Considering Bankruptcy? Frequently Asked Questions are Answered by Highly Regarded Bankruptcy Attorney Matthew Mullhofer

    MARINA DEL REY, CA, January 09, 2010 /24-7PressRelease/ -- Orange and Los Angeles County Bankruptcy Attorney Matthew Mullhofer offers answers to your frequently asked questions.

What is the difference between Chapter 13 and Chapter 7 bankruptcy?

Chapter 7 includes, with few exceptions, complete liquidation of your assets. This is where a good bankruptcy attorney is essential. Some life insurance policies, unemployment benefits, motor vehicle and child support are some possible exceptions. There are others but proper advance planning is essential for the best possible outcome. Good advance planning may allow you to take the fullest advantage of such exemptions.

Chapter 13 bankruptcy is a "reorganization". In most cases you are liable for the repayment of all of your debts. This is especially important if you are still working and can still make monthly payments. If you are not working and your debt exceeds your assets, a Chapter 7 is usually the best option. You can always start with a Chapter 13 then convert to a Chapter 7.

What debts will remain after bankruptcy?

With some exception, you will still be liable for child support & alimony, student loans, federal and state income tax, debts for restitution from criminal convictions and other debts decided by the bankruptcy court.

What happens if my tenant files for bankruptcy?

The filing of a petition for bankruptcy (7 or 13) automatically "stays" any collection efforts of creditors. This means you cannot evict a tenant for foreclose upon a borrower (or, if you have started, must stop proceedings) who has filed. This "stay" does not last forever; you can march into bankruptcy court and request that the stay be lifted against you so that you can proceed with the eviction. Thus, bankruptcy may only delay an eviction a month or two.

How long does bankruptcy stay on my credit report?

Up to 10 years

If I was divorced and my spouse got the house, can I get my name off of the mortgage?

No, you can't. The lien remains when you transfer your half of the property to your spouse. The promissory note for the debt remains your obligation. If your ex is in default, you should try to get the deed back. Once you own the property again, you can and should try to get the deed back. At that time, you can re-negotiate with the lender, rent or sell the property.

For more information on how you can protect yourself from unforeseen tragedies, please contact Los Angeles Bankruptcy Attorney Matthew Mullhofer at [email protected].

Contact Matthew Mullhofer
You can phone, email, fax or write:
The Law Offices of Matthew C. Mullhofer
Broadway Plaza 2107 N. Broadway, Suite 103
Santa Ana, CA 92706
Tel: (714) 827-9955
Fax: (714) 827-9966
[email protected]

http://www.protectmyassets.com/

# # #