Practice Areas and Legal Definitions

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors can still file under Chapter 7. However, a small portion of debtor may be required to file under chapter 13, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only two ways to save your house from foreclosure are by making a full payment of the arrearage, or by filing a Chapter 13 bankruptcy. Full Payment Option: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. Chapter 13 option: This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

If you or someone you know needs the assistance of an experienced Los Angeles Bankruptcy attorney, call Girgis Law Firm today at 866-768-2619, or use the contact form provided on this site to schedule a free consultation.

If you or someone you know needs the assistance of an experienced Los Angeles Bankruptcy attorney, call Girgis Law Firm today at 866-768-2619, or use the contact form provided on this site to schedule a free consultation.

ADDRESS OF THE FIRM:
Girgis Law Firm
15915 Ventura Blvd., Suite 303
Encino, CA 91436
Phone: 866-768-2619
Hours: M-F, 8:00AM-5:00PM
Services provided after-hours

MEMBERS OF THE FIRM:

Attorney Anthony R. Girgis

• Jurisdictions Attorney is Licensed in: California, Central District
• Date Admitted to the Bar: 2007
• Colleges Attended, Degree & Year Graduated: UCLA 2002, Whittier Law School 2006, J.D.
• Professional Memberships & Achievements: Central District Consumer Bankruptcy Attorneys Association (CDCBAA) and the State Bar of California