Frequently Asked Questions

Question: If I file bankruptcy will I have to give up my assets?
Answer: No. The U.S. Bankruptcy Code provides that a debtor may retain a long list of “exempt” assets, including substantial equity in the debtor’s residence. However, if the asset is a security for the debt, to keep the asset the debtor wants to retain such as his house or car, regular mortgage or car payments would have to be made.

Question: My house is in foreclosure. What can I do?
Answer: Contact your lender. A loan modification may be an option. If you want to retain your house to save your equity, a Chapter 13 Bankruptcy may be another option. If you qualify, a Chapter 13 Plan may permit you to pay your past due mortgage payments over a three to five year plan, thereby enabling you to keep your house.

Question: My house is in foreclosure. What can I do?
Answer: Contact your lender. A loan modification may be an option. If you want to retain your house to save your equity, a Chapter 13 Bankruptcy may be another option. If you qualify, a Chapter 13 Plan may permit you to pay your past due mortgage payments over a three to five year plan, thereby enabling you to keep your house.

Question: What happens if I have equity in an asset which exceeds the allowable exemption amount?
Answer: If you want to keep the asset, often an equity buy back can be negotiated with the bankruptcy trustee or a Chapter 13 Bankruptcy may be appropriate.

Question: Should I save attorney fees and go to a “paralegal” for help with my bankruptcy?
Answer: Absolutely not! Bankruptcy is a very serious federal court filing. You must sign these documents under penalty of perjury. It is absolutely essential that analysis of your case and preparation of the required documents be done correctly. The U.S. Bankruptcy Court prohibits non-attorneys from giving legal advice. Legal advice includes advising a debtor whether or not to file bankruptcy, whether or not a debt is dischargeable, and whether or not equity in an asset is exempt. Hiring a non-attorney to do your bankruptcy is being “penny wise and pound foolish.”

Do You Have Questions?
Call (530) 241-1100 to schedule a free initial consultation.

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DISCLAIMER

The general information presented on the website does not constitute the giving of legal advice in your specific case. The law is complex, and the facts of your particular situation may contain exceptions to general rules. You should avail yourself of the option of the free initial consultation to discuss the particular facts in your case. Do not take legal action upon reliance of the information contained in this website without first conferring with a licensed attorney.