When you come in for a FREE Consultation, I will explain your options under the Bankruptcy Law as well as Bankruptcy alternatives. If you decide that Bankruptcy is the right option for you, I will quote you a reasonable fee. You are under no obligation, and whatever you decide, my advice to you in the consultation is free. My fees are reasonable because I sympathize that you are struggling financially and are seeking debt relief. That is why I also offer payment plans so that we can begin the road of recovery together quicker.
Know you Rights under the Bankruptcy Law and STOP
Common Bankruptcy Questions Asked by Residents of Vallejo CA & Benicia CA:
What Kind of Debts are Dischargeable or Eliminated in Bankruptcy?
Examples of dischargeable debts in bankruptcy, whether you file for Chapter 13 Bankruptcy or Chapter 7 Bankruptcy, are credit cards, medical bills, unsecured personal loans, and deficiency from car repossession or foreclosure.
Examples of non-dischargeable debts are child support, alimony, recent taxes, debts incurred through fraud, fines, restitution, personal injury or property damages from DUI or driving under the influence, student loans (where there is no undue hardship), and intentional torts.
Will creditors stop calling me and demanding payment once I filed Bankruptcy?
Upon filing of Bankruptcy, whether it is Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, “Automatic Stay” takes effect. Under the Bankruptcy Code, Automatic Stay prevents creditor from attempting to collect on a debt, which includes calling you to demand payment.
However, creditors might not know that you filed for bankruptcy. It takes time for the Sacramento Bankruptcy Court (if you live in Solano County, you will attend court in Sacramento, CA) to mail out notice of bankruptcy filing to your creditors. If you receive creditors’ call after filing bankruptcy, give them your bankruptcy case number and referred them to your Bankruptcy Attorney. Muoi Chea Bankruptcy Attorney will gladly take all creditors’ calls and prefers that clients do not say anything more to their creditors and refer all creditors’ call to Muoi Chea Bankruptcy Attorney Office serving Vallejo California residents.
Once creditors learn of your bankruptcy filing, they are to cease collection attempts immediately unless they receive an Order from the Bankruptcy Court permitting them to proceed collection activities, which is very rare.
The Automatic Stay applies to tax collectors and creditors of non-dischargeable debt, who must stop attempts to collect on assets of the bankruptcy estate, until either the debtor receives a bankruptcy discharge or creditors receive a court order that permits them to continue collection activities.
I received a Lawsuit (Summons and Complaint) from one of my creditors. Can they order a wage garnishment from the lawsuit?
The purpose of filing a lawsuit is so that your creditor can seek legal recourse against the debt you owe by wage garnishment, bank levy, or placing a judicial lien (aka judgment lien) on your house or other real estate. You should never delay in dealing with your debt because once the wage garnishment or bank levy are in place, most of the time you cannot get your money back. Once you get a summons and complaint or lawsuit, you should schedule an appointment with a bankruptcy attorney immediately to discuss your options and whether bankruptcy is a viable option for your case. Remember, not all debts can be discharged or eliminated through bankruptcy.
In the Summons, it tells you that you have 30 days to respond. After the 30 days, your creditor can request a default judgment due to your lack of response. Once the default judgment is filed, your creditor can obtain an order for wage garnishment or bank levy or record an abstract judgment with the county recorder’s office to place a judgment lien (aka judicial lien) on your house or real estate.
Do both spouses have to file for bankruptcy?
No. Both spouses do not have to file for bankruptcy. However, it might be a good idea for both spouses to file bankruptcy especially if both spouses owe credit card debts, medical bills, personal loans, payday loans, deficiency from foreclosure or repossession. Call to schedule a bankruptcy consultation to determine if both spouses should file for bankruptcy.
How can I save my house from foreclosure by filing for Chapter 13 Bankruptcy?
If you are failing behind on your mortgage payments and a foreclosure is imminent, you should schedule a consultation with an experienced Bankruptcy Attorney serving Vallejo or Benicia California. Do not wait until you get a Notice of Default or Notice of Trustee Sale. You should know all your options in advance so that you have time to decide what to do and get it done. Delay will only limit your options. Chapter 13 Bankruptcy saves your home from foreclosure by putting the mortgage payment arrears into a payment plan of up to 60 months. At the same time, you must pay your monthly mortgage payment through the plan. As long as you are current on your Chapter 13 Bankruptcy plan payment, your lender cannot foreclose your home. Call Muoi Chea Bankruptcy Attorney for more information and whether Chapter 13 Bankruptcy is an option for you.
How much time do I have until the actual foreclosure date to save my house once I received a Notice of Default?
First of all, you should NEVER delay to the point of receiving a “Notice of Default” to talk to an attorney about your options to avoid foreclosure. When you received a Notice of Default, you have at least 90 days from the date on the notice to pay the lender the deficient amount. For most borrowers in this situation, it is difficult to come up with the back mortgage payment to satisfy the Notice of Default. This the time to consult an experienced bankruptcy attorney if you have not done so already. It takes a lot of time to gather your documents and for the attorney to put together the information to file your Chapter 13 Bankruptcy case while dealing with other clients and court hearings.
Once the 90 days is up, the lender will give you a “Notice of Trustee Sale”, which will tell you the time and place of the foreclosure sale. If you haven’t retained a bankruptcy attorney yet, you are in serious trouble because the foreclosure date is schedule at least 21 days from the date of the Notice of Trustee Sale. For most bankruptcy attorney the time constraint at this point is difficult to manage and will likely result in a rejection of your case. The point I want to illustrate is that delaying just limits your options to saving your home from foreclosure. I still receive calls from distressed homeowners asking to save their home from foreclosure just a couple days from the foreclosure sale date (aka Trustee Sale date). Waiting until the last minute does not help anyone. One the house is sold in the foreclosure or once the foreclosure date has passed without an extension from the lender, it is too late to save your house.
If a third-party proposes an offer to save your house from foreclosure that sounds too good to be true, most likely it is. Click on the following link for more information about foreclosure scams: https://www.muoicheabankruptcyattorney.com/2015/07/21/beware-of-foreclosure-scams-bankruptcy-attorney-in-sacramento-stockton-farfield-ca/
Before the consultation with Bankruptcy Attorney, make sure you bring the “Notice of Default”, “Notice of Trustee Sale”, and most recent mortgage statement so that the Bankruptcy Attorney can estimate your Chapter 13 Bankruptcy monthly plan payment.
I owe back taxes to the IRS and Franchise Tax Board (aka state tax) and they are threatening wage garnishment. How can Bankruptcy help me?
Some tax debts are dischargeable and can be eliminated through bankruptcy. If you have tax debts that cannot be eliminated through bankruptcy, you should consider filing a Chapter 13 Bankruptcy to put the tax debt in a payment plan for up to 60 months. This makes the IRS tax liability more manageable when the monthly payment is reasonable and you know you will pay it off within 5 years. The penalties accrued for most tax debts can be eliminated even though the tax itself cannot be eliminated through bankruptcy. When you are making payments toward your tax debt, the penalties does not accrue. Sometime, the IRS or FTB might tell you to pay the interests after your Chapter 13 Bankruptcy case is done. Call for more information on what tax debt can be discharged and whether Chapter 13 Bankruptcy is an option for you to make your tax payment more manageable.
Before your consultation with Bankruptcy Attorney, you should obtain a copy of your “Account Transcript” for the tax years you owe tax liability. The “Account Transcript” will provide information for the Bankruptcy Attorney to determine which tax debt can be eliminated or discharged through bankruptcy so that you do not have to pay all tax debts.
There are IRS offices near Vallejo and Benicia, California. Click on the following link for Internal Revenue Services office location near you: https://www.irs.gov/uac/Contact-My-Local-Office-in-California
You must have your driver’s license and social security card with you when you go to the IRS office because they required personal identification to obtain personal information. Printout of the “Account Transcript” is free of charge.
I own a business and I want to file for bankruptcy. Will the Bankruptcy Court interfere with my business? Will I be able to keep all my business assets after filing for bankruptcy?
It depends on how much your business is worth, the amount of net income it generates, the amount of nonexempt business assets, and whether you file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. If you are a sole proprietorship and your business generates significant net income and has nonexempt assets, you should file a Chapter 13 Bankruptcy instead of a Chapter 7 Bankruptcy if you want to continue business operation. If you file a Chapter 7 Bankruptcy in this example, you risk the Chapter 7 Trustee liquidating your business assets or sell your business to the highest bidder to repay your creditors. If you file a Chapter 13 Bankruptcy, you can continue business operation without interference from the Bankruptcy Court because you are in a payment plan to your creditors. Filing for Chapter 13 Bankruptcy does not necessarily mean you have to repay 100% of your debt back or could just be as little as One Percent depending on your case.
If your business is a corporation, limited liability company, or partnership, the business cannot file for Chapter 13 Bankruptcy because Chapter 13 Bankruptcy is personal bankruptcy. The business entity would have to file for Chapter 11 Bankruptcy if you want to keep the business. If your business has very little or no value, you might qualify for Chapter 7 Bankruptcy. However, such a decision requires careful analysis by an experienced Bankruptcy Attorney for fear of liquidation of business or business assets. However, you personally can file for Chapter 13 Bankruptcy but your business entity will still be responsible for its debts.
Sole proprietorship can file for Chapter 13 Bankruptcy because it not a separate business entity. You and the sole proprietorship are the same person and your debts are dealt with in the bankruptcy case.
What should I bring for the consultation with the Bankruptcy Attorney so that the time is well spent?
Click on the following link for the minimum documents you should bring for the bankruptcy consultation: https://www.muoicheabankruptcyattorney.com/consultaion-sacramento-stockton-fairfield/
Stop Creditors today and Get A Fresh Start by calling Muoi Chea Bankruptcy Attorney serving Vallejo California, Benicia CA, and all of Solano County California at (707) 394-4195.