California Bankruptcy FAQ

Find Out if Bankruptcy is Right for You

Are you overwhelmed with debt? Bankruptcy is a viable tool for Americans who are facing serious financial crisis and it gives families an opportunity to get back on their feet. With several years of experience, our Butte County bankruptcy attorneys have proudly served families of Chico and other surrounding areas, providing trustworthy legal and financial advice. Our firm is committed to finding a solution for your debt-related problem and we can help you answer questions such as, "Is bankruptcy right for me?" or "Do I qualify for bankruptcy?" We can sit down with you to discuss all of your legal options and also inform you of the alternatives to bankruptcy. Our attorneys will evaluate your case for free, so call today and learn how we can help you get out of debt.

Do I qualify for bankruptcy?

Since the bankruptcy laws were updated in 2005, bankruptcy applicants are now required to take a means test which helps them determine if they should apply for Chapter 7 or Chapter 13 bankruptcy. The means test is used to help the government determine whether or not you make less than the standard level of income in the U.S. and it will help determine which type of bankruptcy you are eligible for. If you have dismissed a bankruptcy case in the last 180 days however, then you may not be eligible to file another bankruptcy petition. Every type of bankruptcy is designed to eliminate certain debts and we will be more than happy to sit down with you to discuss the specifics of your case.

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How long will bankruptcy stay on my record?

When you file for bankruptcy, it will remain on your credit history report for ten years. During this time, you will still be able to apply for credit or apply for a loan. If you slowly build up your credit, then you may see a significant increase in your credit score after only 2-4 years.

Will filing for bankruptcy force creditors to stop harassing me?

Yes, once you file your bankruptcy petition, you will be protected under the Automatic Stay which is found in section 362 of the United States Bankruptcy Code, 11 U.S.C. § 362. This injunction will protect you from creditor harassment and stop any further scrutiny or future collection actions. This means no more patronizing phone calls, no more collection notices and it may also be able to stop the foreclosure, repossession or wage garnishment process. Amongst the discharge of debt, this is one of the many benefits of bankruptcy.

Is filing for bankruptcy public knowledge?

When you file your bankruptcy petition, only a select group of people will be notified. After filing for bankruptcy, the bankruptcy court, the creditors, and the IRS will be made aware. Outside of those people, no one else has to find out that you have filed for bankruptcy. The only time it will come up is if someone asks to look at your credit report within 10 years of filing. This means that your family and friends do not have to know that you're going through the bankruptcy process if you want to keep the matter private.

What can expect when I meet with a bankruptcy attorney?

When it comes to matters of financial crisis, it is vital that you make informed decisions about your financial future. That is why it is essential that you speak with an experienced bankruptcy attorney in your area. Our attorneys will be able to sit down with you to evaluate your financial situation and can help determine the best possible to solution, whether that means filing for bankruptcy or pursuing an alternative to bankruptcy. Your bankruptcy attorney will then need a comprehensive list of all assets and debts and will need your help to do a thorough investigation of your finances. Once you can clearly see how much money is coming is and how much is going out, you can better assess how to prepare your bankruptcy petition. There is a filing fee when you file with the bankruptcy court, speak to your attorney today about how much the fee will be and if it is possible to request that the fee be waived.

Does goes bankrupt make me a failure?

Absolutely not- many people have negative preconceived notions about bankruptcy that simply aren't true. Bankruptcy is a viable tool, offered by the government, to help Americans with debt relief when they are in severe financial crisis. Many good and hardworking people are forced to file for bankruptcy due to a change in personal circumstances. Whether you are going through a divorce or you have lost your job, you can go into debt rather quickly and bankruptcy can help you get back up on your feet. Bankruptcy is not this dread financial remedy that many make it out to be, it actually offers many benefits including the discharge of debt.

If my employer finds out that I filed for bankruptcy, could my job be in jeopardy?

No, the law protects bankruptcy applicants from discrimination. If your employer hears that you have filed for bankruptcy and they complain about the wage garnishment process, they are not allowed to fire you on those grounds. In fact, all government agencies across the board are prohibited from discriminating against bankruptcy applicants.

To discuss the specifics of your situation or to find out if bankruptcy is right for you, contact a Butte County bankruptcy attorney from our firm today. Your first consultation is free!