Working with a bankruptcy attorney in Alameda County usually means a case that runs from a first consultation to a discharge order issued by the Oakland division of the federal bankruptcy court. Along the way come a trustee review, a meeting of creditors and, for homeowners in Chapter 13, a repayment plan. Here is that path, stage by stage.
Already have a court date or a notice on your door? Call Bob Somal at (415) 754-0115 to request a free consultation and mention the deadline right away, or use our contact page.
Stage one: the consultation and case strategy
Everything that follows depends on the first review. An attorney looks at who you owe, what you own, what the household earns, and whether anything urgent is pending. From Hayward and Castro Valley to Fremont, Oakland, Berkeley and the Tri-Valley, the questions are the same, but the answers differ widely.
The questions that shape the strategy
- Does household income pass the Chapter 7 means test, which starts with the California median?
- Is there home equity, and would California exemptions cover it?
- Are you behind on the mortgage, a car loan or support payments?
- Do you owe taxes, student loans or other debts that bankruptcy treats differently?
- Have you repaid relatives or transferred property recently?
If you are still deciding whether you need representation at all, our article Do I need a bankruptcy lawyer? may help.
Stage two: preparing and filing the petition
Before filing, you complete credit counseling with a U.S. Trustee-approved agency within 180 days of the filing date. Your attorney then prepares the petition, schedules, statement of financial affairs and means test forms from your pay records, tax returns and statements.
The Oakland division
Alameda County cases are filed in the U.S. Bankruptcy Court for the Northern District of California and assigned to the Oakland division, which sits in downtown Oakland. Filing is electronic, and your case receives a number, a judge and a trustee.
The automatic stay
From the moment of filing, the automatic stay generally stops collection efforts: wage garnishments, lawsuits, bank levies, repossession attempts and foreclosure sales. Creditors who continue collecting can face consequences in the bankruptcy court.
Stage three: the trustee and the meeting of creditors
Every case has a trustee. In Chapter 7, the trustee looks for non-exempt property that could be sold for creditors. In Chapter 13, the trustee reviews your plan and later collects and distributes your plan payments.
What happens at the 341 meeting
Roughly three to six weeks after filing, you attend the meeting of creditors. You confirm your identity, testify under oath that your paperwork is accurate, and answer the trustee's questions about income, property and recent transactions. Many sessions are brief and held by video. You must give the trustee your most recent tax return beforehand. For more detail, read what happens at the 341 meeting of creditors.
Stage four: how a bankruptcy attorney in Alameda County uses Chapter 13
For homeowners who have fallen behind, Chapter 13 is often the tool that keeps the house. It works differently from Chapter 7 in several important ways.
Curing mortgage arrears
Missed mortgage payments can be spread over a plan of three to five years while you resume regular monthly payments. If a notice of default has been recorded, or a sale has been scheduled, filing before the sale generally stops it.
Protecting equity above the exemption
If your home equity exceeds what California's exemptions protect, Chapter 13 lets you keep the property as long as the plan pays unsecured creditors at least what they would have received in a Chapter 7 liquidation.
Second mortgages and HELOCs
If the first mortgage exceeds the home's current value, a second loan may be completely unsecured. Courts in the Ninth Circuit allow such a loan to be treated as general unsecured debt in Chapter 13, and once the plan is completed, the lien can be removed. This is not available in Chapter 7.
Plan confirmation
After the meeting of creditors, the court holds a confirmation hearing. The trustee or a creditor may object, and your attorney may need to amend the plan. Once confirmed, the plan becomes binding.
Staying on track during the plan
A confirmed plan still requires attention. Missing plan payments or falling behind on the ongoing mortgage can lead to a dismissal motion or a lender request for relief from the stay. If income drops or expenses rise, your attorney can ask the court to modify the plan.
Stage five: discharge and after
Before receiving a discharge, you complete a financial management course. In Chapter 7, the discharge usually comes a few months after filing if no one objects. In Chapter 13, it follows completion of all plan payments.
What the discharge does and does not cover
The discharge eliminates your personal liability for most unsecured debts. Certain obligations survive, including most student loans, child and spousal support, and some tax debts. Valid liens on property also remain unless dealt with during the case.
The Somal Law Firm, led by Bob Somal, Esq., represents individuals and small businesses throughout Alameda County from its Pleasanton office. Along with bankruptcy, its practice areas include foreclosure defense, loan modification and short sale negotiation, creditor negotiations, and IRS disputes, so options beyond filing can be part of the same conversation.
Frequently asked questions
How long does an Alameda County Chapter 7 case take?
Many individual Chapter 7 cases reach discharge a few months after filing, although asset issues or objections can extend that.
Can I keep my car?
Often, yes, if its equity is protected by an exemption and you continue payments or deal with the loan through the case. An attorney can review your loan and vehicle value.
Do I need to go to the Oakland courthouse?
Many filers never do. Meetings of creditors are frequently held by video, and many cases involve no hearing that requires your attendance.
What if I filed bankruptcy before?
Earlier cases affect both eligibility for a new discharge and how long the automatic stay lasts. Tell your attorney about every prior filing.
Reaching out starts with a conversation, not paperwork. Bob Somal will listen, identify anything time-sensitive, and explain each stage as it would apply to your case. Call (415) 754-0115 to schedule your free consultation, or use our contact page.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.