Bankruptcy Help for Business and Individuals

Chapter 7 Bankruptcy

by | Nov 21, 2019

Chapter 7 bankruptcy is a legal process by which most unsecured debts can be discharged, or eliminated.
This bankruptcy procedure will enable you to get rid of unsecured debt including credit card bills, medical bills, and finance company loans. However, certain types of debt cannot be discharged in a Chapter 7 bankruptcy, including child support payments, student loans, recent taxes, criminal fines, and parking tickets.

Chapter 7 allows you to typically keep all of your property that is pledged as security for a loan. As long as your car and mortgage payments are current, and there is no significant equity in your property, you should be able to reaffirm the debt. However, if you do not want to keep the property and still be responsible for the debt, you can surrender the property to the lender and your debt will be discharged. Typically, individuals filing a Chapter 7 bankruptcy keep their home, their car, and their personal belongings.

During the Chapter 7 bankruptcy process, you will submit all of your financial information to the court and your debts and assets will be reviewed by the court appointed trustee and your creditors. All your creditors will be notified of your bankruptcy and instructed to cease all collection action unless the court later approves some action.

Chapter 7 bankruptcies are also known as liquidations because any non-exempt assets that the debtor has may be liquidated (sold) by the trustee for the benefit of the creditors. Most Chapter 7 bankruptcy debtors do not have any non-exempt assets, so they are able to keep all of their personal and real property.

Chapter 7 bankruptcies benefit individuals and families because they eliminate the stress of paying their unsecured debts, while allowing individuals to keep most of their property and assets. Filing a Chapter 7 bankruptcy petition stops foreclosure proceedings, wage garnishment, creditor harassment, and other collection actions that stress out individuals facing overwhelming debt.

Contact an experienced Chapter 7 bankruptcy attorney to determine which options are right for you. Call (949) 450-8500 today for your FREE consultation.

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