Personal Bankruptcy in Irvine
Posted By Price Law Group
If you are like thousands of other California residents who are unable to pay bills or facing home foreclosure, filing bankruptcy may be one option for getting a fresh financial start. Irvine residents who have faced an unexpected divorce or death or who have had an unexpected medical crisis can contact an Irvine bankruptcy lawyer to find out if they qualify to file bankruptcy.
Filing bankruptcy is a serious decision which may have long term financial ramifications, but an Irvine bankruptcy attorney can answer your questions and help you decide if bankruptcy is right for you. If it is, they can determine if you are eligible to file Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Filing Chapter 7 bankruptcy in Irvine may allow you to eliminate your excessive debt by liquidating your assets and using the proceeds to pay your creditors. Filing Chapter 13 bankruptcy in Irvine does not immediately discharge debt but a debt repayment plan may be used to repay creditors and stop home foreclosure and property repossession.
Filing Chapter 7 Bankruptcy in Irvine
Filing Chapter 7 bankruptcy in Irvine allows Irvine filers to eliminate qualifying debt by selling their non-exempt assets and using the money to pay their creditors. Chapter 7 bankruptcy is the most common bankruptcy filed and it can be an inexpensive and simple way for Irvine filers to start over.
Residents who want to file Chapter 7 bankruptcy in Irvine should first contact an Irvine bankruptcy attorney. The bankruptcy attorney is responsible for filing the bankruptcy petition. Filers must provide financial information about all of their debts, non-exempt and exempt assets, creditors and income. The bankruptcy court will assign a trustee to help sell the filer’s non-exempt assets and repay the creditors from the proceeds of the sale. A meeting will be held with the creditors (341 Meeting). Most Chapter 7 bankruptcy claims can be completed within 4 to 6 months after the bankruptcy petition is filed.
Filing Chapter 13 Bankruptcy in Irvine
Filing Chapter 13 bankruptcy in Irvine is not as simple as filing Chapter 7 bankruptcy. Chapter 13 bankruptcy does not immediately discharge debt through asset liquidation, but instead “reorganizes” the debt payments with a bankruptcy repayment schedule. The repayment plan spreads the debt payments over a three to five year period which can often produce more favorable repayment terms.
Filing Chapter 13 bankruptcy in Irvine can also stop home foreclosure and property repossession. Everyone does not qualify for Chapter 13 bankruptcy. To qualify, a filer must have a dependable source of income and unsecured debt which is less than $269,250 and secured debt which is less than $807,750.
Personal Debts Not Eliminated By Filing Personal Bankruptcy
Filing bankruptcy in Irvine does not eliminate all personal debt. Personal debt which is not discharged is defined by federal bankruptcy laws and is the same for all states. Filing bankruptcy in Irvine does not discharge the following debts:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Irvine
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy
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