Orange County Bankruptcy Lawyer – Orange County Chapter 13
Orange County bankruptcy is not a recent concept. Societies, in the past, have readily recognized bankruptcy and established laws, in some form or another, in relation to bankruptcy. Past bankruptcy laws have advanced from being a tool to imprison a debtor to force them to pay back their creditors to being used as a process for the collection and liquidation of the debtors’ assets and repaying their debts. In recent years, courts around the country have held, in numerous cases, that the fundamental purpose of bankruptcy is for financially-distressed individuals and corporations to be able to obtain a fresh start. Call an Orange County Chapter 13 lawyer to find out how you can get the fresh start you deserve.
In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was enacted into law to make several significant changes to the Bankruptcy Code. The changes included in the new law affected both business and consumer bankruptcies, including Chapter 7, Chapter 13 and Chapter 11.
In a Chapter 7 case, most debts are discharged, while in a Chapter 13 case certain debts incurred are discharged only after the debtor has repaid some of his debts. The BAPCPA provides that only debtors with monthly income below the median income amount of the debtor’s state may file under Chapter 7. A “means test” is used to determine this. If you are contemplating on filing a Chapter 13 case in Orange County, your monthly income must be above the median income amount of the state of California, as determined by the bankruptcy code.
The amendments contained in the BAPCPA have caused confusion and elicited several negative commentaries from lawyers and law scholars. In the Ransom v. FIA Card Services, N. A. decided by the Supreme Court in January 2011, it seems that the court veered away from the concept of giving debtors a fresh start by filing for bankruptcy, and instead reverted to bankruptcy’s old purpose of forcing debtors to repay their creditors as much as they can. Only time will tell if this is the new direction the High Court takes.
Not all financial problems are the same. Since 1976, our firm has handled thousands of complex and individual bankruptcy cases all over Southern California. One debtor may need to seek protection under Chapter 13 and another may best liquidate under Chapter 7. The award-winning lawyers at The Law Office of Harold D. Thompson are highly skilled in maximizing the laws to help financially-distressed individuals obtain a fresh start. Please call our office at 888.665.8330 for a free-no hassle consultation, download a copy of our free California Guide to Bankruptcy or find out how you can become a client right now.
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