Castillo Law Firm

Most people think of bankruptcy as a sort of "do over." However, the U.S. Bankruptcy Code can do so much more than that.

Did you know, for instance, that through a bankruptcy you could save your home, get rid of certain business debts (and still keep operating the business), get rid of some outstanding income and certain taxes, get rid of a second (or 3rd) mortgage, remove judgment liens from your property, and even pay back your mortgage arrears through the bankruptcy court?

Chapter 7 Bankruptcy, also known as liquidation, is the most common form of bankruptcy. Do not be alarmed by the word "liquidation". It means that if you qualify to file chapter 7 Bankruptcy you can be relieved of the responsibility to pay most of your debt and still keep much of your property which can be protected under the generous California Exemptions.

Unlike a Chapter 7 Bankruptcy that can liquidate nonexempt property and discharge any remaining debt, a Chapter 13 Bankruptcy, or Wage Earner's Plan, permits you to keep most or all of your property and consolidates a portion of your debts, if you agree to on a repayment plan for your creditors over the course of three to five years.

We can evaluate your situation to determine the best course of action for you, whether that be debt negotiation, filing chapter 7, filing chapter 13, filing chapter 11, short selling your home, or negotiating with your lender. If you are caught in an endless cycle of debt, it is not your fault.

Exorbitant interest rates on credit cards, medical bills and job loss are a few of the many reasons that cause financial hardship and can happen to anyone.Millions of Americans throughout the U.S. are struggling to make ends meet. Unfortunately it's no different in Southern California. More and more people are facing unemployment, illness, death, divorce, rising interest rates, and so on.

Too Many Assets: Although California offers its residents generous exemptions to protect assets in bankruptcy, some clients simply have assets that cannot be protected. For example, you may own valuable stocks and bonds, or have significant equity in real property or a business. In these cases, clients often elect to settle their debt at a steep discount rather than risk their assets in bankruptcy.