Irvine Bankruptcy Lawyers
Helping Clients Achieve Debt Relief
Debt challenges are common among consumers in the U.S. The cost of living is always rising, and all it takes is one medical emergency or one lost job to go into serious debt. If you find yourself facing a challenge with consumer debt, bankruptcy can help you get the relief you need. All you need to do to get started is find an experienced lawyer to guide you through the process.
Our attorneys at Guardian Litigation Group, LLP can provide such guidance, as we have for many previous clients in bankruptcy cases. Previously, we helped those who filed for Chapter 7 and Chapter 13. We understand that problems with debt are sensitive, which is why we strive to ensure each client understands what they can expect at each step along the way. Anything can happen in bankruptcy court, but our goal is to help our clients secure the kind of debt relief they need to move forward with their lives.
If you want to learn more about how our bankruptcy lawyers in Irvine can help, contact us online or call (949) 312-4226 now.
How Are Chapter 7 & Chapter 13 Bankruptcy Different?
The main difference between these types of bankruptcies is whether the focus is on the discharge of debt through the liquidation of property, as in Chapter 7, or a reorganization of debt as in Chapter 13.
When someone is in Chapter 7 bankruptcy, the court-appointed bankruptcy trustee reviews the filer’s debts and assesses property that can be liquidated to pay off creditors. California provides a number of exemptions that Chapter 7 filers can use to protect important property, such as equity in their homes or vehicles. In many cases, a discharge of debt (most commonly unsecured debt from credit cards, medical bills, personal loans, and more) can be achieved without a devastating liquidation.
During Chapter 13 bankruptcy, debt is reorganized into a more manageable monthly repayment plan. The plan can last anywhere from three to five years, but the focus is on repaying creditors, over time, what was owed before filing for bankruptcy. In doing so, arrears on debt secured by collateral (such as a mortgage or auto loan) can be satisfied without having to give up your home or vehicle.
If you are unsure whether Chapter 7 or Chapter 13 bankruptcy can help you, contact one of our Irvine bankruptcy attorneys at Guardian Litigation Group, LLP for a free consultation!
Will I Lose Everything in Bankruptcy?
No. Bankruptcy exemptions make it possible to protect a lot of property from liquidation in Chapter 7. You may have to forfeit certain luxury items to your bankruptcy trustee, but you can use exemptions to safeguard things such as your home equity, clothing, furniture, home appliances, tools of your trade, and other essential items.
Is Bankruptcy Bad for My Credit Score?
Your credit score will take a hit after bankruptcy, but developing good spending habits and using credit wisely can help you rebuild a healthy credit score faster than you think.
Also, bankruptcy only shows up on your credit report for about 10 years. This can make it more difficult to secure credit, but far from impossible. You might be surprised how many creditors are willing to look past your bankruptcy and take you on as a customer.
How Long Does Bankruptcy Take?
It depends on the chapter of bankruptcy. Chapter 7 cases can resolve within three to four months of filing. Chapter 13 cases can take up to five years or longer, but this is mostly due to the duration of the repayment plan.
What’s the First Step to Take in Bankruptcy?
If you’re thinking about seeking debt relief through bankruptcy, the first step is to retain experienced legal counsel. By getting in touch with Guardian Litigation Group, LLP, you can take your first step today. We offer all potential clients a free consultation so they can learn more about our bankruptcy lawyers in Irvine and how we can support their legal needs.
For more information and to request your free initial consultation, contact us online now.