Hernandez Legal Group | Pasadena, CA 91101

Many people hesitate to consider bankruptcy as an option for debt relief, even when they are struggling with staggering amounts of debt such as: mortgage payments, medical bills, credit card bills and car payments.

There is a stigma associated with bankruptcy, that fortunately is fading as more people come to realize that the federal bankruptcy laws are a national debt relief program specifically designed for people in dire financial circumstances with no other option.

Going bankrupt is not the end of your financial life, either. You will qualify for credit in the future, and with proper guidance you may even be able to keep possession of your home and vehicle.

Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor's assets and liabilities and provides a structure within which the debtor is allowed to keep some, and in most cases, all property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud and most tax debt.

The traditional stigma of bankruptcy has faded and been replaced by the view that it is a fresh start after a time of trouble. Most bankruptcy debtors have experienced unexpected and extreme financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce or illness.

In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney, to help you to assess your legal options.

Bankruptcy law is primarily federal and administered by the federal courts. However, the various states' consumer and commercial laws do play important roles in certain bankruptcy issues and some circumstances.

Bankruptcy is an available option for individual consumers, businesses, farmers and municipalities. There are two major bankruptcy types: liquidation and reorganization. For practical purposes, many debtors have so-called no-asset cases where all of the debtors' property is exempt from the liquidation requirement and eligible debt is discharged without any property being sold.

The Hernandez Legal Group provide the following general information about both bankruptcy and NON-Bankruptcy options. For answers to questions specific to your circumstances, we encourage you to contact our offices for a free and confidential initial consultation.