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Home > Bankruptcy FAQ
What is the bankruptcy process?
Chapter Seven is a request for Relief under the bankruptcy act. The relief may generally be afforded to an individual, a partnership or a corporation. Most of the material expressed in these answers deal with individual debtors as opposed to partnership or corporate debtors.
Prior to filing individual debtors are required to obtain a Certification of Credit Counseling. The counseling is to help you decide if bankruptcy is right for you. The counseling will only take a few hours. Visit our bankruptcy process page for more information on the process for filing bankruptcy.
Where can I get the counseling?
We generally refer individuals to "Consumer Credit Counselors of Orange County". However, there are a number of online and telephonic counseling services that meet the requirements. Most charge $50.00 per person for the service.
Once the counseling is completed and a decision is made to proceed with the request for relief under the bankruptcy act you and the attorney will have to determine whether to file for relief under chapter seven or thirteen. (There are a number of other chapters available which are not discussed.)
In either a chapter seven (7) or chapter Thirteen (13) the process is commenced with the filing of a voluntary petition for relief. A meeting of creditors is scheduled with in approximately 35 days.
This meeting is called a 341 Hearing. An interim trustee presides over the meeting. This is usually an attorney appointed by the court to act as trustee. If no one objects to his/her appointment they will become the trustee for the case.
Trustees under Chapter 7 vary. Trustees under Chapter 13 are always the standing trustee for the district in which you are filing.
At the meeting the trustee will make a determination as to whether or not you have assets that may be used to pay creditors. Creditors have a limited ability to ask you questions at this meeting.
What is debtor education?
Before your debts are discharged you are required to take a class in financial education. The purpose of the education is to give you a better understanding of money. This class also costs $50.00 per individual. Once you take the class a certification of completion is filed with the court.
What is a priority claim?
Priority claims are obligations that must be paid in full as they are allowed priority under 11USC Section 507. These include spousal sand child support claims, trustee's fees, debtor attorney fees, certain wage and benefit claims, certain tax claims etc. (This list is not intended to be an exhaustive list of priority claims.)
What is an unsecured debt?
Unsecured debts are obligations for which the debtor either did not pledge a tangible asset as security or for which the security's value has decreased to the point that it is of no value. Unsecured is not the same as under-secured. An example of an under-secured loan would be a car loan for more than the value of the car pledged as security.
What if I want to pay some of my debts but not others?
You have the opportunity to reaffirm certain obligations. If this is the case a reaffirmation agreement may be put in place between the debtor and the creditor. This agreement requires court approval, which will not be granted if the agreement would result in a hardship to the debtor.
What about credit in the future?
Obviously, your credit will be significantly impacted by a bankruptcy filing, a foreclosure, or late payments. You will have to reestablish your credit in the future.
Can all debts be discharged?
The court may deny a discharge in which case none of the debts are dischargeable or may determine that specific debts are not dischargeable. Generally child support, spousal support, student loans, taxes, liabilities for fraud and bad acts. 11 USC Section 523 contains a long list of debts which are generally not dischargeable. There are various exceptions which may affect the dischargeability of a particular debt in your case.
Contact Our Tustin, California Offices
Our office is conveniently located one mile from the 55 and Garden Grove freeways. We are available to meet with you to discuss your consumer debt management options during regular business hours and evenings by appointment.
Contact us by calling 714-730-8202 or on-line to schedule an initial consultation.
Hosford & Hosford, Inc., A Law Corporation
17821 East 17th Street, Suite 295
Tustin, CA 92780-2163
Telephone: 714-730-8202| Fax: 714-730-1959
Map and Directions
At the Orange County, California law offices of Hosford & Hosford, A.L.C., we provide experienced consumer bankruptcy representation to clients in cities including: Tustin, Irvine, Orange, Anaheim and Santa Ana.
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| Orange County Bankruptcy Attorneys - Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, Chapter 13 Bankruptcy
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The information you obtain at this site is not legal advice. For legal advice, consult an attorney for advice regarding your own situation.
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