There are two types of Bankruptcy.


 The first is called Chapter 7 and it "wipes the slate clean" by discharging your unsecured debt--this includes debt such as medical bills,

 credit cards, deficiency balances. Qualifying for a Chapter 7 is capped by income standards set by the IRS. In general, most people with

 modest incomes will qualify. Our office can help you determine if Chapter 7 is the right choice for you. You are in a Chapter 7 

 bankruptcy for approximately 3 months. At the conclusion, your debts will be "discharged" meaning they are no longer legally able to  

 be collected.

 

 Chapter 13 Bankruptcy is more complicated process that lasts between 3 and 5 years.  In Chapter 13 your debts, assets and income are 

 tallied and a repayment plan is tailor made to fit your needs. Mortgages, cars, and other secured debts are given priority. In general,  

 only a small (if any)  portion will be paid to your unsecured creditors (credit cards, medical, etc.). In Chapter 13, you make your  

 monthly payment to the US Trustee who in turn pays your debts. At the conclusion of your 13, any balances left on unsecured debts

 are  duly discharged. In many cases, a Chapter 13 can eliminate second mortgage debt as well.

 Please see our Bankruptcy FAQ handout or the first two pages of our Bankruptcy Questionnaire for more specific and detailed

 information on the bankruptcy process, your responsibilities and our office procedures.

Law Offices of Michael O. Hays
Northern California Bankruptcy Specialist

How Does Bankruptcy Work?

Bankruptcy Questionnaire

Contact Us, Today!

(530) 892-8916

(800)387-9299


Please complete a copy of our Bankruptcy Questionnaire and bring it with you to your free consultation appointment.


The first two pages of the questionnaire are informational and discuss price, payment options, general bankruptcy practices and our office policies.