Irvine Bankruptcy Attorneys
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Are You Looking to File Bankruptcy in Irvine, CA?
In the heart of Orange County lies Irvine, a vibrant city with a dynamic economy. Yet, even in prosperous areas like this, individuals and businesses can face financial hardships. When debts mount and financial pressures become unbearable, it’s vital to have a great bankruptcy attorney to guide you through the bankruptcy process.
If you need an Irvine bankruptcy lawyer, look no further than the bankruptcy lawyers at Marshack Hays Wood. With years of experience serving the Irvine community, our Irvine bankruptcy attorneys understand the unique financial landscape of Orange County. Not only that, but we can guide you through the bankruptcy process and ensure your case is filed correctly and promptly.
Whether you’re considering Chapter 7, Chapter 11, or Chapter 13 bankruptcy, we are here to provide expert counsel, compassionate support, and a clear path forward. Trust in Marshack Hays Wood to navigate your journey toward financial recovery with confidence and peace of mind. Call our law offices today at 949-333-7777 and schedule a free consultation with the experienced Irvine bankruptcy attorneys on our team.
What is Bankruptcy?
Bankruptcy is a legal process designed to help individuals eliminate or restructure their consumer debt and help businesses eliminate or restructure their business debt. Many individuals and businesses use bankruptcy as a debt relief tool when they can no longer meet their financial obligations. It offers a fresh start to those drowning in debt by either discharging certain liabilities or creating a manageable repayment plan.
While bankruptcy can provide significant financial relief, it’s not a one-size-fits-all solution.
The type of bankruptcy filed–whether it’s Chapter 7, Chapter 11, or Chapter 13–depends on an individual’s or business’s specific circumstances and goals.
Navigating the different chapters of bankruptcy requires a comprehensive understanding of the law, as well as a careful evaluation of one’s financial situation. That’s why so many people who file for bankruptcy seek legal counsel from a trusted bankruptcy law firm in their area.
Why Do People File Bankruptcy?
People file for bankruptcy for a myriad of reasons, often stemming from unforeseen life events or economic shifts. For some, personal injury accidents, job losses, business issues, or even divorce proceedings can lead to overwhelming debt. For others, a combination of credit card debts, student loans, or unexpected expenses can cause their debt to spiral out of control.
Bankruptcy offers a legal refuge, allowing individuals and businesses the chance to reset and handle their debts without the fear of injunctions. It also provides a structured pathway to address overwhelming financial burdens, halt aggressive creditor actions, and establish a foundation for a more secure financial future.
While the decision is significant and carries its set of consequences, for many, it represents hope and a means to regain control over their financial destinies. If you are dealing with a financially stressful time, an experienced bankruptcy attorney can help put you on the path toward financial recovery.
Types of Bankruptcy
The U.S. Bankruptcy Code is separated into Chapters, each tailored to different scenarios and financial situations. Most people file under Chapter 7, Chapter 11, or Chapter 13 of the bankruptcy code. Each Chapter offers its unique approach and benefits to debt resolution, so understanding these types can empower you to make informed decisions about your financial future. Not sure which Chapter would work best for you and your situation? Our Irvine bankruptcy attorneys can help you determine which Chapter would be the most beneficial for you.
Chapter 7 Bankruptcy
Often referred to as “liquidation bankruptcy,” Chapter 7 provides individuals with the opportunity to erase most of their unsecured debts, like credit card balances and medical bills.
Certain assets, known as secured assets, will be liquidated to repay creditors. However, debtors may be able to keep some of their assets using exemptions, which aim to protect those who file for bankruptcy from losing essential assets. After filing for Chapter 7, the bankruptcy court will appoint a trustee who will oversee the liquidation of the debtor’s secured, non-exempt assets, and pay creditors with the proceeds.
Not everyone is eligible for Chapter 7; candidates must pass a means test, which evaluates their income against the state’s median income. For those who qualify, Chapter 7 can offer a swift path to a fresh financial start, typically discharging all or most of a person’s debts in 3-4 months.
Chapter 11 Bankruptcy
Primarily used by businesses, Chapter 11 bankruptcy offers a way to restructure and reorganize debts while allowing the entity to continue operations. Companies facing temporary setbacks or those saddled with untenable debt structures can benefit from this process. During a Chapter 11 bankruptcy, the debtor proposes a plan to reorganize their finances and debts to both keep their business alive and pay their creditors over time.
While a Chapter 11 proceeding can be more complex and costly than other bankruptcy chapters, it provides flexibility and can be a vital lifeline for businesses aiming to return to profitability. Plus, if you decide to file for Chapter 11 bankruptcy with Marshack Hays Wood, an experienced Irvine business bankruptcy attorney from our team will walk you through the entire process.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, often known as a “wage earner’s plan,” is designed for individuals with a regular source of income. Chapter 13 allows debtors to develop a plan to repay all or part of their debts over three to five years. Unlike Chapter 7, where assets may be liquidated to pay off creditors, Chapter 13 focuses on repaying all or most of a person’s debts, allowing debtors to keep their property, including non-exempt assets.
This bankruptcy Chapter is particularly useful for those behind on their mortgage or car payments, as it can halt foreclosure or repossession, allowing debtors to catch up on payments. Many people who file for Chapter 13 bankruptcy only do so because they do not qualify for Chapter 7. Still, a Chapter 13 filing can be beneficial for certain individuals, especially those with some assets they want to keep.
Which Bankruptcy Chapter is Best for Me?
To determine the right bankruptcy chapter for your specific situation, you need an in-depth understanding of your current financial situation, as well as your short-term goals and long-term objectives. Bankruptcy can’t help you get where you need to go if you’re unsure where you are and where you want to be.
Chapter 7 might be suitable for those with limited income and assets or those seeking a relatively quick discharge of unsecured debts. In contrast, Chapter 13 might be better for individuals with a steady income who wish to retain their assets and repay their debts. Businesses or individuals with complex debt structures might lean toward Chapter 11, taking advantage of its flexibility.
It’s crucial to remember that while bankruptcy can offer a fresh start, the decision carries implications for your financial future. Consulting with our Irvine bankruptcy attorneys can provide clarity, ensuring you choose the path that aligns with your specific needs and paves the way for financial recovery.
What are the Benefits of Bankruptcy?
Bankruptcy not only addresses overwhelming debts but also offers tangible protections against aggressive creditor actions like foreclosure and wage garnishment. This is done by utilizing the “automatic stay,” which legally protects you from certain actions throughout the bankruptcy process.
From safeguarding valuable assets to halting intrusive collection attempts, the advantages of bankruptcy can be transformative for those grappling with financial challenges. Below are some of the key benefits of filing your bankruptcy case.
Stop Repossession and Foreclosure
Filing for bankruptcy can halt the repossession of valuable assets like your car, allowing you a chance to restructure your debt and potentially keep your possessions. In addition to stopping car repossession, initiating a bankruptcy case can place an immediate stay on foreclosure proceedings, providing homeowners an opportunity to either catch up on missed payments or reassess their housing situation.
Stop Creditor Harassment
Once you’ve filed for bankruptcy, creditors must legally cease all collection efforts and harassment, granting you peace of mind and space to focus on your financial reset. If you continue to receive phone calls or letters from your creditors or from collection agencies after filing for bankruptcy, contact your bankruptcy trustee. They can help ensure you receive peace and quiet while working toward your financial future.
Stop Wage Garnishment
It can be difficult and, in some cases, impossible to catch up on debt payments if you are having a portion of each of your paychecks garnished. Bankruptcy can immediately put an end to wage garnishments, ensuring you retain your full earnings as you navigate the bankruptcy process and work towards having a more stable financial standing.
What is a Bankruptcy Discharge in Bankruptcy Law?
A bankruptcy discharge is a pivotal element in the bankruptcy process, and it symbolizes a fresh start for a debtor. In essence, it’s a court order that releases the debtor from the responsibility of repaying certain specified debts, rendering those debts legally unenforceable by creditors. This means that once a debt is discharged, creditors can no longer take any collection action on that debt, nor can they communicate with the debtor about it.
The types of debts that can be discharged vary depending on the Chapter of bankruptcy filed. For instance, while a Chapter 7 bankruptcy might discharge unsecured debts like credit card bills and medical expenses, certain obligations, such as student loans, child support, and some tax debts, are generally non-dischargeable.
The discharge is a powerful tool in bankruptcy law, providing genuine relief to individuals seeking to break free from the shackles of overwhelming debt. When you hire the Orange County bankruptcy attorneys at Marshack Hays Wood, you can rest assured that we will do everything we can to help ensure you receive your bankruptcy discharge.
How to File Bankruptcy in Irvine, CA
Like in other parts of the country, filing bankruptcy in Irvine, CA, is a structured process that requires attention to detail and careful planning. The first step is typically a consultation with a knowledgeable bankruptcy attorney in Irvine who can advise you on the best chapter to file under and guide you through the process.
Following this, you’ll need to complete a credit counseling course, which is an essential prerequisite before any bankruptcy filing. After that, you’ll submit a comprehensive package of forms to the local bankruptcy court, detailing your financial status, debts, assets, income, and a list of your creditors.
After filing, the automatic stay will be initiated, offering you immediate relief from creditor actions. Depending on the bankruptcy chapter, you may need to complete additional steps, including meeting with a bankruptcy trustee, forming a repayment plan, or liquidating your non-exempt assets.
While the process might seem intricate, with guidance and thorough preparation, you can navigate bankruptcy in Irvine and embark on the path to financial recovery. Our legal team at Marshack Hays Wood have been helping clients in the Irvine, CA area file for bankruptcy for years, making us well-prepared to help you through your own bankruptcy.
How Much Does It Cost to File Bankruptcy in Irvine?
The cost of filing for bankruptcy in Irvine, California, can vary based on several factors, including the type of bankruptcy chapter you’re filing under and whether or not you hire an attorney to help you file. Generally, there are two main components to the cost: the filing fee and attorney fees.
The filing fee is set by the bankruptcy court and can differ based on whether you’re filing for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Below are the bankruptcy filing fees in Irvine, CA:
- Chapter 7 filing fee = $338
- Chapter 13 filing fee = $313
If you cannot afford to pay the filing fee, you can apply for a fee waiver or apply to pay the fee in multiple installments.
Attorney fees can vary widely depending on the complexity of your case and the level of expertise of the chosen attorney. While it may seem frivolous to spend money on an attorney when you’re in a difficult financial situation, discussing fees upfront with your attorney can help you understand the full financial commitment of filing for bankruptcy.
Do I Need an Irvine Bankruptcy Attorney?
While it’s technically possible to file bankruptcy on your own, it’s strongly recommended that you seek the guidance of an experienced bankruptcy attorney. The bankruptcy process involves intricate legal procedures, documentation, and major financial decisions that can significantly impact your future.
A bankruptcy lawyer will not only help ensure that all paperwork is accurately completed and submitted, but they can also provide invaluable counsel on the implications of your decisions, protect your assets, and represent your interests in court. You’ll have access to their legal knowledge and resources, as well as the resources of their law offices.
Additionally, by hiring an Irvine bankruptcy lawyer, you’ll have legal advice from an attorney with knowledge of federal law and experience in Irvine bankruptcy court. This can increase the chances of a smoother and more successful filing. In the realm of bankruptcy, having expert legal representation can be a significant advantage in securing the best possible outcome for your case.
Contact the Irvine Bankruptcy Lawyers at Marshack Hays Wood
Navigating the turbulent waters of bankruptcy requires experience, understanding, and a personalized touch. At Marshack Hays Wood, our extremely professional bankruptcy attorneys bring a unique blend of deep legal knowledge and a genuine commitment to each case we take on. We have extensive experience helping Orange County residents regain their financial footing through bankruptcy.
Whether you’re contemplating bankruptcy or seeking guidance on bankruptcy alternatives, our team is here to stand by your side, providing clear, comprehensive advice every step of the way. We can help ensure you make the right decisions regarding your bankruptcy case, putting you on the best path toward debt relief.
At Marshack Hays Wood, we don’t just handle cases involving bankruptcy–we also offer guidance in other legal matters, including loan modification, real estate litigation and creditor’s rights disputes. We proudly serve the residents of Irvine, CA, as well as those living in Santa Ana, Anaheim, Huntington Beach, Costa Mesa, and beyond.
Take the first step today and reach out to our law firm for our Orange County bankruptcy services or any of our other legal services.
At Marshack Hays Wood, we strive to assist our clients through their bankruptcy cases from their first phone call with us to the day they receive their bankruptcy discharge. Don’t face these challenges alone–call our law offices at 949-333-7777 or contact us online to schedule a free consultation with an experienced bankruptcy attorney with us today.
