Law Offices of Nicholas Gebelt


Bankruptcy is a loaded term, to say the least. We are often associate bankruptcy with failure and shame. However, that perception couldn’t be further from the truth.

Bankruptcy isn’t a death sentence for your credit or your financial prospects. Rather, it’s a tool that is very commonly used by people who have accumulated an unmanageable amount of debt and need a financial fresh start.

Why do people file for bankruptcy?

There are several reasons why someone might have unmanageable debt, many of which can happen through no fault of their own (such as emergency medical costs). Many Americans live paycheck to paycheck, and can be financially devastated by any unexpected expense. Since life often happens unexpectedly, it’s rather common for people to find themselves suddenly in debt.

General Information:

Are there different types of bankruptcy?

Yes, there are six different types of bankruptcy. However, most individuals filing for bankruptcy will file for one of two types: Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.

What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is the most common type of bankruptcy. In order to qualify, your income must be at or below the median income in California for a household of your size (though there are some exceptions).

When you file for Chapter 7 Bankruptcy, all of your unsecured debts will be discharged, meaning you will no longer be responsible for paying them. Filing for Chapter 7 triggers an automatic stay, stopping all collections on those debts—including creditor calls, foreclosure, and wage garnishment—until the bankruptcy case is resolved. Unsecured debt includes many common types of debt, such as credit card debt and medical debt. Other types of debt cannot be discharged through Chapter 7 Bankruptcy (including student loans, mortgages, and alimony/child support payments).

In exchange for discharging all your unsecured debts, Chapter 7 Bankruptcy involves liquidating your assets in order to pay off your creditors. However, most people who file Chapter 7 can declare all or nearly all of their assets from being liquidated (under a certain value). This means that many filers can keep all or nearly all of their possessions.

What is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is generally used by people who need time to catch up with their debt, but will have a steady source of income moving forward. Chapter 13 filers to pay off debt over several years through a repayment plan. While in the plan, debtors continue making payments on secured loans, and any remaining income not spent on reasonable necessities goes toward the plan. It is designed to help filers reorganize their finances in order to keep high-value or high-equity assets that are not exempt from liquidation, such as a home over a certain value. Filing for Chapter 11 triggers an automatic stay, which continues so long as the filer keeps current with their payment plan.

Are you struggling with debt and considering filing for bankruptcy in Whittier, CA? Attorney Nicholas Gebelt can help. Call (562) 777-9159 for a free 20-minute strategy session today.

People filing for bankruptcy in Whittier, CA, often have a lot of questions to ask. For example, if they are married but are going through a divorce, they may be wondering if they can file for bankruptcy and how it will affect their divorce. Similarly, anyone filing for bankruptcy would also be interested in knowing how they can ensure Asset Protection through divorce, and also how to file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy. People also ask questions about how their life will be affected after they file for bankruptcy, how to choose the right bankruptcy lawyer and so on. If you need information on any of these questions, simply give us a call at (562) 777-9159 to speak with our California personal bankruptcy lawyer. Our Whittier, CA Personal Bankruptcy lawyer will give answers to all your questions and concerns.

Attorney Nicholas Gebelt

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In light of the COVID-19 (coronavirus), we offer our clients the ability to meet with us via video conferencing and telephone. Please call our office at (562) 777-9159 to discuss your options. We are here for your legal needs now and in the future. Thank you.

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