What is Bankruptcy?

Bankruptcy is a Federal Law granting a person relief from the pressures of debt.  Chapter 7 bankruptcy is often called a "fresh start" bankruptcy because it clears away nearly all of a person's debt.  Chapter 13 bankruptcy is referred to as the "wage-earner" bankruptcy because it requires the debtor filing bankruptcy to make monthly payments.   Both chapter 7 and chapter 13 bankruptcy follow a similar process which is outlined below.  

How to File for Bankruptcy and Obtain Debt Relief

Schedule an Appointment
First schedule a free appointment with our experienced attorney who will listen to your legal issues and suggest an appropriate and affordable solution. 
Call 510-556-1160.

Getting Ready to File Bankruptcy
Our attorney will send you home with a checklist to help you prepare the necessary paperwork to file bankruptcy.  You must complete the items on the checklist and then return the completed paperwork to our bankruptcy attorney, who will then get your case ready for filing. 

Filing Bankruptcy
Once your bankruptcy case is ready to file, you will meet with our experienced bankruptcy lawyer and sign off on all of the paperwork.  Then the case will be filed and you will immediately receive a case number. Then the automatic stay goes into effect so that your creditors will no longer be allowed to contact or harass you.  About 30 days after filing, you and our attorney will meet with a court-appointed bankruptcy trustee who will review the bankruptcy petition with you.  In a chapter 7 the case will be over and your debts forgiven about 60 days after the meeting with the bankruptcy trustee.  In a chapter 13 a repayment plan will have to approved by the judge and all of the bankruptcy repayment plan payments need to be made before a discharge of debts is granted.  

Discharge and Rebuilding Credit
A chapter 7 bankruptcy discharge applies to most debts, including medical bills, credit card bills, attorney fees, mortgages, car loans and many other debts.   A chapter 13 discharge is broader and may include debts such as taxes and government fines.  Once you receive a discharge, then the debt is discharged forever and you will not suffer any tax consequences as a result.   We recommend that you attempt to rebuild your credit after the bankruptcy discharge. Your credit can rebound quickly after bankruptcy when you take the right steps, such as correcting any inaccuracies on your credit report and continuing payments on "good" debt such as mortgages and car loans.