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Bankruptcy Law in California
Bankruptcy doesn’t mean failure — it means a fresh start. At the Law Offices of James L. Arrasmith, we help people and businesses across California escape debt, protect assets, and rebuild their financial future.
Whether you’re drowning in credit card bills, facing foreclosure, or need a break from relentless creditors, we guide you through every step of the process, with compassion and legal clarity.
Understanding Bankruptcy
Bankruptcy is a legal tool that allows individuals or businesses to eliminate or repay debts under the protection of the federal bankruptcy court. California residents most often file under one of these chapters:
Chapter 7 – Liquidation Bankruptcy
This is the most common type. It wipes out unsecured debts like credit cards and medical bills, but may require selling non-exempt assets. Many filers, however, keep everything thanks to California’s exemption laws.
Chapter 13 – Repayment Plan
This lets you keep your property while catching up on missed payments over 3 to 5 years. It’s often used to stop foreclosures, repossessions, or IRS collections.
Chapter 11 – Business Reorganization
Chapter 11 is used by businesses or high-income individuals to restructure debts and keep operations going.
Signs You May Need Bankruptcy
- You’re behind on mortgage or car payments
- Credit cards are maxed, and collectors won’t stop calling
- You’re using loans to pay off other loans
- Lawsuits or wage garnishments are in motion
- Medical debt is overwhelming your budget
- Divorce or job loss created long-term instability
Bankruptcy isn’t for everyone, but it’s a strategic move toward stability when done right.
What Bankruptcy Can Do for You
- 🛑 Stop creditor harassment
- 🏠 Halt foreclosure
- 🚫 Prevent utility shut-offs
- 💳 Eliminate credit card and medical debt
- 🛡️ Protect your car, wages, and household goods
Bankruptcy gives you breathing room. The moment you file, the court issues an automatic stay — a legal wall that blocks collection calls, wage garnishment, and even pending lawsuits.
What Bankruptcy Can’t Do
- It won’t wipe out recent taxes (in most cases)
- Child support and alimony can’t be discharged
- Student loans are difficult — but not impossible — to eliminate
- Secured debts (like car loans) may require surrender or continued payments
That’s why it’s essential to talk with a bankruptcy attorney who understands California law and federal exemptions.
California Bankruptcy Exemptions
California offers two exemption systems (703 and 704), and choosing the right one can make the difference between keeping your property or losing it.
We’ll help you decide which works best for your home equity, retirement accounts, vehicles, tools of trade, and more.
Why Clients Choose James L. Arrasmith
- Over 15 years of legal experience in California
- Clear, judgment-free bankruptcy guidance
- Focused on asset protection and long-term financial health
- Deep knowledge of local court practices and trustee expectations
- Available for post-filing strategy — including rebuilding credit
When your financial life feels like it’s collapsing, we help you rebuild — stronger than before.
Bankruptcy FAQ
Will I lose everything if I file for bankruptcy?
No. Most clients keep all their property thanks to legal exemptions.
How long will bankruptcy stay on my credit?
Chapter 7 stays for 10 years; Chapter 13 stays for 7. But many clients see their credit improve faster than expected.
Can bankruptcy stop a foreclosure?
Yes. Filing triggers an automatic stay that pauses the foreclosure process.
How much does it cost to file?
Court fees are around $300–$350. Attorney fees vary by case complexity — we provide clear estimates up front.
Let’s Talk About a Fresh Start
Bankruptcy is not the end — it’s a legal way to begin again. At the Law Offices of James L. Arrasmith, we treat every case with discretion, care, and a focus on real outcomes.
📞 [Schedule your consultation] today. Let’s build your financial reset — together.
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