{"id":7663,"date":"2021-01-28T09:54:13","date_gmt":"2021-01-28T09:54:13","guid":{"rendered":"https:\/\/wefight4you.com\/?p=7663"},"modified":"2021-01-28T09:54:13","modified_gmt":"2021-01-28T09:54:13","slug":"the-basics-of-a-bankruptcy-filing","status":"publish","type":"post","link":"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/","title":{"rendered":"The Basics of a Bankruptcy Filing"},"content":{"rendered":"<p>Struggling with debt and financial problems is not easy. Bankruptcy law is a complicated matter that will require legal help from a reliable bankruptcy attorney. Bankruptcy filing helps a debtor pay all or wipe out certain debts. The two common types of bankruptcy are Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). You may choose from these bankruptcy forms depending on the types of debt you owe, whether they are mostly unsecured or secured debt.<\/p>\n<p><a href=\"https:\/\/wefight4you.com\/upland-bankruptcy-lawyers\/\"><strong>Filing bankruptcy<\/strong> <\/a>will be a great help if you want to repay your debts, prevent creditor harassment, stop foreclosure, and avoid wage garnishment. Once the bankruptcy court has approved your bankruptcy petition, an automatic stay shall be effective immediately.<\/p>\n<p><strong>These are bankruptcy basics that you should know before bankruptcy filing:<\/strong><\/p>\n<ol>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Family_or_relatives\"><\/span>Family or relatives<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662ae84e19b09\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662ae84e19b09\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Family_or_relatives\" title=\"Family or relatives\">Family or relatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Equity_in_your_home\" title=\"Equity in your home\">Equity in your home<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Homestead_Exemption\" title=\"Homestead Exemption\">Homestead Exemption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Bankruptcies_and_Divorce_Proceedings\" title=\"Bankruptcies and Divorce Proceedings\">Bankruptcies and Divorce Proceedings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Accounts_for_Retirement\" title=\"Accounts for Retirement\">Accounts for Retirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Creditors_or_Debt_Collectors\" title=\"Creditors or Debt Collectors\">Creditors or Debt Collectors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Fraud\" title=\"Fraud\">Fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Non-Dischargeable_Debts\" title=\"Non-Dischargeable Debts\">Non-Dischargeable Debts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wefight4you.com\/the-basics-of-a-bankruptcy-filing\/#Right_Timing\" title=\"Right Timing\">Right Timing<\/a><\/li><\/ul><\/nav><\/div>\n\n<\/li>\n<\/ol>\n<p>The assigned trustee in bankruptcy cases has the right to sue relatives who received a substantial payment from the filer within the year before the bankruptcy petition. That is, even if it was meant to pay back something that is owed legally. What you can do is to have such debt forgiven or discharged, and instead provide a post-petition repayment or pay-off to the relative concerned.<\/p>\n<ol start=\"2\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Equity_in_your_home\"><\/span>Equity in your home<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>Getting credit against the equity in your property to repay unsecured debts, such as credit card bills and medical bills, could be a big mistake. In a bankruptcy case, unsecured debts will likely be discharged or wiped-out while secured debts, like home equity, will not. If you are considering bankruptcy to get a discharge for your credit card debt, if things go well, you can end up with a greater amount of net cash for your mortgage payment. This will essentially allow you to stop foreclosure and other related legal issues.<\/p>\n<ol start=\"3\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Homestead_Exemption\"><\/span>Homestead Exemption<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>The state law in California provides for two different exemption systems. The first one is the CCP \u00a7704, which is advantageous if you have substantial home equity. The other one is the CCP \u00a7703, which comes with a relatively small exemption but enables any unused residual to be \u201cwildcarded.\u201d<\/p>\n<ol start=\"4\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Bankruptcies_and_Divorce_Proceedings\"><\/span>Bankruptcies and Divorce Proceedings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-7665 alignright\" src=\"https:\/\/wefight4you.com\/wp-content\/uploads\/2021\/01\/Basics-Bankruptcy.jpg\" alt=\"Basics of a Bankruptcy\" width=\"338\" height=\"338\" srcset=\"https:\/\/wefight4you.com\/wp-content\/uploads\/2021\/01\/Basics-Bankruptcy.jpg 338w, https:\/\/wefight4you.com\/wp-content\/uploads\/2021\/01\/Basics-Bankruptcy-300x300.jpg 300w, https:\/\/wefight4you.com\/wp-content\/uploads\/2021\/01\/Basics-Bankruptcy-150x150.jpg 150w\" sizes=\"(max-width: 338px) 100vw, 338px\" \/>It is usually best to file bankruptcy before filing for divorce, but note that each case is unique. You would need a spousal waiver from the non-filing partner if you are still married but would want to use the above exemption. In bankruptcy cases, Bear in mind that in almost all bankruptcy cases, it is difficult to wipe out unpaid alimony and child support. Furthermore, you may only file a joint bankruptcy petition if you are still married. Joint petitions generally cost much less when compared to separate bankruptcy filings.<\/p>\n<ol start=\"5\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Accounts_for_Retirement\"><\/span>Accounts for Retirement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>It is also a bad idea to take assets or funds from a retirement account. In general, retirement accounts are protected or covered in bankruptcy. Remember that you put up such an account to secure your financial future. Get legal assistance from a reliable bankruptcy lawyer to make sure you enjoy what you saved for your golden years.<\/p>\n<ol start=\"6\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Creditors_or_Debt_Collectors\"><\/span>Creditors or Debt Collectors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>Create a full list of everyone you owe money from, including those who usually do not submit a monthly invoice. Bear in mind that the automatic stay is enforced once the bankruptcy petition is filed in court.\u00a0 It means that all creditors must suspend all collection in the absence of a satisfactory request to do so.<\/p>\n<ol start=\"7\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Fraud\"><\/span>Fraud<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>A petition in bankruptcy is signed legally, under the possible penalty of perjury. It shall be subject to careful investigation and is considered as part of public record. You must strictly follow all relevant bankruptcy rules and not take actions that may seem to be dishonest.<\/p>\n<ol start=\"8\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Non-Dischargeable_Debts\"><\/span>Non-Dischargeable Debts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>Student loan debt, child support, and the certain tax debt that are insured are forms of non-dischargeable debt. Being aware of what you may or may not strike off your list of debts in a bankruptcy proceeding would make it easier to determine whether or not it is best to declare bankruptcy.<\/p>\n<ol start=\"9\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Right_Timing\"><\/span>Right Timing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<p>Timing is crucial. If you are facing debt problems, you might be making too much now to pass the bankruptcy means test, but that won\u2019t be the case a few months from now. You may have a tax debt that can\u2019t be discharged right now, but could be discharged tomorrow.<\/p>\n<p>It is important to consult with an experienced bankruptcy attorney to help you on how to file, understand the bankruptcy proceedings, and prepare the requirements necessary when filing for bankruptcy. <a href=\"https:\/\/wefight4you.com\/contact-us\"><strong>Contact us<\/strong><\/a> at the <strong>Law Offices of Marc Grossman<\/strong> for a free consultation: 855-5664-911<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Struggling with debt and financial problems is not easy. Bankruptcy law is a complicated matter that will require legal help from a reliable bankruptcy attorney. Bankruptcy filing helps a debtor pay all or wipe out certain debts. The two common types of bankruptcy are Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). You may [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7664,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[66],"tags":[],"_links":{"self":[{"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/posts\/7663"}],"collection":[{"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/comments?post=7663"}],"version-history":[{"count":0,"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/posts\/7663\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/media\/7664"}],"wp:attachment":[{"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/media?parent=7663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/categories?post=7663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wefight4you.com\/wp-json\/wp\/v2\/tags?post=7663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}