Costa Mesa Bankruptcy Lawyer
Practice Areas
Experienced Bankruptcy Lawyers Serving Costa Mesa, California
Facing bankruptcy can be intimidating, but a Costa Mesa bankruptcy lawyer from Marshack Hays Wood is well-equipped to handle even the most complex legal matters. No matter the type of bankruptcy clients need to file, we are equipped to handle it.
Our Orange County bankruptcy law attorneys offer a free consultation for those considering hiring a law firm to assist with filing for bankruptcy. We will support you through the pain of outstanding debts, wage garnishments, and other financial issues.
Prospective clients can contact our office for an initial free consultation with a lawyer at (949) 333-7777 or complete the online form.
Understanding Bankruptcy in Costa Mesa
It is important for clients to understand the ins and outs of bankruptcy law in Costa Mesa. It can be a daunting task to learn about a complex situation. Our firm is here to take clients through the process.
Clients need a team of experienced consumer bankruptcy attorneys on their side to make the process easier.
What Does Filing Bankruptcy Mean in California?
Filing for bankruptcy in Orange County, California, is a way to obtain a fresh financial start when dealing with credit card debt, medical bills, or other unsecured debts that cannot be repaid. Depending on the type of bankruptcy relief you are filing, our Costa Mesa attorneys can guide you through the proceedings.
The type of bankruptcy you file in Costa Mesa determines the meaning. Our attorneys will review your list of creditors, assets, obligations, and other relevant information to determine which strategy and chapter your lawyer will file. Once you have completed all the necessary steps to file for bankruptcy, such as completing credit counseling and meeting with your trustee, your debts can be discharged.
How a Bankruptcy Filing Provides Debt Relief
When you file for bankruptcy with a lawyer in Costa Mesa, California, you can find relief for your financial difficulties. Whether it’s wage garnishments or harassing creditors that are overwhelming you, filing for bankruptcy can help you overcome these challenges.
For immediate relief, an automatic stay will be implemented to prevent your creditors from contacting you during litigation. Depending on the chapter of bankruptcy you file, you may either liquidate your assets or initiate a repayment plan.
Federal Bankruptcy Law vs. California Exemptions
California bankruptcy laws differ slightly from federal bankruptcy laws. Filers in Costa Mesa, California, are required to use one of the two bankruptcy exemption systems. Federal law does not allow California bankruptcy filers to use federal exemptions. To qualify for California’s exemptions, you must have lived in the state for at least 730 days before filing.
Two systems fall under California exemptions when filing in the state: System 1 and System 2. System 1 is better for homeowners, and System 2 is better for renters. Homeowners in Costa Mesa have a bankruptcy homestead exemption between $300,000 and $600,000. This will be automatically applied upon filing for bankruptcy.
Our team of attorneys is well-versed in new bankruptcy law, with years of experience to help you make the best financial decision.
Types of Bankruptcy Cases We Handle
There are multiple types of bankruptcy, also known as chapters. Our Orange County bankruptcy attorneys can help you through numerous types of bankruptcy depending on your financial situation. Our legal representation will handle your bankruptcy court case so you can start with a clean slate.
Chapter 7 Bankruptcy in Costa Mesa
Facing bankruptcy in Costa Mesa can be intimidating, and you need great advice from experienced attorneys. California law suggests that by filing Chapter 7, you can eliminate your unsecured debts, provided you are eligible. In some cases, if your income is sufficiently low, you may not be required to surrender your assets or personal property.
There are a few steps it takes to file for and have a bankruptcy judgment.
- Gather your financial information and any documents
- Complete credit counseling before filing
- Work with an attorney on form preparation
- File your petition with the court and pay your fees
- After you are assigned a trustee, send them all the documents
- Take a debtor education class
- Attend a 341 meeting of creditors; this is not optional
- Wait for your judgment of discharge
An Orange County Chapter 7 bankruptcy attorney can help you find bankruptcy relief from your creditors through a plan and an automatic stay.
Who Qualifies for Chapter 7 Bankruptcy?
Based on federal and California law, not every client who wants to file for Chapter 7 will qualify. Several factors can impact your ability to file for bankruptcy. Filing has income limits that must be met to be eligible. Since it is considered a liquidation bankruptcy, filers must pass a California bankruptcy means test to prove they qualify for this type of bankruptcy.
The Role of the Means Test
Deciding to file for Chapter 7 bankruptcy depends on whether you can pass a means test, which is not an actual test at all. It is a way for your attorney to assess your assets, determine what you owe to creditors, and calculate your income or available funds.
In California, bankruptcy law requires the means test to include a median income test, which determines your income for the last six months. The first part of the test checks whether your average income is below the state median.
If your income is higher than the median, you will continue with a disposable income test. This calculation determines if you have enough disposable income to pay off your debt.
Dischargeable vs. Non-Dischargeable Debts
If you are considering filing for bankruptcy, it is essential to understand the law and what it means to have your debt discharged. When you file for bankruptcy, your legal team will create your case and ask the judge to discharge your financial obligations. This generally eliminates the client’s personal liability, meaning no repayment is required.
In Costa Mesa, whether the debts you currently owe are dischargeable or non-dischargeable depends on their type. Most debt that is eligible for Chapter 7 bankruptcy discharge is unsecured debt, including credit card bills, medical bills, and personal loans.
Under federal law, non-dischargeable debts are debts that you may still have to pay after your judgment. These debts can include back family support, DUI debts, traffic tickets, restitution, tax obligations, or debts you forgot to list in your bankruptcy papers.
Your discharge may be denied for several reasons, including fraud, transferring funds to other accounts, or acting in bad faith.
Chapter 13 Bankruptcy in Costa Mesa
Chapter 13, also known as a wage earner’s plan, looks different than Chapter 7 in Southern California. Typically, this is the most common type of bankruptcy. This option is available to individuals, couples, or sole proprietors who earn too much to qualify for Chapter 7 but still require some financial relief.
This focuses on consolidating and reorganizing your debt. Filing bankruptcy through Chapter 13 generally works for those with a regular income and assets to protect. Those who file this chapter have an easier time stopping foreclosure. If you are considering this type of bankruptcy, speaking with an Orange County Chapter 13 bankruptcy lawyer can help you understand your next steps and determine whether this plan fits your financial needs.
How Chapter 13 Helps Reorganize Debt
Chapter 13 can help clients reorganize their debt and prevent foreclosure on their home. Our bankruptcy law attorneys can help you with your plan to consolidate and reorganize your debt. Through reorganization, a plan is created with your lenders to pay back what you owe. Most Chapter 13 plans include a monthly payment plan that lasts 3-5 years to help you manage your finances.
Repayment Plans and Asset Protection
Chapter 13 protects your assets, keeps your home from foreclosure, and focuses on an affordable payment for you. Through this chapter, clients can focus on creating a payment plan while protecting their assets, and attorneys can focus on litigation and court proceedings.
The law states that no non-exempt assets are unprotected. In California, you can keep all of your property, including your non-exempt assets. Clients are required to pay the value through your repayment plan.
In Costa Mesa, some non-exempt assets include a second home, a vacation home, fine art, jewelry, and even cash. Most clients are concerned about what happened to their home during this situation. Our law firm has years of experience in bankruptcy and real estate law, ensuring you achieve the best possible outcome.
When Chapter 13 May Be a Better Option Than Chapter 7
If your income is higher than California’s median income, bankruptcy attorneys can help you have a fighting chance for a financial fresh start without losing your assets or your home. Like other chapters, when you file, you are provided with an automatic stay, stopping your creditors from contacting you during litigation.
Your credit report will reflect a Chapter 13 bankruptcy judgment for 7 years, compared to other bankruptcies, which stay on your credit report for 10 years.
Chapter 11 Bankruptcy for Businesses in Costa Mesa
A bankruptcy attorney who understands the law can work closely with a business that wants to file for bankruptcy but continue to operate, generate income, and maintain meaningful relationships. Chapter 11 allows those with business issues to assess their needs with the assistance of a trust lawyer.
Business Reorganization and Debt Restructuring
Businesses in Costa Mesa can reorganize and restructure their finances to secure a more stable financial future. Through a reorganization or restructuring, companies can develop a payment plan to ensure their creditors are getting what is owed. An Orange County Chapter 11 bankruptcy lawyer can help your business get a fresh start.
Protecting Business Operations During Bankruptcy
Through Chapter 11 bankruptcy, a business can protect its operations. Clients can do this by continuing to operate and maintain relationships. While proceedings are happening in this type of bankruptcy, a company must have court approval before making significant decisions. Attorneys familiar with bankruptcies can help business clients navigate the process.
Large Debt Workouts for Commercial Entities
Companies with large amounts of debt can negotiate with their creditors to work out a mutually beneficial plan, rather than filing for bankruptcy, if that is not the best option for the business.
These complex negotiations can take place in court or out of court. Obtaining an attorney to guide you through the legal process provides valuable guidance, knowledge, and care, ensuring that everything is done correctly.
Alternatives to Bankruptcy in Costa Mesa, California
In Costa Mesa, filing for bankruptcy may not be the perfect option for you or your business. There are several options available to help you avoid bankruptcy court and still fulfill your obligations. A lawyer with the Marshack Hays Wood law firm can stand for your best interests and help you get a positive outcome.
Non-Bankruptcy Workouts and Debt Restructuring
Debt restructuring and non-bankruptcy workouts in Costa Mesa, CA provide an alternative for individuals or businesses that want to address debt without filing a bankruptcy case. These strategies focus on negotiating directly with creditors to modify payment terms, reduce balances, or extend deadlines in a way that supports long-term financial stability. A structured workout can help preserve credit standing, protect assets, and keep operations running while resolving debt obligations. This approach works best when addressed early and guided by clear financial documentation and realistic repayment goals.
Mediation and Alternative Dispute Resolution for Debt Conflicts
Mediation and alternative dispute resolution offer a practical way to resolve debt conflicts without litigation. This process can reduce costs, limit disruption, and lead to enforceable agreements that reflect the financial realities of both sides. For creditors and debtors alike, mediation supports timely resolutions while maintaining greater control over the outcome. Working with our experienced Southern CA alternative dispute resolution attorneys at Marshack Hays Wood allows parties to address disputes in a structured setting that encourages cooperation and problem-solving.
Loan Modifications and Creditor Negotiations
If a client is not interested in filing for bankruptcy, they have the option of going through a loan modification program. This is a tool for clients facing hardship to retain ownership of their property. Working with a California loan modification lawyer can help you request changes to existing loan terms, such as interest rates, payment schedules, and overall affordability, while you work to keep your property.
Our attorneys also handle creditor negotiations with a strategic, detail focused approach that prioritizes practical outcomes. By reviewing your full financial picture and communicating directly with creditors, they work to pursue terms that reduce pressure and create a workable path forward.
The Role of a Costa Mesa Bankruptcy Attorney
A Costa Mesa bankruptcy attorney plays a key role in helping you evaluate financial options and decide whether a bankruptcy filing makes sense based on your income, assets, and overall debt structure. This includes reviewing credit limits, outstanding balances, and creditor activity to determine how different strategies may affect your financial standing. With clear guidance, you can move forward with a plan that addresses debt while protecting your rights under California law.
Why Choose Marshack Hays Wood, LLP?
Marshack Hays Wood, LLP is a law firm of experienced bankruptcy attorneys in Costa Mesa, dedicated to serving your best interests. Our team of lawyers and support staff has the expertise to guide you through the bankruptcy court process without the stress of having to do it alone. Through bankruptcy relief, our team can help find the best solution to stop harassment from creditors.
Regardless of the type of bankruptcy, our Southern California firm is committed to representing you and your best interests. Our team has a diverse range of experiences in serving clients with bankruptcy-related needs in Costa Mesa. Call us today.
Debt Relief Help for Costa Mesa Individuals and Families
Bankruptcy can provide massive relief for Costa Mesa individuals and families who are going through financial issues. Filing for bankruptcy can provide clients with a break from creditors through an automatic stay while legal proceedings are happening.
Bankruptcy Services for Small Businesses and Corporations Across Orange County
Legal counsel through Marshack Hays Wood Attorneys at Law in Costa Mesa can walk you and your business through the bankruptcy court process. We understand the pain of considering bankruptcy as a small business or corporation in Orange County. Our attorneys are experienced in representing sole proprietors, partnerships, and limited liability partnerships (LLPs), and limited liability corporations (LLCs).
Recognized Leaders in Bankruptcy and Business Litigation
In Costa Mesa, our law firm can help you through the structured process for a financial resolution with a focus on both bankruptcy and business litigation matters. Recognized leaders in these practice areas, our attorneys assist in establishing a clear legal framework that allows a business to address disputes, creditor pressure, and financial challenges in an organized way. This approach supports informed decision-making and helps position the business to protect its operations while working toward long-term financial viability.
Speak With a Costa Mesa Bankruptcy Lawyer at Marshack Hays Wood Today
No one expects to fall behind on their financial obligations, but life can be unpredictable. If arbitration or mediation is not possible, some clients’ next best course of action is to file for bankruptcy to eliminate or restructure their debt. Clients can get immediate relief and stop car repossessions and harassing phone calls through an automatic stay.
Our Costa Mesa Bankruptcy attorneys know the law and have represented thousands in bankruptcy court, and can help guide you through the legal process with the best lawyers. Several of our lawyers have served in leadership positions with the Orange County Bankruptcy Forum and the Orange County Bar Association. These are experienced professionals who can assist with your bankruptcy filing.
We offer a free consultation in Southern California to discuss whether bankruptcy is your best option. Contact us today at (949) 333-7777 or complete the online form to speak with an attorney regarding your situation or case.