Bankruptcy

The law office of Hillman & Lucas, PC maintains a strong bankruptcy practice throughout Solano and surrounding counties, focusing principally on debtor representation in Chapter 7 and Chapter 13 bankruptcy.  Attorney Joseph Canning leads the firm's bankruptcy practice and is admitted to practice before the U.S. Bankruptcy Court for the Eastern District of California.  Mr. Canning has the expertise to advise clients on their legal options in bankruptcy, and the skill to effectively represent their interests throughout the process.

Chapter 7

Chapter 7 bankruptcy is often the best option for people with mounting personal debts who are not able to meet those obligations within their current financial means.  Chapter 7 offers a way for people to get out from under that debt.  Under Chapter 7, all of a debtor's non-exempt assets are liquidated, with the proceeds going to pay off the creditors.  Once the proceeds have been distributed, any remaining debts are discharged by the bankruptcy court.

Although this method may sound like a drastic approach, note that only non-exempt assets are liquidated. The debtor is allowed to retain many important and necessary possessions, such as equity in the home and home furnishings, clothing, and other personal possessions.

Chapter 7 is intended to give the debtor a fresh start, but it cannot wipe the slate entirely clean. Certain debts are non-dischargeable, such as student loans, child support and spousal support obligations, and tax claims or other debts owed to the government.  Still, Chapter 7 can offer significant and effective relief for persons who are deeply in debt.

Chapter 13

Individuals who do not qualify for Chapter 7 may be able to find relief through Chapter 13. 

Chapter 13 is most appropriate for an individual with a steady income who is able to make monthly payments toward a payment plan.  The focus of Chapter 13 is to give the debtor some breathing room and time to develop a debt consolidation plan which will pay off debts within his or her means.  A Chapter 13 wage earner's plan, as it is known, sets out a road map to pay off those debts in a three-to-five year period. Creditors will be bound to accept the terms of the payment plan and may not initiate other debt collection practices.

Seek Quality Advice and Experienced Representation

A Chapter 7 bankruptcy stays on one's credit record for ten years, and a Chapter 13 for seven.  This fact can hamper one's ability to rebuild credit or obtain employment.  A bankruptcy should not be entered into lightly and should only be initiated after consultation with an experienced bankruptcy attorney.  For advice and representation in a bankruptcy or related proceeding in Fairfield-Suisun or anywhere in Northern California, contact Joseph Canning at the law office of Hillman & Lucas, PC.