Bankruptcy Laws

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