Irvine, CA, USA
A bankruptcy is a petition by a debtor for relief from the court for debt. By obtaining relief, known as a “stay”, a debtor can protect themselves from the efforts to collect by creditors until an agreement can be reached on how to re-pay the debt or to discharge the amount owed all together. Cases will vary, from regular payments scheduled to, in some cases; payments may not be made at all. When these debts have been discharged in a court of law, and that court releases the debtor from the action and liability, the petitioner is free to engage in contracts of new debt as well as obtain new assets. Bankruptcy courts are Federal entities that have control over districts and supersede judgments by lower courts.
A good bankruptcy attorney in Orange County knows under the code of law, debt is classified according to types. Secured debt is secured by an asset, such as a car, home, etc. Unsecured debts, mostly seen in credit card debt, are not backed by any assets. There are certain debts, like taxes and child support that are non-dischargeable. This means that they will not be discharged by the bankruptcy court and will remain a debt. Depending on the needs of a client, there are several types of bankruptcies designed to meet those specific needs. It is very important for a person who is embarking on a bankruptcy to employ a qualified bankruptcy attorney to guide you through the process. Depending on the type of debt, and the amount owed, there will be a specific type of bankruptcy that a debtor will fall into, and a bankruptcy attorney is the person best suited to decide which is right for you.
Filing Chapter 7 bankruptcy in Orange County, also known as liquidation, is appropriate in situations where the debtor has little secured debt or does not plan to keep assets. Although you can shelter a certain amount of equity in your home and other secured property, Chapter 7 typically involves simply discharging all debt, releasing all assets to creditors, and starting over. A bankruptcy attorney will usually advise a Chapter 7 if you have little to no secured debt and few non- dischargeable debts.
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