Whether it is caused by a loss of income, a divorce, a medical issue or another problem, excessive debt can be incredibly troublesome for individuals and families. For many people dealing with harassment from bill collectors, wage garnishment, foreclosure threats and other symptoms of debt, bankruptcy is a powerful solution.
Sometimes referred to as liquidation, Chapter 7 bankruptcy can be used to discharge credit card debt, medical bills, personal loans, utility bills and many other forms of unsecured debt. When a consumer files Chapter 7, his or her creditors are ordered to stop all collection efforts. Some debts are not dischargeable in Chapter 7, including some tax debts, student loans and secured debts such as mortgages.
As an experienced California bankruptcy lawyer, I can help you explore your options for debt relief, which may include Chapter 7. The benefits of Chapter 7 can be powerful:
- In most cases, all consumer debts are discharged. There is a means test to determine whether an individual can file Chapter 7. This is based on the median income in the state of California.
- By getting rid of credit card debt and other financial burdens, filers of Chapter 7 are better able to afford essentials like housing and transportation. For some people, this means the ability to afford the mortgage or car payment.
While the benefits of Chapter 7 can be enormous, there are also disadvantages:
- A bankruptcy filing will stay on your credit record for 10 years, though it may not impact your credit score adversely for more than a few years. (Most filers of Chapter 7 find that once they can afford to pay all their bills every month, their credit scores improve significantly over time.)
- You won’t be able to file another Chapter 7 case for eight years.
- Any payments made to relatives in last 12 months can be recovered by bankruptcy court.
Bankruptcy is not for everyone. Consult an experienced attorney for reliable advice regarding your options for debt relief.
Contact me for a free consultation with an Anaheim Chapter 7 lawyer. At the Law Office of Christopher P. Walker, P.C., I can review your income, your specific debts and your assets, and help you determine whether Chapter 7 or Chapter 13 is appropriate for you, or if a non-bankruptcy alternative is in your best interest.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.