Bankruptcy Q & A

Can a second mortgage on a home be eliminated through Bankruptcy?

Yes, most second and third mortgages can be eliminated through the Bankruptcy process if the individual or family can prove no equity in the residence.

Who can file Bankruptcy?

Any individual, couple, partnership or corporation can file a Bankruptcy proceeding in the State of California.

How long does Bankruptcy take from start to finish?

Some Bankruptcies can take as little as three months start to finish. Reorganization Bankruptcies can take anywhere from three to five years.

Can someone file Bankruptcy and keep all of their possessions?

Yes, generally the Bankruptcy code allows for all possessions to be exempted and kept in the debtor’s possession while all debt is eliminated.

How much does a Bankruptcy cost?

The fees can vary dramatically depending on the sophistication of the matter. Some Bankruptcies can be completed for as little as $1,000.00, others can be more.

Can a repossession, wage garnishment and lawsuit be eliminated with Bankruptcy?

Yes. The Bankruptcy code allows for an immediate stay (or protection) from all collection activity immediately when the Bankruptcy is filed.

Can only one spouse in a marriage file Bankruptcy if the other does not want to?

Yes, one spouse can file while the other does not.

Can I get rid of an unwanted car loan in a Bankruptcy?

Yes. The Bankruptcy code allows for elimination of an unwanted car loan as long as the car is given back.

Can I keep my motor home, boat or other luxury items while still eliminating other debt?

Yes. A Bankruptcy filing will allow for one to retain luxury items depending on their value.

Do I have to go to a court hearing before a judge when I file Bankruptcy?

Usually not. Most Bankruptcies only require an appearance at a meeting which is overseen by a Bankruptcy Trustee, not a judge.

Can I file Bankruptcy in the town I recently moved to?

Yes. There are some residency requirements but normally only 90 days is required.