Welcome to California Bankruptcy Relief

You are not alone in the bankruptcy process. Let us serve as your guide, helping you secure maximum debt relief through whichever type of bankruptcy is best suited to your specific case. Contact us today to get started.

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Common Myths

Below is a List of Common Bankruptcy Myths (the answer to each question is No or False). Contact our Riverside Bankruptcy Attorney or Orange County Bankruptcy Lawyer and get the truth about Bankruptcy, Bankruptcy Facts, Bankruptcy Laws, the Effect of Bankruptcy and more.

The answer to each question below is No or False:

Is Bankruptcy No Longer Available? No.

Many people are being falsely informed that bankruptcy is unavailable now, especially after the bankruptcy law changes in 2005 and our current economic crisis.  The truth is, bankruptcy is still available however qualifying for bankruptcy has become more difficult post 2005.  In 2009, over 1.4 million bankruptcies were filed and the numbers continue to grow.

Will I Lose My Home and Car if I file Bankruptcy? No…*

Our Riverside Bankruptcy Attorneys or Orange County Bankruptcy Lawyers can protect you from our from losing your home or cars in almost all cases*. If you have a home or car loan, stay current on your loans and lenders will not foreclose on your house or repossess car.  You will own the house or car free and clear once you’re finished paying off the loan.  If you’re one of the few fortunate home owners that has equity in your home, we can protect up $175,000 in equity depending on your household size, age or health. We can also protect up to ~$25,000 in equity in your cars and other personal property.  See our California Exemption Chart to learn more.

Will They Come to My House and Take Everything Away? No.

In the overwhelming majority of cases, the trustee will never send anyone to your home to inspect the value of your household furnishings.  This is because the Bankruptcy laws afford you the ability to keep almost all of them, provided they are not luxury items. You are under duty to list all of your possessions in the bankruptcy documents, but they will be exempt from liquidation. You may qualify to keep those your luxury items too depending on your circumstances.

I Can’t Qualify for Credit, Right? Wrong.

Another Bankruptcy Myth. It’s likely that your existing unsecured credit cards will be canceled but once your bankruptcy has finished and debts discharged, you will be inundated with credit credits offers and applications.  Most credit repair agencies advise using your new credit card for small purchases and repaying them right away to rebuild your credit.

I Can’t Qualify for Auto Financing, Right? Wrong.

Another Bankruptcy myth.  The Bankruptcy effects on your car loans is only temporary.  Although Car lenders will not finance a car loan while you are going through your bankruptcy, you will be able to finance your vehicle after your bankruptcy is complete because, among other things, your income to debt ratio is much better. See one local southern California company that finances after bankruptcy is replacevehicle.com.

Will I Lose My Job? No.

This is a great Bankruptcy Question.  The Bankruptcy Code makes it unlawful for employers to discriminate against employees and job applicants because of bankruptcy or the bed debts incurred prior to filing for bankruptcy.

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt.

11 U.S.C. sec. 525(b).

Is Bankruptcy Only for Deadbeats & the Unemployed? No.

Nothing could be further from the truth.  Some of the wealthiest and most famous people filed for bankruptcy protection including former U.S. presidents Ulysses S. Grant and William McKinley, and famous celebrities such as Larry King, Rush Limbaugh, Wayne Newton, Toni Braxton, Marvin Gaye.

Most people file bankruptcy are employed when they file bankruptcy.  They’re just drowning in their debt and unable to pay their bills in a reasonable amount of time so bankruptcy was their solution. In fact filing Chapter 7 Bankruptcy requires most individuals pass the Means Test to ensure you’re employment income is not too great. Also, a Chapter 13 bankruptcy also requires you have regular income in order to file.

Will the Whole World Will Know I Filed? No.

One Effect of filing Bankruptcy is that it is a public record but it’s not easily accessible. But more importantly no one really cares unless you’re a celebrity. People generally do not have any idea Who’s on first, What’s on second or that you filed bankruptcy.

Will Bankruptcy Eliminate Every Kind of Debt? No…*

In a Chapter 7 Bankruptcy, most, if not all of your debts are eliminated.  Unsecured debs like credit cards, medical bills, personal loans.  Secured debts like home loans and car loans are wiped out too but you can keep them as long as you continue to make payments and stay current.  You will eventually own the house or car, free and clear, once your loan is paid off. However, certain types of debt cannot get discharged such as child support, student loans, some taxes.

Will the Bankruptcy Judge Rake Me Over the Coals? No.

It’s very, very, unusual for any our clients to see the bankruptcy judge.  Upon filing, our Riverside Bankruptcy Attorney will accompany you to the 341 Hearing or Meeting of Creditors where your appointed bankruptcy trustee will ask you some questions regarding your finances and assets.  Although the meeting is intended to provide creditors an opportunity to ask debtors questions about their debts, they almost never appear.

Must Both Spouses File Bankruptcy? No.

Because California is a Community Property state, many people incorrectly assume that both spouses must file.  However, if the debt incurred was separate property, e.g., acquired prior to marriage or excluded from community property, then the debtor spouse can file separately while the non-debtor spouse does not.  As a caveat, married couples should take extra precaution when determining this issue since some assets can actually change from separate to community property.

The Bankruptcy Lawyers at California Bankruptcy Relief can help you today.  We represent clients who seek bankruptcy advice and look to discharge debt through Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Contact Us and an experienced Riverside Bankruptcy Attorney or Orange County Bankruptcy Lawyer will evaluate your case and review your options.

What this page covers

Bankruptcy Information, Truth About Bankruptcy, Bankruptcy Facts, Bankruptcy Law, How Bankruptcy Effects Credit, Bankruptcy and Auto Financing, Debt Relief from Bankruptcy, Personal Bankruptcy, Bankruptcy Attorney, Riverside Bankruptcy Law Firm, Orange County Bankruptcy Law Firm