Whittier Bankruptcy Law FAQs

Many people who file keep their home. California's homestead exemption protects equity in the home you live in, and it was greatly increased in 2021. If you are behind on payments, Chapter 13 can stop a foreclosure and let you catch up over time. We review your home's value and equity before you file. Learn more about bankruptcy exemptions.

Usually, yes. Both California exemption systems protect some equity in a vehicle. If you have a car loan, you can usually keep the car as long as you stay current on payments. If you are behind, Chapter 13 may let you catch up through your plan.

Yes, in most cases. When your case is filed, the automatic stay orders most creditors to stop collecting. That includes wage garnishments, bank levies, lawsuits and collection calls. Some debts, like child support, are treated differently.

No. You do not have to tell your employer, and the court does not usually notify them. Your employer may find out if it is handling a garnishment, or if Chapter 13 plan payments are taken from your paycheck. Federal law says a private employer cannot fire you just because you filed bankruptcy.

Chapter 7 wipes out many debts in about three to four months, but you must pass a means test. Chapter 13 sets up a three-to-five-year repayment plan. It is often used to save a home from foreclosure or by people who earn too much for Chapter 7. We help you compare both at your consultation.

Usually not. Student loans can only be discharged if you prove that repaying them would cause "undue hardship." This requires a separate case within your bankruptcy. Recent federal policy changes have made this process somewhat more workable for some borrowers, so it is worth asking about.

Most recent taxes are not discharged. Some older income taxes can be wiped out if they meet certain timing rules about when the return was due and filed and when the tax was assessed. In Chapter 13, taxes that cannot be discharged can often be paid through the plan over time.

There is no lifetime limit, but there are waiting periods before you can get another discharge. For example, you generally must wait eight years after filing one Chapter 7 case before you can get a discharge in another Chapter 7. The waiting periods are different for other combinations of Chapter 7 and Chapter 13. We check your filing history before recommending a new case.

Usually not. Most retirement accounts, such as 401(k) plans and pensions, are protected. Many IRAs are also protected, with some limits. Taking money out of retirement to pay old debts is often a mistake, so talk with us before you do.

A bankruptcy can stay on your credit report for several years. Still, many people begin rebuilding their credit soon after their case ends, especially once old debts are gone and new bills are paid on time. Bankruptcy is not the end of your financial life.

Your consultation is free, and we explain our fees clearly before you decide anything. Separate from attorney's fees, the court charges a filing fee. The court's filing fee is currently $338 for Chapter 7 and $313 for Chapter 13. In Chapter 7, you may be able to pay the court fee in installments or ask the court to waive it if your income is low enough.

Call us right away. In some cases, we can file a short emergency petition to put the automatic stay in place, then finish the remaining paperwork afterward. You still need to complete credit counseling first. Read about filing an emergency bankruptcy.