Orange County Bankruptcy Attorney

Frequently Asked Questions

Can I get rid of all my bills in a Chapter 7 Bankruptcy filing?

In most cases, yes!  There are certain bills that you cannot discharge in a Chapter 7 bankruptcy.  The list of exemptions for California includes items like child support, student loans and taxes over three years old are usually all discharged.  You will no longer owe these debts, and will be free to make a fresh start, in many cases completely free of debt.

 Will I lose my retirement plan in a Chapter 7 bankruptcy?

Generally, no.  Most types of property are exempt under California law unless you have large amounts of equity.  Pension plans are usually protected.  However, it is important not to proceed with any type of bankruptcy filing without qualified legal advice from an Orange County bankruptcy attorney, to ensure that your property is protected.  Each case is unique and at the Law Offices of Joseph M. Tosti, a bankruptcy lawyer can review your case and advise you of the best course of action if you wish to protect your assets.

How can I stop the constant creditor calls?

As soon as your Chapter 7 bankruptcy has been filed, there is an immediate "stay" (halt) of all collection actions by creditors.  This has given clients such an incredible relief from stress to countless families who have been under duress for a long period of time.  This will also stop foreclosure and repossession actions.  Any creditor who violates this can be sanctioned by the bankruptcy court.

When I file bankruptcy, does my spouse have to file bankruptcy as well?

In many cases, most of the debt is under one individual's name.  In these cases, there is no need for the other spouse to file for bankruptcy.  The spouse that is not filing bankruptcy will not have negative effects from the bankruptcy filing.

Can I be fired from my job for filing bankruptcy?

No, the federal law prohibits the firing of individuals due to discrimination for bankruptcy filing.

If I file for Chapter 7 bankruptcy, will I be able to keep my home?

In California, your home is protected if you are single and have less than $50,000 in equity or married with less than $75,000 in equity in your home, or if you are over 65, disabled and have less than $150,000 in equity.  It is crucial that you get legal advice from a bankruptcy attorney at the Law Offices of Joseph M. Tosti and get legal advice to ensure that your home is not at risk.  In cases in which you do not qualify, you may be able to file a Chapter 13 bankruptcy and through certain actions taken by the bankruptcy attorney, force your creditors to accept a payment plan. 

Will I be able to keep my car if I file for bankruptcy?

In most cases, yes.  You will not lose your car if you file for Chapter 7.  There are exemptions in the law that protects your vehicles. 

Will I have to continue to make payments on my car?

If you want to keep your vehicle, you will have to continue to make payments on it.  If you do not want to keep the vehicle, you have the option to return the vehicle to the finance company and be discharged from the debt.

Will my credit be ruined for 10 years after a bankruptcy?

Usually credit can begin to be restored in about 18 - 30 months.  If you have been considering bankruptcy, it is likely that your credit is in bad shape already.  After bankruptcy, your amount owing will probably show up to $0.00 owed.  This can actually beneficial to your credit after a short period of time.

Contact an Orange County Bankruptcy Attorney from the Law Offices of Joseph M. Tosti if you are considering filing bankruptcy or need other debt-relief solutions.