Frequently Asked Questions about Bankruptcy
When contemplating a bankruptcy action, there are often many questions and concerns that people have about the legal process and its associated effects on your financial future. As experienced Los Angeles County bankruptcy attorneys, we have spent countless hours educating clients about their bankruptcy options as well as what to expect during the legal process. Accordingly, we have put together the following most commonly asked questions about bankruptcy in order to help you determine whether it is right for you:
1. Will I lose all of my property after I file for bankruptcy?
2. Is it nearly impossible to file for Chapter 7 bankruptcy under the new laws?
3. Will a bankruptcy action stop my creditors from harassing me?
4. Must I file bankruptcy jointly with my spouse?
5. Will I be eligible for credit after my bankruptcy action is completed?
6. Can my employer fire me for filing for bankruptcy?
To learn more about your debt relief options, contact the Goldbach Law Group today!
If you are in debt, there are a number of options to choose from in order to regain your financial freedom. For more than two decades, the attorneys at the Goldbach Law Group have been assisting clients in finding practical solutions to even the most challenging financial problems. For more information, contact us today at (562) 696-0582 to schedule a free confidential consultation. We service clients located throughout Los Angeles County, including the Whittier, Norwalk, Downey and El Monte areas. Se Habla Espanol.
- No. When a person files for bankruptcy, there are certain types of property that are not required to be surrendered to creditors under state and federal property exemptions. A qualified Los Angeles County bankruptcy attorney can assist you in determining your legal options in this regard.
- There is no doubt that the 2005 amendments to the U.S. Bankruptcy Code have affected some people’s ability to file for bankruptcy. However, it does not mean that obtaining Chapter 7 relief is impossible. Specifically, if you have significant debt, you may be able to file for Chapter 7 bankruptcy. If not, there are other options, such as Chapter 13 reorganization bankruptcy.
- Yes. Once you file for bankruptcy, an automatic stay is applied to all of your qualifying debts. In other words, while the stay is in place, your creditors cannot contact you, repossess your property, foreclose on your home, file garnishment actions or pursue any other type of debt collection methods.
- Not necessarily. If you reside in a community property state such as California, there are certain types of debt, such as credit cards, that are considered “marital” for purposes of bankruptcy. While there are certain exceptions, if one spouse in California applies for a credit card in his or her name only, the other spouse is still obligated to repay the debt. In other words, although a debtor can file individually for bankruptcy, both parties to a marriage in a community property state may be held liable for the debt.
- Yes. To creditors, you are often considered a better credit risk after your bankruptcy action is finalized. In this view, many financial institutions offer credit to those who discharge their debt, such as secured credit cards. This allows a debtor to secure their credit card with a certain amount of money to guarantee payment of the debt.
- Absolutely not. Pursuant to 11 U.S.C. §525, private employers and government agencies cannot discriminate against employees who file for bankruptcy or who fail to pay their debts.