Our Practice

Bankruptcy

Tsao-Wu, Chow & Yee LLP maintains an established and seasoned bankruptcy practice. We handle both commercial and consumer bankruptcy cases, counseling our clients both before and after bankruptcy, working with each one individually to find workable solutions. We understand the difficulties you face. Most debtors have done everything possible to avoid bankruptcy and that often things have only gotten worse. Let an experienced professional help you put an end to the misery of financial uncertainty. Even before your bankruptcy petition is filed, an attorney can shield you from creditor harassment.

There are several types of bankruptcy, the most common being under Chapter 7 and Chapter 13. In Chapter 7, any property of value will be sold or turned into money to pay your creditors. However, you may be able to keep some personal items and real estate (to protect the equity in your real property). Under Chapter 13, you can usually keep your property, but you must earn wages or have some other source of regular income and you must willing and able to pay part of that income to creditors.

Many people file for bankruptcy is to get a "discharge". A discharge is a Court order that says you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge debts for most taxes, child support, alimony, most student loans, court fines and criminal restitution, and personal injury caused by drunk driving or under the influence of drugs.

If you own your home, and are significantly behind in your mortgage payments, the company that owns your mortgage may start legal proceedings to foreclose on your home. If you have been served with legal papers starting such a foreclosure action against you, there is only a limited amount of time to take action to save your home. Filing for bankruptcy before the scheduled date of the foreclosure sale automatically stops the foreclosure sale from taking place.