Frequently Asked Questions

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FAQ

What Is The Bankruptcy Process?

Bankruptcy is a method of canceling debt, primarily that without collateral, for individuals, couples, and companies that have gone out of business. It is also a method of restructuring debt for individuals, couples and companies that continue to operate. the different forms of bankruptcy are organized into different “Chapters,” all of which have their own rules and procedures.

What Is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy: this is called “liquidation bankruptcy.” It is primarily for an individual or couple’s consumer debt. He, she, or they can receive a “discharge,” which allows them to walk away from most unsecured debt, that is, does not have collateral. However secured debt, such as mortgages, and car loans, do not go away. Those loans must continue to be paid, or that property may be lost. Companies that file for Chapter 7 must cease to operate. The company does not receive a discharge, but the unsecured debt is effectively cancelled. Collateral may be seized and sold by the creditors, with the permission of the court.

What Is An Alternative To Chapter 7 Bankruptcy?

Chapter 13: This is often referred to as “wage earner bankruptcy,” and a couple or individual is allowed to pay back secured debt over a three to five year interval. Many unsecured debts will go away. However, the payment schedule to creditors is very strict, and failure to make payments may cause the case to be converted to a Chapter 7, or dismissed, or worse, the subject of a breach of contract action in state court.

Can An Individual File For Chapter 11?

Chapter 11: until recently, this was primarily the province of large companies and organizations, such as the Los Angeles Dodgers, Reader’s Digest, General Motors, and other such organizations. The enterprise puts forth a plan of reorganization, which is reviewed by a creditors committee, made up of the largest creditors. There is than a back and forth regarding the plan, which the court must eventually approve or disapprove. increasingly, individuals have taken advantage of Chapter 11, but it may be an expensive and very combative process.

Is Bankruptcy A Sin Or A Crime?

It is neither. It is a legal and financial strategy, used by individuals, companies, and business owners. Bankruptcy is contemplated by the United States Constitution: Article 1, Section 8, Clause 4, which gave Congress the authority to establish bankruptcy laws. in other words, bankruptcy has been one of the hallmark achievements of the new, United States, when it was founded in the late 18th century.

The US State Department has touted bankruptcy as an advantage to entrepreneurs from overseas who may wish immigrate to the US, to take business risk, with the additional protection of the US bankruptcy law.

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From Our Clients*

*As with anything, these previous results do not result in a guarantee of success in any future case, because each borrower, and each case, is different.

The US Trustee would have sold our house in the bankruptcy. Through Mr. Wiggins we were able to procure a loan to pay off the equity. We kept our house and discharged the unsecured debt.
We are grateful to Mr. Wiggins for helping us keep our home.

DP, Bellflower

I’m glad Mr. Wiggins was fighting for us. We knew that the other side could have an army of attorneys going after us as soon as we went to court. But he thought the case would go away. He was right. The debt was dismissed. We are very grateful.

BD, Long Beach

The US trustee wanted to take away all of our life insurance. Mr. Wiggins was able to convince him that the life insurance was fully exempt.
He was able to protect this valuable asset.

JJ, Los Angeles

The case proceeded exactly as Mr Wiggins outlined. I was able to recover a large amount of mortgage overpayment. It was awesome.

HA, Brea

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