Chapter 7 Bankruptcy

Chapter 7 bankruptcy can eliminate credit card debt, medical bills, payday loans and many forms of unsecured debt. To learn more about chapter 7 bankruptcy call attorney Adam Garcia at (707) 200-6688 for a free phone consultation.

Chapter 7 bankruptcy is the most popular form of bankruptcy due to its short duration and speedy elimination of unsecured debt.  However, not everyone qualifies for chapter 7 bankruptcy.  To file chapter 7 bankruptcy your income must fall below a certain figure.  Also, you cannot have filed chapter 7 bankruptcy in the past 8 years.

Even if you qualify for chapter 7 bankruptcy you need to make sure that your property can be protected.  California law allows certain property up to certain values to be protected from sale in chapter 7 bankruptcy.  In turn, any property that cannot be protected will be sold and the proceeds distributed to creditors.  Accordingly, it is important to consult with a bankruptcy attorney before you file chapter 7 bankruptcy.

Bankruptcy attorney Adam Garcia represents clients in chapter 7 bankruptcy for a low flat fee. To schedule your free consultation with Adam Garcia call (707) 200-6688.

Common reasons for filing chapter 7 bankruptcy

• Credit card debt
• Divorce (not alimony or child-support debt)
• Medical debt
• Business debt
• Payday advances, personal loans, and cash advances
• Tax debt
• Judgments
• Wage garnishment
• Vehicle debt

If you can’t pay these debts, chapter 7 bankruptcy may be right for you.

Stop Creditor Harassment

As soon as your petition is electronically filed with the bankruptcy court creditors must stop contacting you. Under federal law, the filing of a bankruptcy petition creates an “automatic stay” against collection efforts. In other words, once your bankruptcy petition is filed with the court creditors must stop calling. Your creditors cannot repossess your car, foreclose on your home, or garnish your wages. You will enjoy immediate relief from creditor harassment.

Keep Your Property

Many people believe they will lose everything they own in chapter 7 bankruptcy. After all, chapter 7 is called liquidation bankruptcy. The idea that a debtor will lose all of their property in chapter 7 bankruptcy is a myth. In chapter 7 bankruptcy your non-exempt property can be sold by the bankruptcy trustee, and the proceeds can be distributed to your creditors. However, you can exempt certain categories of property in varying amounts and thereby remove these items from liquidation. 

California exemption statutes are designed to protect the equity you have in certain property because you will need certain things after bankruptcy to get a fresh start. For instance, you will need a modest vehicle, household furnishings, clothes, personal property that you use in your work, retirement funds, etc. 

Other exempt items include moderately priced jewelry and art. Once these items are exempted they cannot be sold and you will be able to keep them throughout and after your bankruptcy. In fact, most chapter 7 cases are “no-asset” cases meaning that after all exemptions have been applied no non-exempt assets exist for the Trustee to sell.

Free Phone Consultation

Bankruptcy attorney Adam Garcia offers a free phone consultation, so why not call? Stop guessing and get answers from a chapter 7 bankruptcy attorney by calling (707) 200-6688.