loom legal

A Professional Corporation

Loom Legal, A Professional Corporation, is a debt relief agency as defined under Section 101 of the U. S. Bankruptcy Code. We help people file for relief under the Bankruptcy Code. The content on this site is for informational purposes only. Loom Legal uses a written contract for each client and will only be representing you if you and the law firm sign a written legal representation contract and you pay law firm for the bankruptcy legal services it performs for you.

Direct Line

(310)594 - 7646

A Professional Corporation

Est. 2009

Providing Representation in Los Angeles County, San Diego County and Orange County.

Bankruptcy

 

Bankrupty is rooted in U.S. history. Bankruptcy is found in Article I Section 8 of the United States Constitution, thereby stating in the powers given to Congress:  "To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States..." This concept is not novel or new, but it comes from English bankruptcy law that was passed during the rein of Henry VIII in 1570.

 

In the U.S. bankruptcy law has taken many reformations throughout the 19th and 20th century. While the concepts of appointing a trustee, establishing an estate and providing for creditors can be dated back to the Roman Empire, the governing rules of American Bankruptcy Law can be found in the U.S. Bankrupty Code.

 

Pursuant to the sections of the Bankruptcy Code referenced above, individuals are given the opportunity to file under many different chapters of the code: Chapter 7, 9, 11, 12, 13, and 15. Mainly, individual consumers with no or little property (personal and real) tend to file under Chapter 7, also known as a liquidation. (also see exemeptions). Individuals consumers with personal or real property, which they wish to protect and keep, tend to file under Chapter 13, also known as a reorganization.

 

Within both Chapter 7 & 13 Bankruptcy, debtors are provided the protection of the Automatic Stay (under Section 362) upon filing their petition. After filing, the debtor is required to attend a Creditors Meeting, which is usually scheduled thirty (30) days after the petition filing date.

 

The Creditors Meeting, which is usually quite informal, provides the opportunity for the appointed trustee, any creditors or the U.S. Trustee to ask any questions in regard to the petition. Should there be no objections or challenges to the petition, under a Chapter 7, debtors would be granted a discharge of eligible unsecured debt between 2-3 months after the Creditors Meeting.

 

For additional information and legal advice for your needs, please contact us directly at (310) 594-7646 or email at Omid@LoomLegal.com