Bankruptcy
It can happen to anyone: every year, over 700,000 Americans declare bankruptcy. Bankruptcy is a legal process designed to help people and companies eliminate or repay their debts under the protection of the federal bankruptcy court.
The decision to file bankruptcy can be a tough one – that is why it is so crucial to seek professional legal guidance regarding your specific situation to see if bankruptcy filing is right for you. It’s not a sign of failure; it’s a legal process and tool that can give you the opportunity to rebuild and move forward.
We at the Law Office of Thomas P. Hogan are experts in the field of bankruptcy in the state of California. Bankruptcy is a federal legal process, but the state of California has its own special exemption systems that outline what assets an individual may retain. Our office has a long and renowned track record in the fields of bankruptcy and debt relief/settlement. Contact us for a consultation where we can listen to your situation, offer clear and tailored guidance to your personal situation, and determine the best course of action moving forwards.
Chapter 7 Bankruptcy, often referred to as liquidation bankruptcy, is the preferred choice for individuals facing high debts with a limited income, who are seeking a clean financial slate. Declaring Chapter 7 bankruptcy provides the debtor with a fresh start by discharging unsecured debts. Afterwards, individuals can crucially rebuild their credit and financial stability while avoiding legal action, wage garnishments, steep payback plans, and creditor calls.
The state of California offers two sets of bankruptcy exemptions:
System 1 (704 Exemptions): Better for homeowners with equity – allows you to protect up to $678,391 in home equity (as of 2025, adjusted for inflation).
System 2 (703 Exemptions): Better for renters or those without substantial home equity – provides a larger “wildcard exemption” to protect cash, bank accounts, or vehicles.
Our office will help you choose the exemption system that best fits your circumstances.
Chapter 13 Bankruptcy, often referred to as reorganization bankruptcy, is a common route to take for those individuals who have significant income or assets but cannot afford to repay all of their debts, by establishing a repayment plan over 3-5 years. Declaring Chapter 13 Bankruptcy crucially allows for a debtor keep their home, vehicle, or other large assets, making it a very considerable option to Californians facing foreclosure or tax debt. Chapter 13 Bankruptcy consolidates the debt one faces into a manageable single monthly payment that is automatically distributed to one’s creditors, and can be very helpful in stopping foreclosure or repossession of one’s assets.
Our office can help you decide which route (Chapter 7 or Chapter 13) bankruptcy is right for you.
Debt Relief and Debt Settlement
Bankruptcy can be a very useful legal tool, but it is not always the best course of action for everyone’s circumstances. Depending on your situation, debt relief or debt settlement may provide a faster and more suitable path to financial stability.
Debt settlement involves negotiating directly with creditors to reduce the total balance owed, often in exchange for a lump-sum or structured payment plan. This approach can help you avoid the court process while still achieving meaningful debt reduction. Doing so avoids the long-term impact of bankruptcy on one’s credit report, and allows for more privacy and flexibility than a formal bankruptcy filing. Our office has worked successfully many times with our clients and their creditors to reach mutually beneficial settlements that resolve the liability for the client.