Chapter 7 Bankruptcy

Chapter 7 Bankruptcy gives you a way to eliminate all or most of your debts and obtain a fresh financial start.  Most of the time the process is simple and painless.  But without the help of an experienced attorney, the process can be daunting to say the least.  Let’s talk about Chapter 7 Bankruptcy:

Chapter 7 Bankruptcy is also called a “liquidation” bankruptcy.  Oakland and Bay Area residents who file for Chapter 7 bankruptcy typically do so because they are overwhelmed with debt and can’t pay their existing bills.  Chapter 7 Bankruptcy is many times the best legal and ethical way to eliminate these debts.

This type of bankruptcy allows you with free yourself from the following types of debt:

  • Credit cards
  • Medical Bills
  • Payday Loans
  • Bank Overdraft charges
  • Consumer debt
  • Certain tax debt

Keep in mind that while creditors are entitled to sell certain valuable assets that you own, in most cases Chapter 7 bankruptcy  allows you to keep all your property.

Chapter 7 unfortunately does not get rid of:

  • Debts form most taxes
  • Student loans unless you are able to prove extreme hardship
  • Debts for personal injuries caused by driving while intoxicated
  • Debts for child support or alimony
  • Court fines, penalties or criminal restitution

In order to receive a bankruptcy discharge, you must first file a bankruptcy petition, then appear a the meeting of creditors hearing.  This occurs usually about a month or so after you file the petition.  At the meeting of creditors, you are asked basic questions about your assets and liabilities.  The meeting is very short, quick and painless. After the meeting you will typically receive your discharge shortly thereafter.  This is typically how the process works.

The reality is that Chapter 7 bankruptcy does not have to be a scary experience. Thousands of people file bankruptcy each year in California. They are able to make it through the process.  You can make it through, too.

Do you have questions about filing bankruptcy? We can answer your bankruptcy questions.  Give us a call today at 510-343-6299.