Orange County Bankruptcy
Our Santa Ana California attorneys can help
Every day, the Orange County bankruptcy attorneys at Thomas Kerns McKnight LLP help individuals and families throughout the surrounding area of Santa Ana to obtain relief from crushing consumer debt through a Chapter 7 or Chapter 13 Orange County bankruptcy petition.
According to the U.S. Courts, California ranks in the top ten states in Chapter 7 bankruptcy filings and is 11th in the nation in all Chapter filings combined. Here are the latest bankruptcy statistics. Although it can have long-term consequences and should not be entered into lightly, a bankruptcy filing can be a boon to consumers overwhelmed with debt and unable to keep up with monthly payments. We analyze each client's situation to help them determine whether bankruptcy is right for them and if so, which type of proceeding will be most beneficial given their particular circumstances.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy is also known as a liquidation, because many of the filer's assets are sold off, with the proceeds being used to pay off debts. While this may sound like a drastic step, it is important to note that there are many types of assets which may be exempt from the liquidation, so it is not as though you must sell off everything you own. And once the proceeds of the liquidation have been applied to your creditors, most remaining debts are discharged by the court. Debtors can therefore come out of the process virtually debt-free, and ready to make a fresh start. Chapter 7 is usually most appropriate for debtors with large amounts of unsecured debt who cannot make monthly payments, while interest continues to pile up.
It is important to know that some debts are not dischargeable in bankruptcy and will remain the responsibility of the debtor to repay, even after bankruptcy. These can include secured debts, tax liens, student loans, child support obligations, and certain other debts. Our Chapter 7 bankruptcy lawyers in Orange County can explain the bankruptcy process in further detail.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is also known as a wage earner's plan; it is most appropriate for a debtor with a steady income who is able to put aside some money each month to go toward paying off debt. Under this approach, the court draws up a plan, along with input from the debtor and creditors, that provides for repayment of existing debt over a 3- to 5-year period. The steps to filing a chapter 13 bankruptcy can be made easy by our Orange County debt settlement lawyers.
Although a Chapter 13 does not wipe the slate clean the way Chapter 7 tends to do, it does provide the debtor with some breathing room and a chance to catch up on payments, which can help save a home from foreclosure or other property from repossession.
The Right Advice at the Right Time
At Thomas Kerns McKnight LLP, our chapter 7 and chapter 13 bankruptcy attorneys in Orange County understand that bankruptcy is not always the best option, and offer a full array of debt settlement options, counseling the client on which options may be right for them. It all starts with a phone consultation to see if bankruptcy may be in the client's best interest, followed by a personal meeting where we explain what is involved in the bankruptcy process and answer common questions, such as whether the debtor will be able to keep the family car or stay in his or her home. Visit Thomas Kerns McKnight LLP for a free initial consultation with no obligation.
