California Bankruptcy Attorneys Guide You Through The Process

2007-03-08 10:33:40

( Legal )



The legal process of bankruptcy gives you two fundamental options regarding your debts: to eliminate them or to repay them gradually under court supervision. It involves some complicated legal matters which need the expertise of bankruptcy attorneys in your area.

If you reside California and you would like to file for bankruptcy, make sure you should get legal representation from California bankruptcy attorneys. When your attorney files for bankruptcy on your behalf, the court usually orders an automatic stay to take effect. The stay prohibits more creditors from taking any action to collect the debts you have incurred.

California bankruptcy attorneys should be able to assess what type of bankruptcy is suitable in your case. For individual debtors, the popular choices are bankruptcy filings for liquidation or filings for reorganization.

In liquidation bankruptcy, you would be asking the court to eliminate your debts. But you have to give up any property you own that is not exempt from collection suits. The property will then be sold so the proceeds can be distributed among your creditors. California bankruptcy attorneys will be able to determine if you qualify for liquidation proceedings under the new law.

The terms for reorganization bankruptcy filings require you to submit a repayment plan to pay off your debts over time. Since the new bankruptcy law took effect in October 2005, some debtors are limited only to reorganization bankruptcy filings. California bankruptcy attorneys can help evaluate your available options.

When you file for liquidation bankruptcy, you can claim certain assets as exempt. California bankruptcy attorneys will guide you what to choose between two different lists of exemptions. The first list is often used when you have some equity in your homes, while the second list allows you to exempt almost twenty thousand dollars of any type of your property.


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