Modesto, California Bankruptcy Lawyers

People are under the impression that if they file for bankruptcy, they are going to lose some of their property that they own. That is rarely true. In fact, in most bankruptcy filings the debtors get to keep everything they have. Bankruptcy law allows for certain exemptions under the Bankruptcy code that allow you to keep certain things up to a certain amount. Your clothing, furnishings and retirement, are usually all going to be protected unless you have some really valuable stuff. In addition to that you get another $21,000 to about $24,000 in wild card exemptions. That means you can keep your $10,000 car that’s paid off along with your bank account that holds another $10,000. You can mix and match with the bankruptcy wild card. So, you can protect just about anything… stocks, bonds, baseball card set, coin set, etc.

Chapter 7 Bankruptcy-Attorneys Modesto, California

If the value of what you have exceeds your exemptions, then the bankruptcy court can sell off some of the things you have and disperse the money to your creditors. For example, let’s say you exceed your $21,000 wildcard exemption because you have $20,000 in the bank and stocks worth about $9,000. The bankruptcy trustee can take $8,000 in this situation and give it to your creditors.

Chapter 13 Bankruptcy-Attorney Modesto, CA

Chapter 13 Bankruptcies are used to help debtors restructure their debts. As long as the creditors are receiving at least what they would have received in a chapter 7 liquidation, your plan should be fine. You will be required to pay a portion of what you owe your creditors over a period of 3 or 5 years. The bankruptcy court won’t sell your property because you will be making cash payments toward your creditors. For example, if you owe $100,000 toward your unsecured creditors and your plan proposes to pay $300 a month over a 5 year period, you will have paid $18,000 over that 5 year period. The remaining $82,000 of debt will be discharged. This may also include your second mortgage.

Contact Bankruptcy Attorneys in Modesto, CA

Don’t let your creditors run you. Contact a Modesto lawyer at the law office of Ben Roberts today for a free consultation.