Bankruptcy in Santa Ana 
 

Thank you for visiting the Santa Ana Bankruptcy Law Offices of “insert attorney name”. 

If you cannot pay your debts because of unemployment, illness, divorce or other factors, or if you need to stop foreclosure, automobile repossession or creditor harassment, call our offices and our attorneys can help you decide if bankruptcy is the right decision for you.  Also, please take a moment and visit our “Why hire us” page to see why we stand out from the other Bankruptcy attorneys in and around Santa Ana. 

Bankruptcy Overview

  • Filing for bankruptcy provides you with a fresh start.
  • Under Federal law, bankruptcy allows you eliminate your debts through liquidation of your assets or create a repayment plan and keep your assets.
  • Consider filing for bankruptcy when:
  • You get harassing phone calls all day and all night
  • Your expenses out-number the amount of your paycheck
  • You are being sued
  • An Automatic Stay will stop creditor harassment.
  • There are two types of debt:
  • Secured: A creditor can foreclose on your home or repossess you vehicle.
  • Unsecured:  Creditors have no claim to your property (i.e. credit cards, medical bills)
  • If you are a co-signer to a debt, you can be held responsible for that debt.
  • Filing for bankruptcy can affect your future credit, renting a house or apartment and it can hurt your chances of getting a job.
  • Bankruptcy remains on your credit report for 7 to 10 years.
 

Court location

  • Bankruptcy cases cannot be filed in local California courts.
 
  • Bankruptcy Court for Central District of California

    Ronald Reagan Federal Building & U. S. Courthouse

    411 West 4th Street

    Santa Ana, CA 92701 

    Telephone:  714-338-5300

    Hours:  Monday thru Friday: 9:00a.m. - 4:00p.m. 

Debts that cannot be discharged

  • Child support
  • Alimony
  • Taxes owed to local, state and federal
  • Student loans – Under Chapter 7
  • Personal injury debts – accidents, death while driving under the influence
  • Etc.
 

Bankruptcy Laws

  • Filers with a high income will have to file for Chapter 13, not Chapter 7.
  • Before filing for Chapter 7, you must qualify through a Means Test:
  • Your income versus the median California income
  •  
    • If lower - you will qualify
    • If higher - the court calculates disposable income and all unsecured debts
    • Disposable income for the next 5 years is less than $6,000 - you can file
    • More than $6,000 but less than $10,000 – okay to file
 
  • Before filing for Chapter 7 or Chapter 13, you must complete Credit Counseling.
  • Use an agency approved by the United States Trustee’s office.
  •  
    • Consumer Credit Counseling Service of Orange County, Inc.
  •  

      1920 Old Tustin Avenue

  •  

      Santa Ana, CA 92832

  •  

      888-289-8230

  • Discusses your options – bankruptcy versus informal repayment plan
  • Also teaches you personal financial management
  • You will receive a certificate of completion
 

Bankruptcy Types

  • The United States Bankruptcy Code, Title 11, offers several types:
 
  • Chapter 7 - Liquidation
  • Eliminates all debts and gives you a fresh start
  • Most common type of bankruptcy
  • An Automatic Stay will stop creditors from harassing you
  • All non-exempt property is liquidated or sold – proceeds are given to creditors
  • You can only file for Chapter 7 bankruptcy once in an eight-year period
  • Discharge can be completed in a few months
  • Relieves you of unsecured debt, such as:
  •  
    • Credit cards
    • Bank loans
    • Medical bills
 
  • Chapter 13 - Repayment
  • Referred to as Wage Earner Bankruptcy – must have a regular income
  • A repayment plan with up to 5 years to pay debts
  • Interest-free plan
  • Restructure of debts – pay your debts with future income
  • Allowed to keep your assets/property
  • Repayment begins approximately a month after filing
  • Automatic stay imposed – prohibits creditors from calling you or contacting you
  • Stops foreclosure and repossession
  • Full discharge option – not available under Chapter 7
 
  • Chapter 11 – Business Reorganization
  • Best for businesses, corporations and sometimes individuals.
  • Individuals that do not want to file for Chapter 7 and owe too much for Chapter 13 can file for Chapter 11.
  • Creditors and the court must approve your plan for reorganization.
 

How often can you file for bankruptcy?

  • Chapter 7
  • Can be filed 8 years after a previous Chapter 7 filing
  • Can be filed 6 years after a prior Chapter 13 filing
 
  • Chapter 13
  • Can be filed 4 years after a previous Chapter 7 filing
  • Can be filed 2 years after a pervious Chapter 13 filing
 

Conclusion

If you don’t know who to turn to, call the Bankruptcy Law Offices of “insert attorney name” in Santa Ana.  Bankruptcy holds out a promise of a new, brighter future without the burden of excessive debt.  Filing for bankruptcy is a tough decision that shouldn’t be undertaken lightly; we will help you determine the correct bankruptcy choice for you.