by: ©2015 Jeffrey Cancilla
Before we get in to ‘bankruptcy
laws’, we must first understand the term; “bankruptcy”.
As commonly defined in
dictionaries and various online research sites, the term bankruptcy means; a procedure
for liquidating a business or property owned by an individual which cannot
fully pay its debts out of its current assets.
Bankruptcy can be filed
voluntarily by an insolvent debtor, or it can be forced through court orders
issued by a creditors petition as involuntary bankruptcy.
The involved persons in the bankruptcy proceedings are
the following:
- The debtor or also known as the “petitioner” who is the one that files bankruptcy.
- The creditors which refers to persons, firms, or entities that claim the debtor owes them money.
- The trustee who is the court-appointed person who administers the bankruptcy proceedings and any property available for distribution to creditors which is called, the bankruptcy estate. This trustee is also the one who represents the interests of the unsecured creditors and is required to liquidate nonexempt assets, to inspect the debtor’s financial affairs, examine creditors’ proofs of claim, provide information to parties in interest, file reports, etc.
- The bankruptcy judge is the one who supervises or has ultimate control over any hearings on uncertain matters in connection with the case being handled.
Attorney Jeffrey Cancilla is a master in Bankruptcy law. He has been assisting clients
for over 30 years in their bankruptcy cases and litigation. He uses all tools
at his disposal to insure his clients are protected, such as; bankruptcy law,
fair credit law and debt negotiation.
In regards
to bankruptcy laws, it will helpful
to explain the federal bankruptcy process and the common issues surrounding this,
as they might pertain to a resident of a certain country like resident of
California.
Specifically, in California’s bankruptcy law,
there are exemptions to keep in consideration. And those exemptions are the
following:
- Belongings (particularly properties) you can exclude or secure from creditors when you file bankruptcy in your country.
- You may also exempt any property that falls into one of the exemptions which further listed in the bankruptcy law up to the dollar amount listed.
- You will be able to keep this exempted property after you file bankruptcy.
One must be aware that there are certain debts which you will
not be able to eliminate in bankruptcy. An exemption limit applies to any equity you have in
the property.
What is
Equity? Equity is the
difference between the value of the property and what is owed on the property.
Like for instance, an apartment valued at $5000 with a loan
of $4500 has an equity value of only $500.
For some additional information about the bankruptcy laws,
stay tuned here we will be posting more informative content!
How to File
Bankruptcy
If incase, you need to know more about this matter for
applications, here’s some information about how to file bankruptcy in
California:
Step 1: All debtors who file bankruptcy on
or after October 17 2005 are required by the 2005 Bankruptcy Act to undergo
credit counseling within six (6) months before filing for bankruptcy relief and
to a complete financial management instructional course after bankruptcy.
Step 2: Your income and expenses will be evaluated
to validate if you qualify to file a Chapter 7 or if you must file Chapter 13
according to the 2005 Bankruptcy Acts.
Step 3: Going to bankruptcy process, you must record the following:
a.) Your current income
sources; major financial transactions for the last two (2) years.
b.) Monthly living expenses.
c.) Debts whether secured and unsecured.
d.) Property, it can be all assets and
possessions, not just real estate.
e.) Other than being mentioned above,
you should also collect your tax returns for the last two years.
f.) Deeds to any real estate you own,
g.) Your car titles.
h.) Documents for any loans you may
have.
Step 4: Either on your own, or with the help
of your attorney, you should then verify which property(s) you believe are excused
from seizure based on the California exemptions.
Step 5: In filing
the bankruptcy, you need to file a two-page petition and some other forms at
your district bankruptcy court. The said forms that should be collected are the:
·
Schedules
·
Description of your current financial status
·
Description of recent financial transactions (within
the last two years).
In filing the bankruptcy, you need to be extra careful
and sincere. If your creditors or the judge sense that you’re not responsible enough
or you have not been completely obliging to your bankruptcy filing, it could endanger
the result of your petition.
If you still have questions to which you would like immediate
answers to, make a list of your questions or concerns and call Attorney Jeffrey Cancilla. He will provide you with
immediate and complete clarification on all of your Bankruptcy issues.
Jeffrey A. Cancilla Esq.
Huntington Beach Law Group
Irvine, Ca – 949-248-4546