Bankruptcy questions, plain answers

Yes. Your first consultation with Mario is free and there’s no obligation to file. You can meet with him in person at his Fresno office, or by phone or video.

You’ll talk to Mario. He answers his own phone, meets with every client personally, and handles your case from beginning to end.

A lawyer is not legally required, but it’s not a good idea to do it alone. Even seemingly simple cases can hide complex issues, and an experienced lawyer helps protect your property and your discharge.

If you have them: six months of pay stubs, your last two tax returns, recent bank statements, your bills and collection letters, and any lawsuit or garnishment papers. Don’t worry if you don’t have everything — come in anyway.

Attorney fees depend on your case. After your free consultation, Mario will quote you an exact fee for your case, and payment plans are available. The court’s Chapter 7 filing fee is currently $338. You’ll also complete two short required courses (credit counseling and debtor education), which typically carry small fees.

Not necessarily. California exemptions protect a certain amount of equity in a home, a vehicle, household goods and more. Many Chapter 7 filers keep everything. Whether you can keep a particular item depends on its value, how much you owe, and which exemptions apply.

Mario files primarily for business owners — sole proprietors and individuals whose business debts now affect them personally, for example through personal guarantees. In most cases, Mario refers Chapter 7 filings for an LLC or corporation itself to another attorney, but he’s glad to talk it through with you first. If you own an LLC or corporation, call (559) 233-1111 for a free consultation about your situation and your options as an owner.

Most people with mainly consumer debts take the means test. If your average household income over the last six months is at or below the California median for your household size, you generally qualify. If it’s higher, allowed expenses are subtracted to see whether you could afford to repay creditors. People whose debts are mostly business debts may not need to take the means test at all.

Common exceptions include child support and alimony, most student loans, most recent income taxes, criminal fines and restitution, and debts from drunk-driving injuries.

Filing triggers the automatic stay, which generally stops garnishments, bank levies, lawsuits, repossessions, foreclosure sales and collection calls. How long the protection lasts — and whether you can keep a home you’re behind on — depends on your situation. If saving a house is the goal, Chapter 13 may be the better tool.

A typical case takes about three to four months from filing to discharge. The meeting of creditors is usually about a month after filing.

Usually not. Most people attend just one short meeting — the “341 meeting of creditors” — with the trustee, not a judge. Meetings of creditors are currently held by video, and Mario prepares you for it and attends with you. Creditors rarely show up.

Chapter 7 usually wipes out qualifying debts in a few months without a repayment plan. Chapter 13 is a three- to five-year repayment plan that can help you catch up on a mortgage or car loan, protect property, or file when your income is too high for Chapter 7. Mario handles both.

A Chapter 7 bankruptcy can stay on your credit report for up to ten years, but for many people already behind on bills, their score starts to improve after the discharge because the debts are gone. You can begin rebuilding credit right away.

Bankruptcy filings are public records, but employers are not normally notified unless your wages are being garnished. Private employers cannot fire you solely for filing bankruptcy.

Usually you can keep a bank account, though it’s wise to move it away from any bank you owe money to before filing. Ask Mario about the details for your situation.