California Bankruptcy Law - An Overview

Attorney Lorene Mies will provide you with personal attention and a positive approach to debt counseling.  With compassionate service and a commitment to simplifying the legal maze surrounding debt relief and filing bankruptcy in California.

Bankruptcy . . . Just the sound of it evokes strong feelings in most people. It's rarely anyone's first choice when trying to cope with overwhelming debt, the decision of filing bankruptcy in California can be the right one when made with full awareness of all its consequences. Consulting a bankruptcy lawyer is a vital step in understanding your legal options.

Even the hardest workers and the most diligent bill-payers can find themselves with more debts than they can pay as they become due. In such cases, a bankruptcy lawyer may provide a solution to what seems like an insurmountable problem.  If you or someone you know is facing serious financial challenges, it is very important to seek the counsel of an experienced lawyer. Once considered a last resort, bankruptcy has evolved into an accepted method of resolving serious financial problems. The bankruptcy lawyer's goals are to help debtors make a fresh start and ensure that creditors get paid. Attorney Lorene Mies can guide you through the complicated legal maze of California bankruptcy law. 

Bankruptcy

Bankruptcy is a method by which individuals may be able to get out from under insurmountable debt and make a fresh start, albeit with a negative impact on their credit ratings.  There are two options: liquidating assets to pay off creditors, and filing a wage-earner plan that allows the debtor to retain more assets while working to pay off his or her debts.  Attorney Lorene Mies can help you choose the right course of action for your particular situation.

Chapter 7 Liquidation

Bankruptcy law provides two basic forms of relief: (1) liquidation, and (2) rehabilitation, also known as reorganization.  Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. 

To qualify for Chapter 7, an individual debtor must satisfy a financial means test.  In a Chapter 7 liquidation case, a bankruptcy "trustee" collects the debtor's "nonexempt" property (as opposed to the property that the debtor is allowed to keep and that is not subject to the creditors' claims) and converts it into cash.

The trustee then distributes the resulting funds among the various creditors according to an order of priority described in the Bankruptcy Code. Not all creditors receive the full amount owed through this process; in fact, some may receive no payment at all. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of an individual (non-business) debtor. 

If the debtor is a corporation, it ceases to exist after liquidation and distribution, and there is therefore no reason for further discharge because the creditors cannot seek payment from an entity that no longer exists. 

Contact Attorney Lorene Mies today at lorene@lmieslaw.com or call us at 1-951-894-4791 to see if liquidation bankruptcy is right for you.  

Chapter 13 Reorganization 

Rehabilitation or reorganization is the option often preferred by the courts.  Creditors may be provided with a better opportunity to recoup what they are owed.  This type of bankruptcy is governed by Chapter 13 of the Bankruptcy Code.  Reorganization provides debtors with a greater opportunity to retain their assets by paying off their debts according to a plan approved by the bankruptcy court.  If the debtor fails to adhere to the plan, however, the court may still order liquidation.  The petitioning debtor must first undergo credit counseling. 

Contact Attorney Lorene Mies today at lorene@lmieslaw.com or call us at 1-951-894-4791 to see if reorganization bankruptcy is right for you.  

CONCLUSION 

Lawyers specializing in California bankruptcy law can help both debtors and creditors overcome obstacles to the repayment of debt.  Experienced bankruptcy lawyers have the knowledge and expertise to help their clients get out from under formidable debt and emerge as productive citizens, and can also assist their creditor clients in collecting what is rightfully theirs. 

Contact Attorney Lorene Mies today at lorene@lmieslaw.com or call us at 1-951-894-4791 to see if bankruptcy is right for you.

Debtors considering bankruptcy must bear in mind that filing bankruptcy stays on their credit report for up to ten years, making it difficult to get future credit such as mortgages, and that any credit they are extended will probably cost more in terms of interest rates and fees. And some debts must still be paid. Accordingly, it is essential to seek the advice of an experienced bankruptcy attorney before making potentially life-altering financial decisions.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.