At Kyllander Law, APC our goal is to educate and assist honest people who are struggling financially.  We take a personal approach to a very difficult and often emotional subject and we take pride in the relief that we provide to our clients.  In most cases, our representation involves filing for bankruptcy but we understand that bankruptcy is not for everyone and offer alternative solutions whenever available.

Our practice is devoted towards helping clients, just like you, regain financial control in their lives.  We understand the economic problems facing individuals and families today and know how to use the current laws to help our clients obtain a “Fresh Start.”

Our office is centrally located in Santa Ana and we are bankruptcy lawyers assisting people with debt relief and bankruptcy in Orange County, California.

 So what exactly is “bankruptcy”?

Bankruptcy is a legal solution for situations when someone owes more than they are currently able to repay.  The law itself is a federal law and can be found in Title 11 of the United States Code.  The goal of bankruptcy law is to benefit both the party that owes the money (Debtor) and the party who lent the money (Creditor) – a balancing act which takes into account many different factors.

Although there are five types of bankruptcies, commonly identified as “Chapters,” available for individuals and businesses, at Kyllander Law, we represent parties in Chapter 7 and 13.

Chapter 7 is the most common form of bankruptcy and is also known as a liquidation.  Individuals, married couples, and businesses can all file Chapter 7.  In a Chapter 7 proceeding, the Debtor, turns over any non-exempt assets to a Trustee who sells those assets to pay off as much of the debt as the proceeds allow.  It is really important to hire an attorney to assist you with the exemption (asset-protection) piece in a Chapter 7 case as petition preparation services and non-attorney’s are not authorized to provide the necessary legal advice and a mistake in this area could result in losing property that otherwise may be protected.

If done properly, many Chapter 7 cases are in fact, “no-asset” cases, meaning that there is nothing for the Trustee to liquidate and therefore no payments are made to creditors.

At the conclusion of the Chapter 7 case (typically 4-6 months) any creditor balances remaining are legally discharged (although certain types of debts are non-dischargeable in Chapter 7).

Chapter 13 is a reorganization and is also known as a “wage-earner” plan.  Only individuals and married couples who have regular income are eligible to be debtors in a Chapter 13.

In a Chapter 13 case, the debtor does not have to turn over any of his existing property to the Chapter 13 Trustee, but he does commit to making a monthly payment for 3 to 5 years.  There are basically three different tests for determining what the plan payment will be and it is important that you obtain competent legal advice when proposing a Chapter 13 Plan.

Repayment to creditors in Chapter 13 can range from 0% to 100% of the debt owed depending on the debtor’s income, the value of his assets and the classification of the debt.

Today, Chapter 13’s are commonly used as a legal mechanism to stop the non-judicial foreclosure process in California.  If you have received a Notice of Default and want to discuss how a Chapter 13 can help you stay in your home, fill out the contact form on this page or call to schedule your free case evaluation.

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