Frequently Asked Questions
Ventura Bankruptcy Lawyer
What is bankruptcy?
Bankruptcy is a process that is designed to free a person from the burden of a high debt load. Federal law gives any American the right to file for bankruptcy, and all bankruptcy cases are overseen by federal courts. In addition to relief from debt, bankruptcy also provides for protection from collection actions by creditors.
Is there more than one type of bankruptcy?
There are several bankruptcy types, referred to as “chapters,” that serve different financial situations. They include:
- Chapter 7 – A person “liquidates” certain property or assets for the purpose of gaining the funds needed to pay back creditors.
- Chapter 11 – Designed mostly for businesses and partnerships, though it can be utilized by individuals with an extreme amount of debt.
- Chapter 12 – Designed specifically for American family farmers
- Chapter 13 – A person pays back creditors over time using a court-approved payment plan.
What benefits does bankruptcy provide?
Bankruptcy allows individuals to:
- Eliminate most or all of their financial liabilities
- Prevent property repossession
- Prevent home foreclosure
- Prevent wage garnishment or bank account seizure
- Stop harassment and abuse from creditors
- Challenge creditors who may be seeking more than what is owed, or misrepresenting the nature of the debt
- Restore utilities, or prevent their termination
What will bankruptcy not do?
There are several things bankruptcy cannot do. These include:
- Protect co-signers on outstanding debts
- Do away with debts that are incurred after bankruptcy has already been filed
- Discharge debts related to alimony, child support, student loans, and certain taxes
- Eliminate the rights of creditors who are seeking to recover a debt for a “secured” item, such as a home or vehicle
Contact a Ventura bankruptcy attorney who can answer all of your questions about the bankruptcy process.