the other spouse who has no debt can avoid filing and preserve her credit. However, it might be better for both spouses to file for bankruptcy especially if both spouses have debts. Bankruptcy filing of one spouse only protects that filing spouse’s separate property and the community property. The non-filing spouse’s separate property is not protected by bankruptcy. For more information, click on this Bankruptcy Attorney blog: Does Bankruptcy Discharge of One Spouse Protect Community Property or Non Filing Spouse?
Other Common Questions at Elk Grove CA Bankruptcy Attorney Office:
You should list all known debts in your bankruptcy petition and give creditors notice of your bankruptcy filing. However, it is not uncommon that filer forgot about a debt or a creditor. The consequences will differ depending on whether you file a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.
If it is a no asset Chapter 7 Bankruptcy case and the creditors will receive nothing from the bankruptcy, then unlisted dichargeable debts will be eliminated in Chapter 7 Bankruptcy. In re Beezley. Of course the unlisted creditors can raise objection as to not having opportunity to raise a defense to your discharge like the debt was fraudulently incurred. On the other hand, if it is an asset Chapter 7 case, you must list the dischargeable debt in order to eliminate it.
If instead a Chapter 13 Bankruptcy is filed, debts or claims not listed will not be discharged or eliminated because there might be a tiny distribution to your creditors. You are stuck with the unlisted debt even though you completed your Chapter 13 plan payments.
For more information, schedule a Free Bankruptcy Consultation with Muoi Chea Bankruptcy Attorney servicing Elk Grove, Galt, Lodi, CA. Bankruptcy Attorney Fees are affordable and payment plans are available so you can begin the road to financial recovery quicker.