Lacavalaw offers a free consultation with an actual bankruptcy attorney. This is a great opportunity for you to learn how bankruptcy may work for you. There is no pressure to hire us or to go forward with a bankruptcy.
During your consultation, you can ask any questions you like. For example, you might discuss which debts to attempt to pay down first. Knowing the difference between how secured, priority, and non-priority secured debts are handled in bankruptcy could help you decide how to go forward. We can advise you on the particulars of your situation based on the law and our years of experience.
Start The Ball Rolling.
Call Lacavalaw at (415) 282-8960. If this is your first call to our offices, leave a couple minutes open so we can ask you a few questions about your situation. When you meet for your free consultation, we will ask you to bring a short list of documents. You may also request a consultation in the form below.
In a rush? well, we'll get to the point. Our offices can complete your bankruptcy and get your case filed in one afternoon. We have filed hundreds of same day bankruptcies for people just like you. If you need to stop a foreclosure sale, a garnishment or a withholding, and time is up, we can help. In one afternoon your case will get filed. Phew!
One of the advantages available to you in Chapter 13 bankruptcy is what is known as lien stripping. Say that the value of your home is $100,000.00 and you have a first mortgage for $200,000.00 and a second mortgage for $50,000.00. Such a home is commonly described as being underwater because the value of your home is less than the amount of your first mortgage. If you are in this situation, it may be possible for our offices to allow your bankruptcy to include a lien stripping. This would erase your second mortgage completely and you would no longer owe any money on the second!
When Will My Second Mortgage Be Removed?
Your second mortgage — and your third, fourth, etc. — will be considered a nonpriority unsecured debt when we file your case. What? Ok... here's what this means to you in bankruptcy. Just like, say, credit card debt, in Chapter 13 you will make small payments toward this debt through your Bankruptcy Plan. When you complete your plan — usually the court extends your time to pay what you can to five years, anything unpaid on the mortgage is wiped out. So… when you file Chapter 13, right away you stop making your second mortgage payments! At the end of your bankruptcy, your second mortgage lien will be removed from your house no matter what you owe on it.
Your debts may fall into one of four types: Priority, Secured, Unsecured Non-Priority, and Special.
Certainly you don't have to know the difference between types of debt. That's why you hire a skilled bankruptcy attorney. In your consultation, we will answer any questions about your debts; including type and how much you could expect to pay towards the debt in a Chapter 7 or 11 or 13. Nonetheless, it's good to be informed:
Priority Debts.
Your Priority Debts typically include your taxes if they are less than 3 years old, and some kinds of spousal and child support payments which are past due.
Secured Debts.
Your Secured Debts could include mortgage loans, car loans, and furniture and jewelry loans. If any of your property is used as collateral for a loan, then the debt is one of your secured debts. If someone you owe has recorded a lien against your property then that debt is also secured. You may be able to wipe out this type of lien in Chapter 13 or 11 bankruptcy.
If you're behind on your Mortgage payments, your Chapter 13 or 11 Plan will repay your missed Mortgage payments up to the date you file for Chapter 13 or 11.
Unsecured Non-Priority Debts.
Your Unsecured Non-Priority Debts could include your taxes from more than 3 years ago, your credit card debt, medical bills, and any personal loans you owe.
Some Debts Are Special.
In Chapter 13 or 11 you are telling the court that you cannot afford to pay back all the money you owe, but if you were to pay some of your debt, then you would be able to get back on your feet again. So with most of your debt, you will be paying a fraction of what you owe. There are some kinds of debt, however, which require you pay them in full through your Bankruptcy Plan. When your bankruptcy is over remaining unpaid debt will not be forgiven. Typically these types of debt may include, but are not limited to:
* Some of your student loans.
* Specific child support payments.
* Specific spousal support payments.
* Court ordered restitution.
* Criminal fines.
* Debts which resulted from a drunk driving incident.
* Most of your recent taxes which are less than 3 years old will have to be paid in full but with no accruing interest or penalties.
There are about 8 general steps in a bankruptcy that require action on your part. In total, however, there are actually many, many other steps, but these are taken by Lacavalaw for you. When we represent you in your bankruptcy, we complete and submit your petitions, court filings, respond to your creditors, etc., and we always attend hearings with you, or appear on your behalf, through the length of your bankruptcy.
In Chapter 7, 60 days following your bankruptcy hearing you will receive a discharge order from the court which will wipe out your debts and you will be totally debt free. In Chapter 13 or Chapter 11, your debts are totally cleared following the completion of your scheduled repayment plan; normally about five years.
OK... where to begin? ... Let's just put it out there; If you are in trouble, there are people, companies, organizations, non-profits, agencies, etc., etc. which see you as their opportunity to make money. You have to take care, do your homework, and be careful.
Debt Settlement Companies might give advice on how to deal with your bills or create a plan for repaying your creditors, but the FEDERAL TRADE COMMISSION notes that debt settlement has risks. It also assumes that you have years to spend living with your debts. Before you go down such a path, investigate complaints and proper licensing of the debt settlement company with the State Attorney General and the Consumer Protection Agency.
Make sure you get debt settlement companies to put in writing: costs, what your debt will be at the end, and how long it will take to become debt free. Check to see if what they say is different than what they put writing, and read each contract carefully.
Credit counseling organizations are non-profits, so they can't do anything but help, right? Nope, not true. 'Be aware that “non-profit” status doesn’t guarantee that services are free, affordable, or even legitimate.'
This is harsh, but truth is, no legitimate organization will loan you money if you have bad credit. But this doesn't mean that loans are hard to come by. Some loans are dangerous, likely preditory, and 'Advance Fee Loans' may be illegal.
So... one last thing. Beware of anything you get in the mail which promises to repair your credit. It is very likely you are looking at a mass marketing Credit Repair Scam.
Our Privacy Policy: It's simple. We don't track you, we don't use cookies, we don't sell or share your info. We will contact you to set up your consultation, but that's it. We won't contact you for any other reason, we won't add you to our email list, we won't call to bother you in the future. The only information collected on this site is collected from the Free Consultation Form in the fields you choose to enter for the sole purpose of setting up a consultation.
We respect your privacy. :)
LACAVALAW, Richard A. La Cava & The Affordable Bankruptcy Center represent clients throughout Northern California, San Francisco Bay Area, North Bay and East Bay, including the counties of Alameda, Contra Costa, Marin County, San Francisco, Napa, Sonoma, San Mateo and Santa Clara.
Our offices can best help you if you live or work near San Francisco, San Mateo, Redwood City, San Bruno, Daly City, Millbrae, Emeryville, El Cerrito, Foster City, Hillsborough, San Jose, Oakland, Berkeley, Richmond, Hayward, Castro Valley, Pleasanton, Walnut Creek, Concord, Mill Valley, Sausalito, Petaluma, Santa Rosa and Martinez.
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