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Do I Really Need To Give Up My Possessions During Bankruptcy?

There are many misperceptions about bankruptcy that people worry about. To put your mind at ease, I like to explain to my clients how the process works.

When you file for bankruptcy, a “bankruptcy estate” is created. That means that in a broad sense you don’t potentially own anything anymore. Instead, your bankruptcy estate owns everything that you owned. However, in reality it works a bit differently. There are a series of state law exemptions that we use when we file a bankruptcy. If we exempt something from the bankruptcy estate, it means that it doesn’t become part of the bankruptcy and you get to keep it.

Hope For Homeowners — Stop Foreclosure Now

Homeowners can find themselves behind in their mortgage payments for any number of valid and very understandable reasons, ranging from a job loss to unexpected medical bills. The important thing to realize is that there is hope for homeowners — effective ways to stop foreclosure and retain your home.

As a bit of background information, you should know that your lender can issue a Notice of Default if you’ve missed more than three payments. Under California state law, once a lender issues a Notice of Default, you have the right to

A Court Appointed Trustee Scrutinizes the Income and Regulates the Expenditure

What are some other barriers that someone is going to be facing if they try to go at this on their own?

We have spoken about some of the issues before. Here is more information.

The trustee is responsible for overseeing the bankruptcy.  They will scrutinize the income and the expenses.  If somebody has tried to make their expenses more liberal, the trustee is going to shoot that down.  If they don’t know, for example, that they are supposed to

In a Chapter 13, the Attorney’s Fee Can be Placed into the Plan of Reorganization

The Chapter 13 attorney’s fee can be placed into the plan of re-organization.  We become one of your creditors, so, when you make that monthly plan payment, the trustee is going to turn around and pay our fee. That allows for very little out of pocket cost to retain an attorney on a Chapter 13.  Our retainer fee is $500, which is applied to the cost of the bankruptcy, the filing fee, the credit report and the credit counseling classes.  The attorney fees are paid through the plan payment. We know the person can afford it because we see their income and their expenses,  and when we write the plan.