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, typically 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. However, we will dig deep to uncover any mitigating circumstances that might allow you to file a Chapter 7, if it is in your best interests.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 now have to file under Chapter 13 bankruptcy instead, 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. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

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.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

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 ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: 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 Bankruptcy: 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. Also, filing a Chapter 13 might provide an opportunity to strip off one or more underwater junior liens.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue but it might be the only vehicle available if a consumer is over the debt limits for a Chapter 13. It allows businesses and individuals with large debts to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

If you or someone you know needs the assistance of an experienced Oakland Bankruptcy attorney, call Law Offices of Selwyn D. Whitehead today at 866-902-4042, or complete the contact form provided on this site to schedule a free consultation.

We are a debt relief agency. We help people file bankruptcy petitions to obtain relief under the bankruptcy code.

If you or someone you know needs the assistance of an experienced Oakland Bankruptcy attorney, call Law Offices of Selwyn D. Whitehead today at 866-902-4042, or complete the contact form provided on this site to schedule a free consultation.

We are a debt relief agency. We help people file bankruptcy petitions to obtain relief under the bankruptcy code.

ADDRESS OF THE FIRM:
Law Offices of Selwyn D. Whitehead

Main Office (Send Mail to this Address):
4650 Scotia Avenue
Oakland, CA 94605
Phone: 866-902-4042

Satellite Office:
22320 Foothill Boulevard, Suite 330
Hayward, CA 94541
Phone: 866-902-4042

Hours: M-F, 8:30AM-5:30PM
Evening and weekend appointments may be available

MEMBERS OF THE FIRM:

• Attorney Selwyn D. Whitehead

Selwyn Whitehead is a San Francisco Bay Area tax attorney whose practice focuses on helping her clients manage their wealth through effective estate and tax planning and/or manage their debt through debt restructuring or bankruptcy. Prior to founding Selwyn's Law, Selwyn managed a group of attorneys and paraprofessionals in Fireman's Fund Insurance Company’s Claims Department, where she was responsible for auditing the claims and case handling practices, performance, fees, and expenses of outside defense counsel.

Before joining Fireman’s Fund, Selwyn spent the preceding 17 years as a financial services industry consumer advocate. She held leadership positions at the Law Offices of Public Advocates and The Greenlining Coalition, was a consumer representative to the California Automobile Assigned Risk Plan, and founded and still leads the non-profit Economic Empowerment Foundation, whose mission is to educate urban dwellers, small business owners, and women about their rights and responsibilities as financial services industry consumers, while advocating on their behalf before regulatory and governmental bodies. Between 1993 through 1998, she was selected by the Officers of the National Association of Insurance Commissioners to represent the interests of California insurance consumers before that body as one of only 12 Consumer Representatives from around the country. In that role she helped provide the consumer’s perspective to the Commissioners and their staff during their deliberations on model insurance laws and regulations.

In the fall of 1998, nearly two decades after receiving her undergraduate degree in Business Administration, Selwyn entered law school and obtained her J.D. from New College of California, School of Law . She then went on to Golden Gate University , School of Law to obtain two legal masters degrees: One, a Master of the Laws of Taxation, with honors and the other, a Master of the Laws of Intellectual Property. Selwyn who is a proud member of the National Association of Consumer Bankruptcy Attorneys, is admitted to practice in California, also holds a California Real Estate Brokers License and has demonstrated a life-long commitment to helping people solve their financial problems and lead a more economically empowered life.