Bankruptcy FAQ

Q & A with Orange County Bankruptcy Lawyers

There is no doubt that the bankruptcy process can be intimidating and thoroughly overwhelming to those just beginning to explore their options for debt relief. As the process is rife with obscure legal concepts, a great deal of technical financial information and numerous procedures, we find that far too many people delay taking action as the result of sheer confusion. At 1st California Law, Inc., our Orange County bankruptcy attorneys go above and beyond in our efforts to ensure that our clients understand precisely where they stand and exactly how bankruptcy works.

In an effort to provide residents throughout Orange County with the factual information they need to begin their bankruptcy legal journey, our attorneys have answered some of the most frequently asked questions we receive from our clients.

What is bankruptcy?
Bankruptcy is a legal action available to individuals and businesses who require relief from insurmountable debts. Created as a way to provide Americans with new avenues of opportunity and financial fresh starts, bankruptcy is a process that should be viewed favorably. Although it will not solve all financial problems, it can provide the starting point that can be used to obtain a debt free future.

How long does bankruptcy take?
The duration of your bankruptcy process will depend on a number of factors and circumstances involved in your case. Generally, consumers can complete Chapter 7 proceedings and obtain a discharge within six months of filing. Chapter 13 cases, in accordance to the payment plans involved, will last for either three or five years.

Will bankruptcy discharge all of my debt?
Although a discharge - or the release from liability for a debt - is the ultimate goal during bankruptcy proceedings, not all debts will be dischargeable. Typically, debts that cannot be discharged include certain taxes, student loans, spousal and child support debts, court fines and criminal restitution and others.

What is an automatic stay?
An automatic stay is the immediate protection afforded by bankruptcy. Upon filing a petition with the bankruptcy court, a court order will protect you from all debt collection activities against you, including:

  • Wage garnishments
  • Civil lawsuits
  • Repossessions
  • Debt collection phone calls
  • Foreclosure proceedings

How will bankruptcy affect my credit?
It is important for consumers to understand that while bankruptcy will most certainly have an impact on credit, the effects are not permanent. In most cases, a Chapter 7 bankruptcy can remain on a consumer credit report for up to 10 years, and a Chapter 13 bankruptcy for up to 7 years. Credit restoration is also an essential part of life after bankruptcy.

More Questions? Contact an Orange County Bankruptcy Attorney Today

These questions and answers are intended to provide anyone interested in learning more about the bankruptcy process with a solid foundation of the facts. It must be mentioned that your personal financial situation will determine your available debt relief options and how the process will work for you. We encourage those who wish to learn more about their unique case and the ways in which our firm can help to contact 1st California Law, Inc. today. Our Santa Ana bankruptcy lawyers are standing by prepared to assist you!