UNDERSTANDING BANKRUPTCY

You’re not alone when it comes to debt

Under the federal US Bankruptcy Code, families and small businesses who are unable to honor their financial obligations have the option of seeking debt relief by filing for bankruptcy. Millions of American families and businesses avail themselves of this legal option every year.

Is bankruptcy right for you?

The type of bankruptcy you may be eligible for depends on a number of factors. These include:

• your income

• how much debt you owe

• what assets you have

Reynolds Law Corporation offers focused legal representation for individuals and businesses in the State of California who are filing bankruptcy and are seeking debt relief. We offer assistance related to debts and debt management through:

• Chapter 7

• Chapter 13

• Chapter 11

• Chapter 12

  • Note: Congress increased the debt limit for farmers to $10,000,000 in October 2019. Chapter 12 can be a powerful tool to restructure debt in favor of farmers.

• Creditors’ rights

• Debtors’ rights

Pre-bankruptcy planning

You may not have made the best financial choices in the past, but planning for your bankruptcy begins the process of reversing the tide of debt in your favor. If you decide bankruptcy is your only option, you will need to make a few moves before you file. Some tactics may include reducing non-exempt assets or converting them into funds for reasonable living expenses.

It’s important you don’t approach these decisions without consulting with a bankruptcy attorney first, as you could end up having your bankruptcy dismissed for bad faith conduct.

Reynolds Law Corporation attorney Stephen Reynolds can help you understand the proper way to prepare for filing bankruptcy. Set up a free consultation with him at his Davis, CA office.

Reasons to file bankruptcy

Regardless of what type of bankruptcy you are pursuing, as soon as you file you can expect that several things will happen.

Harassment ends

Creditors and collection agencies will no longer be allowed to contact you except through the bankruptcy court. That means any intimidating or harassing debt-related phone calls or letters you have received will cease immediately.

Garnishments and foreclosures stop

Any wage garnishments or foreclosure proceedings that are underway will be temporarily halted. Once the bankruptcy process is complete, all your dischargeable debt, including medical bills, credit card bills, and past-due utility payments, will be permanently wiped out.

Some debt, such as student loans, support payments, or fines related to a conviction cannot usually be erased by filing for bankruptcy.

Before you make a decision, talk to an attorney 

A dedicated Davis bankruptcy attorney can help you choose which type of bankruptcy may be right for you and your family and also help you get started on the substantial paperwork involved in the the filing process.