1st California Law Inc.
Life can sometimes be difficult. Many hardworking people sometimes find themselves in times of financial trouble. Overwhelming debt is stressful and leaves people uncertain about their future. 1st California Law understands this and we are here to assist you.
At 1st California Law, we help individuals file for bankruptcy protection and help people get the financial relief they desperately need. Our office is committed to providing the best possible legal services at a reasonable and affordable cost.
Our goal is to fully satisfy all of our clients' needs and to help you in your time of need. We will handle your case with the utmost professionalism, as an attorney will personally handle your case and will always be accessible to you. We offer free initial attorney consultations, consultations by phone, and weekend appointments.
If you are facing overwhelming debt, foreclosure, repossession, wage garnishment, or other financial problems, please do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for financial relief through bankruptcy protection.
For a Free Consultation Please Call 1-949-735-8499
1st California Law Inc is a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Bankruptcy Basics
What Is Bankruptcy?
Bankruptcy is a legal proceeding for people who cannot pay their bills or creditors and are looking for a fresh start from their debts and obligations. Filing a bankruptcy petition immediately stops all of your creditors from seeking to collect debts until your debts are sorted out by the bankruptcy process. All bankruptcy cases are handled in federal bankruptcy court.
When Should I File Bankruptcy?
Every bankruptcy case is different, and it is recommended that you consult with a bankruptcy attorney to see if bankruptcy relief is right for you. Generally, you should not file a bankruptcy if you have only a small amount of debt, if your current income and assets are not reachable by your creditors, or if you anticipate that you will go deeper into to debt in the future. However, bankruptcy may be right for you if you are in danger of losing important property, such as your home, car or utility services.
What Can Bankruptcy Do For Me?
Things a bankruptcy is usually able to do:
- Get rid of the legal duty to pay most or all of your debts. This is called a "discharge" of debts. It is designed to give you a new financial start.
- Stop foreclosure on your house or repossession of a car or other property and give you a chance to catch up on missed payments. (However, bankruptcy does not automatically get rid of mortgages and other liens on your property).
- Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
- Restore or prevent termination of utility services.
- Challenge the claims of creditors who have committed fraud or who are trying to collect more than you really owe.
- Keep certain property that is exempt under California law.
What Can't Bankruptcy Do For Me?
Things a bankruptcy is usually not able to do:
- Get rid of some rights of "secured" creditors. A "secured" creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken.
- Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, student loans, court restitution orders, criminal fines, and some taxes.
- Protect co-signers on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay the loan.
- Discharge debts that are created after you file for bankruptcy.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
FAQs
Can I owe something after receiving a bankruptcy discharge of debt?
Yes. You can keep your exempt property and anything you get after the bankruptcy is filed. But, if you get an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt property.
How does bankruptcy affect my credit rating?
A bankruptcy will remain on your credit reports for 10 years. However, there are ways to rebuild your credit after a bankruptcy, such as obtaining a secured credit card or paying your new debts on time. A bankruptcy will adversely affect your credit rating but there are ways to minimize the damage and rebuild your credit over time.
What is the automatic stay?
The automatic stay arises the instant a bankruptcy petition is filed. This automatic stay prohibits ALL creditors from taking ANY action against the debtor or any of the debtor's property based on debts prior to the bankruptcy. Violation of the automatic stay by a creditor is a serious offense. Creditors may ask the bankruptcy court for relief from the automatic stay and may be granted that relief under certain circumstances.
Which debts are generally not dischargeable through a bankruptcy?
- Money owed for child support or alimony, fines, and some taxes;
- Debts not listed on your bankruptcy petition;
- Loans you got by knowingly giving false information to a creditor;
- Debts resulting from "willful and malicious" harm;
- Student loans owed to a school or government body, except if the court decides that payment would be an undue hardship;
- Mortgages and other liens which are not paid in the bankruptcy case (although bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor);
- Debts for non-essential luxury goods of more than $550 or credit card cash advances totaling $825.00 that were made within 90 days before filing your bankruptcy petition.
What are exemptions/exempt property?
In a bankruptcy, every item of property you own will be classified as either exempt or nonexempt property. Exempt property is property that you are allowed to keep. Nonexempt property is property that you will have to give to the bankruptcy trustee and may be used to pay your creditors. Exempt property is determined by California law, in particular California Code of Civil Procedure §703 and §704. California has 2 different set of exemptions to choose from. You must choose one set of exemptions and cannot mix-and-match the exemptions. California does not allow the use of the Federal Bankruptcy exemptions, but allows the use of Federal Supplemental Bankruptcy exemptions.
What is secured debt and unsecured debt?
Secured debt is debt that a person uses assets as collateral for the debt. Most common types of secured debt is using your house as collateral for a home loan and using your car as collateral for a car loan. If you fail to make payments, the creditor can then take your collateral, such as foreclosing your home or repossessing your car.
Unsecured debt is a debt that you agreed to by contract but did not put up any assets as collateral. Common types of unsecured debt are credit card debt, medical bills, lawsuits, leases and contracts, and personal loans.
Another type of debt is something known as a non-purchase-money security interest (NPMSI). With this type of debt the creditor takes a security interest in an asset as collateral. The difference between a secured debt and a NPMSI is that with a secured debt, the debtor buys the collateral with funds from the secured creditor (buys a house with funds obtained by using the house as collateral). With a NPMSI, the debtor already owns the collateral. An example would be a person using a personal item such as jewelry to obtain a $3000.00 loan. NPMSI can be fully or partially eliminated through bankruptcy and the process of lien avoidance.
Who is the bankruptcy trustee?
A bankruptcy trustee is a person appointed by the United States Trustee to represent the debtor's estate during the bankruptcy process. The trustee is responsible for evaluating your petition and making recommendations in accordance with the law. In a Chapter 7 bankruptcy, the trustee determines if there are assets to sell in order to pay creditors and also reviews the debtors claimed exemptions and which debts are to be discharged. In a Chapter 13 bankruptcy, the trustee has the same responsibilities as a Chapter 7 trustee, with the additional responsibility of dispersing payments made by the debtor under the Chapter 13 payment plan.
Where should I file my bankruptcy?
Your bankruptcy should be filed with the federal bankruptcy court in the district where you have resided for the greater part of the 180 day period prior to the date your case is filed.
Do I have to appear in court?
Yes, you have to go to a bankruptcy proceeding at least once. This proceeding is called the "§341a Meeting" or the "Meeting of creditors." At this proceeding you will appear before the bankruptcy trustee and any creditor who chooses to come. Though a formal proceeding, many times this meeting will be a short and simple procedure where you are asked a few questions. Occasionally complications from your bankruptcy petition arise and you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the court or from your attorney if you obtain one.
How long is the bankruptcy process?
No two bankruptcy cases are alike, so it may be hard to estimate how long it takes to have your debts discharged. Generally in California, the Meeting of the Creditors is scheduled with 30-45 days after filing your bankruptcy petition. Following the Meeting of the Creditors and if not complications arise, the bankruptcy court will issue a discharge order within 3-4 months in a Chapter 7 case. For a Chapter 13 case the discharge order will be issued within 3-5 years, depending on how long it takes to complete the Chapter 13 payment plan.
What else I should know?
Utility services -- Public utilities, such as the electric company, cannot refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service.
Discrimination -- An employer or government agency cannot discriminate against you because you have filed for bankruptcy.
Driver's License -- If you lost your license solely because you couldn't pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back.
Co-signers -- If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Contact Us
Phone Numbers:
Main line: 1-949-735-8499
Fax: 1-888-624-5393
1st California Law Office:
1212 N. Broadway St. 243, Santa Ana, California, 92701
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Chapter 7
Chapter 7 bankruptcy is usually the quickest and least burdensome of the major types of bankruptcy. Costs and fees vary depending on the number of creditors you have, the complexity of your case, and other factors.
Chapter 7 Bankruptcy is often referred to as liquidated bankruptcy. In Chapter 7 bankruptcy, most unsecured debt is eliminated and an individual can retain their exempt assets. Exempt assets and property are determined by California law. Property which is non-exempt is sold by the bankruptcy trustee and the money is paid to creditors. It is important to use all available exemptions to protect as much property as possible from being sold by the bankruptcy trustee.
Chapter 7 bankruptcies are not available to everyone, as a person must qualify for Chapter 7 bankruptcy by passing the "means test." The means test is used to identify those who have the ability to pay money to some of their creditors. The means test is based on the debtor's monthly earned income. If the debtor makes less than the median income for the State of California, they may qualify for Chapter 7 Bankruptcy and do not need to complete a full means test. However, if the debtor's income is over the median income for the State of California, they must complete and pass a full means test in order to qualify for Chapter 7 bankruptcy relief.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Chapter 13
A Chapter 13 bankruptcy is a reorganization of debt, allowing you to repay all or a portion of your debt through a Chapter 13 plan, while protecting your assets. Chapter 13 bankruptcy is similar to debt consolidation, but it permits you to pay off your unsecured debt (except student loans) without accruing interest and without having to deal with harassment from your creditors. Under a typical Chapter 13 repayment plan, you make monthly payments to a court appointed bankruptcy trustee for three to five years. The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the value of your assets. The bankruptcy trustee distributes the money to your creditors.
A Chapter 13 bankruptcy is very powerful, as it can stop a home foreclosure, and allow you to make up missed mortgage payments and keep your home. A Chapter 13 bankruptcy also stops vehicle repossession, and in most instances allows you to recover a vehicle that has already been repossessed. It stops interest accruing on personal debt, including back taxes. The filing of a Chapter 13 bankruptcy stops all collection activity though the automatic stay. The automatic stay remains in effect during the life of the case, unless the court orders otherwise.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Which chapter of bankruptcy is right for you?
Chapter 7
A Chapter 7 bankruptcy can be very quick and uncomplicated. It allows you to eliminate your dischargeable debts without doing any repayment. Common issues with Chapter 7 bankruptcies are:
- In a few cases your assets may be at risk, depending on their value and whether you have sufficient exemptions available to protect them. If these assets are not protected by exemptions, the bankruptcy trustee may take them and use them to pay your creditors.
- You may not be eligible for Chapter 7 if your income is too high and you do not pass the means test.
Chapter 13
Chapter 13 can discharge some debts like a Chapter 7 does, but also gives more options. However a Chapter 13 is more expensive and time consuming than a Chapter 7. Typically with a Chapter 13 you can:
- Keep all your assets which would you would not have been able to do under a Chapter 7.
- Remove certain liens against property through the process of lien stripping
- Avoid foreclosure and repossession and catch up on past due payments on mortgages, car loans, etc.
However, In a Chapter 13 is that you must successfully complete a court-approved repayment plan over 36-60 months before you receive your discharge of debts from the court.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Preparing for Bankruptcy
Once you have filed for bankruptcy, the trustee and possibly your creditors will look into your assets and debts incurred prior to your bankruptcy filing. Some actions you take may "red-flag" your petition and raise question or objections from the trustee or your creditors. In the worst case scenario, this may lead to the dismissal of your bankruptcy petition or result in some of your debts being ruled as non-dischargeable.
Things to be aware of prior to filing for bankruptcy are:
- Debts for non-essential luxury goods more than $550.00 made within 90 days before filing your bankruptcy petition or credit card cash advances totaling $825.00 made within 70 days before filing your bankruptcy petition are non-dischargeable by law.
- "Out of the ordinary" credit card purchases made prior to filing for bankruptcy may raise issues with the trustee and your creditors. "Out of the ordinary" purchases can be anything from vacations, jewelry, or even tax payments. It is recommended that you limit your credit card purchases to only essential items if you are considering bankruptcy.
- Credit card purchases made after consulting with a bankruptcy attorney can possibly be challenged by the credit card company. In general, it is best to stop using your credit cards once you have decided to file for bankruptcy.
- Another "reg-flag" is the opening of multiple credit card accounts or multiple loans within a year of filing for bankruptcy. This is especially troubling if these credit cards or loans were used to purchase exempt property and may lead to objections from the trustee or your creditors.
- Be careful with transfers of property in preparation of bankruptcy, as some of these transfers may be considered fraudulent. These types of transfers include: selling property at less than fair market value, selling property to an "insider" such as a close friend or relative, selling property but then keeping possession of the property, giving away property which leaves unable to pay your debts, or trying to conceal or hide property from your creditors.
- Avoid "sharp-dealings" with your creditors. "Sharp-dealings" are when you take steps to keep your property away from creditors. Examples of this include selling property out from a creditor's interest or transferring assets once a creditor sues and gets a judgment against you.
- Do not have your assets at an institution that you owe money. That institution may have a right to take your assets to pay off your debt. For example, if you have a credit card debt with a bank and a checking account with the same bank, the bank may have the right to take cash from your checking account to pay off your credit card debt. Because of this "set-off" it is recommended that you move your cash and assets to an institution that you do not owe money to.
Most important thing is to be honest. Be truthful and forthcoming with your attorney, the bankruptcy court and your creditors. Failure to be completely honest can have many negative consequences that will not only affect your bankruptcy case but can also lead to criminal charges.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Bankruptcy & Foreclosure
A Chapter 7 bankruptcy stops the foreclosure process through the use of the automatic stay. The automatic stay will prevent foreclosure during the bankruptcy process unless the lender seeks court approval to continue the foreclosure process. The automatic stay will give you time to catch up on your mortgage payments or to work out an arrangement with your lender. However, a Chapter 7 bankruptcy does not get rid of the right of a mortgage holder to foreclose your house if you are not current with your mortgage payments.
Under a Chapter 13 bankruptcy you will propose a plan to repay the amount you fell behind on the mortgage. You will also begin to again pay your regular mortgage payments, which must be accepted by your mortgage company. While under Chapter 13 bankruptcy, the debtor is responsible for making payments to the bankruptcy payment plan AND regular mortgage payments.
However, in a Chapter 13 is that you must successfully complete a court-approved repayment plan over 36-60 months before you receive your discharge of debts from the court.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
About us
1st California Law Inc. is committed to providing you the best legal service possible and to helping you in your time of financial need. At 1st California Law Inc., we only practice consumer bankruptcy law as our mission is to help individuals who need debt relief. At 1st California Law Inc., an attorney will personally handle your bankruptcy petition and will provide quality representation and advice throughout the bankruptcy process. An attorney will always be available to respond to whatever questions or concerns you may have. We will handle your bankruptcy case with the utmost professionalism and help you in your time of financial need.
Check us out on Facebook and Twitter by clicking on either links below.
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Links/Resources
United States Bankruptcy Code
Federal Agencies
- United States Bankruptcy Court, Central District of California
- United States Bankruptcy Court, Southern District of California
- United States Bankruptcy Court, Northern District of California
- United States Bankruptcy Court, Eastern District of California
- United States Trustee
- United States Department of Justice
- United States Courts
- The Consumer Financial Protection Bureau
Other Helpful Links
- National Foundation for Credit Counseling
- Consumer Credit Counseling of Orange County
- Loan Modification Assistance
- Zillow-Home Value Estimates
- Justia-For legal information
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Required Documents for Bankruptcy
In order to successfully complete your bankruptcy petition and receive your discharge, you will most likely need the following items/documents. As no two cases are alike, your attorney or the bankruptcy court may require additional documents from you.
- Payment of the bankruptcy filing fee
- Payment of your attorney retainer fee (if you obtain one)
- Original Social Security Card
- Valid photo identification such as California Driver's License
- Complete the required credit counseling class before you file your petition
- Complete the financial management class following your ¤341 creditors meeting
- Two months pay stubs from all parties. (If you are self-employed provide a "Profit and Loss Statement for six months)
- Two months financial statements from all parties for: checking accounts, savings accounts, investment accounts, 401K accounts, money markets accounts, etc. (If self- employed provide six months of statements for all accounts)
- Most recent tax returns (If self-employed provide business and personal tax returns for past 2 years)
- All W-2's and 1099's
- Most recent mortgage statement, including any delinquency notices, default papers, and foreclosure related notices for all properties and mortgages.
- Any lawsuits, foreclosures, or repossession documents
- Lease or rental agreements
- Award Letter for Disability, Social Security, Pension, Retirement, or Military reflecting the current amount you are receiving.
- Any job termination paperwork
- Documentation for proof of alimony, child support, or child support
Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Glossary of Bankruptcy Terms
Adequate Protection
Payment to a secured creditor to protect the value of the creditor's lien during the bankruptcy, a proceeding from loss due to depreciation, or non-payment of a senior lien.Adversary Proceeding
A lawsuit arising in, or related to, a bankruptcy case that is commenced by filing a complaint with the bankruptcy court.Assets
Every form of property owned by the debtor. These can include intangible items as well, such as stock options and business goodwill. All assets must be disclosed by the debtor.Assume
An agreement to continue performing duties under a contract or lease.Automatic Stay
An injunction that automatically stops lawsuits, foreclosure, garnishments, and other collection activity against the debtor the moment a bankruptcy petition is filed.Avoidance
Process where some types of liens can be eliminated; sometimes called "lien stripping."Bankruptcy
A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).Bankruptcy Code
An informal name for the United States Code, Title 11; the federal bankruptcy lawBankruptcy Estate
All equitable and/or legal interests of the debtor in real and personal property at the time of the bankruptcy filing.Bankruptcy Judge
A judicial officer of the United States Bankruptcy Court who has the decision-making power over federal bankruptcy cases.Bankruptcy Petition
A formal request for the protection of the federal bankruptcy laws.Bankruptcy Trustee
An individual or corporation appointed in all Chapter 7 and Chapter 13 cases to represent the interests of the bankruptcy estate and the debtor's creditors.Chapter 7
The most common form of bankruptcy, providing for "liquidation" of the debtor's non-exempt property and distribution of the proceeds to creditors. It is available to individuals, married couples, partnerships, and corporations.Chapter 7 Trustee
A person appointed in a chapter 7 case to represent the interests of the bankruptcy estate and the unsecured creditors. (The trustee's responsibilities include reviewing the debtor's petition and schedules, liquidating the property of the estate, and making distributions to creditors.The trustee may also bring actions against creditors or the debtor to recover property of the bankruptcy estate.)
Chapter 11
A reorganization proceeding, involving a business, individual or married couple that includes a reorganization plan. Creditors are paid in whole or in part over time.Chapter 13
A repayment plan providing adjustments of debts for individuals who have a regular income. It, normally spans three to five years.Chapter 13 Trustee
A person appointed to administer a chapter 13 case. (A chapter 13 trustee's responsibilities are similar to those of a chapter 7 trustee; however, a chapter 13 trustee has the additional responsibilities of overseeing the debtor's plan, receiving payments from debtors, and disbursing plan payments to creditors.)Claim
A creditor's assertion of a right to payment from a debtor or the debtor's property.Collateral
Property that is subject to a lien. A creditor with collateral rights is considered a secured creditor and has additional protection for the claim secured by the collateral.Confirmation
The court-ordered plan approval for repayment of debts in a Chapter 11 or 13 filing.Consumer Debt
Debts incurred by an individual for personal, family, or household purposes, as opposed to business debts.Contingent Claim
A claim that may be owed by the debtor under certain circumstances, such as being a co-signer on another person's loan if that person defaults.Creditor
A person or organization to whom the debtor owes money, or that claims to be owed money by the debtor.Credit Counseling
Individual debtors must attend credit counseling before filing under any bankruptcy code.Current Monthly Income
The average monthly income received by the debtor over six calendar months before the filing of the bankruptcy case, including regular contributions to household expenses from non-debtors and income from the debtor's spouse if the petition is a joint petition, but not including social security income and other payments made because the debtor is victim of certain crimes.Debtor
The entity that is the subject of the bankruptcy case (individual, couple, partnership, or corporation).Discharge
The elimination of debt through a bankruptcy case. A discharge releases the debtor from personal liability for certain debts and prevents further action from creditors who are owed these debts.Dischargeable Debt A debt that can be eliminated in bankruptcy, according to the bankruptcy code.
Equity
The value of a debtor's property after liens and other interests in the property are deducted.Executory Contract or Lease
Generally includes contracts or leases under which both parties to the agreement have duties remaining to be performed. (If a contract or lease is executory, a debtor may assume it or reject it.)Exempt
Property that a debtor may prevent creditors from recovering.Exemption
The property that a debtor is permitting to keep from creditors. It is legally beyond the reach of creditors. Given by California law.Fiduciary
One who is entrusted with duties on behalf of creditors. A fiduciary's good faith, loyalty, and diligence are of the upmost importance.Fraudulent Transfer
Transfer of the debtor's property made with the intention of defrauding, or for which the debtor receives less than the transferred property's value.Indemnify
To guarantee against any loss which another may suffer. Also called a "hold harmless" clause.Insider (of individual debtor)
Any relative of the debtor or of a general partner of the debtor; partnership in which the debtor is a general partner; general partner of the debtor; or corporation of which the debtor is a director, officer or person in control.Joint Petition
One bankruptcy petition filed by a husband and wife together.Lien
An interest upon specific property that secures a debt or performance of an obligation. It may be voluntary, such as a mortgage, or involuntary, such as a tax lien.Liquidated Claim
A creditor's claim for a fixed amount of money.Liquidation
The sale of a debtor's property with the proceeds to be used for the benefit of creditors.Means Test
A screening test intended to determine whether or not a debtor is truly unable to repay their debts. Those who fail the test may be converted to another chapter of bankruptcy.Meeting of Creditors
A meeting at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs. This is sometimes also termed a "341 meeting."Motion To Lift Automatic Stay
A request by a creditor to allow the creditor to take an action against a debtor or the debtor's property that would otherwise be prohibited by the automatic stay.No-Asset Case
A chapter 7 case where no assets are available to satisfy any portion of the creditors' unsecured claims.Nondischargeable Debt
A debt that cannot be eliminated in bankruptcy.Objection to Discharge
A trustee's or creditor's objection to the debtor's being released from personal liability from certain discharged debts.Objection to Exemptions
A trustee's or creditor's objection to a debtor's attempt to claim certain property as exempt, i.e., not liable for any prepetition debt of the debtor.Party In Interest
A party who is actually and substantially interested in the subject matter, as distinguished from one who has only a nominal or technical interest in it.Personal Property
Assets not associated with real property, such as automobiles, furniture, jewelry, etc.Petition
The document initiates a bankruptcy case, and institutes an "automatic stay."Plan
A debtor's detailed description of how the debtor proposes to pay creditors' claims over a fixed period of time.Postpetition Transfer
A transfer of a debtor's property made after the commencement of the bankruptcy case.Priority
A ranking of unsecured claims by the bankruptcy code that determines which claims have a higher priority than others.Priority Claim
This type of claim is entitled to be paid ahead of other secured claims that do not have priority status.Proof of Claim
The form filed with the court describing the reason a debtor owes a creditor money.Property of the Estate
All legal and equitable interests of property of the debtor that is usually sold by the trustee.Reaffirmation Agreement
An agreement by a Chapter 7 debtor to continue paying a dischargeable debt after the bankruptcy, usually for the purpose of keeping collateral or mortgaged property that would otherwise be subject to repossession.Schedules
Lists submitted by the debtor that includes assets, liabilities, and other financial information to begin a bankruptcy case.Secured Creditor
An individual or business holding a claim against the debtor that is secured by a lien on property or that is subject to a right of setoff.Secured Debt
Debt backed by a mortgage, pledge of collateral or other lien, for which the creditor has the right to pursue the pledged property upon default.Statement of Financial Affairs
A series of questions the debtor must answer in writing regarding sources of income, transfers of property, lawsuits by creditors, etc.Statement of Intention
A declaration made by a Chapter 7 debtor concerning plans for dealing with consumer debts that are secured by property of the estate.Substantial Abuse
The characterization of a bankruptcy case filed by an individual whose debts are primarily consumer debts where the court finds that the granting of relief would be an abuse of chapter 7 because, for example, the debtor can pay its debts.Transfer
Any mode or means by which a debtor disposes of his/her property.Unsecured Claim
A claim or debt for which a creditor holds no special assurance or payment, such as a mortgage or lien; a debt for which credit was extended based solely upon the creditor's assessment of the debtor's future ability to pay.Unliquidated Claim
A claim for which a specific value has not been determined.Unscheduled Debt
A debt that should have been listed by a debtor in the schedules filed with the court, but was not filed.341 Meeting
A meeting at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs.Do not hesitate to call 1st California Law to see how we can assist you. You may be eligible for bankruptcy relief. Please call 1-949-735-8499 for a free attorney consultation.
Debt Negotiations
Debt negotiation is a process where you and your "Creditor" agree on a reduced balance of your debt and your creditor regards your debt as paid in full. This should not be confused with debt consolidation, where the debtor makes monthly payments to the debt consolidator, who takes a small fee and passes the rest on to the creditors. With debt negotiations through 1st California Law, you will meet with an attorney and discuss your current financial situation. Following this, we will develop a repayment and debt reduction plan that suits your needs. 1st California Law will then directly contact your creditors, explain your financial hardship, and begin the negotiation process to reduce your debts and preserve your credit rating.
How are we different from other debt settlement companies? 1st California Law will not ask you to enroll in a program with monthly fees. We will not advise you to stop paying your creditors either. Rather, we will directly contact your creditors and formulate debt workout plan with your creditors. You will only pay for results achieved. Our ultimate goal is to provide you with the most complete and affordable debt resolution possible.
Call 1-949-735-8499 for a free debt negotiations consultation.
Tax Settlement
Thousands of people find themselves with tax debt or the inability to pay their taxes. There are ways to get relief from your tax liabilities. The IRS offers tax settlements and other programs to individuals who simply cannot pay their taxes due to their financial situation. At 1st California Law, we will review your financial situation and determine which tax settlement program would be most appropriate for you. Following this, we will help you apply for tax relief with the IRS, explaining your financial hardship and providing all necessary forms and documentation.
Types of tax relief offered by the IRS include:
- Tax debt reduction through Offers in Compromise.
- Partial and full payment installment agreements.
- Abatement/reduction of tax penalties and interest.
- Suspension of tax collection.
Call 1-949-735-8499 for a free tax settlement consultation with an attorney.
Credit Repair
1st California Law can help you improve you credit score. Through our credit repair service, we carefully review your credit report with you and identify any errors. Following this review, we contact the credit reporting agencies (Experian, Equifax, and TransUnion) to dispute any erroneous or questionable items on your credit report. Our law firm will send attorney drafted dispute letters to the credit agencies, who are then required to investigate the disputed items. If the credit agency cannot verify the disputed item, they must then fix your credit report. 1st California Law will be sure that all of your correspondence with the credit agencies is complete, persuasive, and contains all the necessary documentation.
We can help you with inaccurate, untimely, erroneous, an unverifiable items on your credit report. These items can be:
- Questionable collections.
- Questionable late payments.
- Debts you have settled.
- Noncompliant/obsolete notations.
- Identity theft issues.
Call 1-949-735-8499 for a free credit repair consultation.
Loan Modification
Loan modification is the process by which the borrower and the lender negotiate changes in the current home loan. The goal of a loan modification is to bring the borrower's monthly payments to an amount the borrower can afford based on their current financial position. Loan modifications can reduce your monthly mortgage payment through interest rate reductions, principal reductions, or extending the mortgage beyond its current maturity. Loan modification are usually granted if the borrower can show some sort of financial hardship such as loss of income, adjustable interest rate increase, or loss of equity in the property. Loan modifications should never be guaranteed by any loan modification service provider, as it is ultimately the lender's decision as to whether or not to grant a loan modification. Loan modifications can be a lengthy and frustrating process and having experience negotiating with the lenders often helps. At 1st California Law we can assist you with the loan modification process and try to lower your monthly mortgage payments.
Call 1-949-735-8499 for a free loan modification services.
Foreclosure Postponement
If you are facing a foreclosure sale date, 1st California Law may be able to postpone your sale date. Through a process of challenging the trustee sale of your home, we may be able to temporarily stop your foreclosure sale date. By challenging the trustee sale date (also known as trustee verification), we make sure that the trustee overseeing your foreclosure sale has complied with all applicable laws and procedures. As the trustee takes time to respond to the various challenges, your foreclosure will be postponed for as long as the time necessary for the trustee to respond. This can result in your foreclosure sale date being postponed for multiple months.
Call 1-949-735-8499 for more information about foreclosure postponement.
Business Entity Formation
Creating a new business can be a complicated endeavor. People are often confused as to which type of business entity to form their business as. Choosing the right type of entity has numerous consequences, including tax issues, liability issues, and other legal obligations based on your profession. As these things must be taken into account, as well choosing an entity that best fulfills your business needs. At 1st California Law, we will explain the advantages and disadvantages of the various business entities based on your business needs. We will answer any questions and look into any issues you may have in order to help you the best business entity for your business needs. We will also help you with all your Secretary of State filings and other business entity formation requirements. We also offer expedited filing services so that you can form your business in as little as 48 hours.
Various types of business entities include:
- Corporations.
- Closed Corporations.
- Professional Corporations.
- Non-profit Corporations.
- General Partnerships.
- California Limited Partnerships.
- Limited Liability Partnerships.
- Limited Liability Companies.
