WHAT DEBTS DOES CHAPTER 7 BANKRUPTCY NOT DISCHARGE?
As we have discussed, Chapter 7 bankruptcy will only discharge most of your unsecured debts. However, there are some exceptions to this rule. For instance, you will not be able to discharge most child support debts, student loan debts, or spousal support debts. Further, while most personal injury debts can be discharged, there is a notable exception for any injuries suffered due to the debtor driving drunk. In that case, the medical debts will not be eligible for discharge during Chapter 7.
DOES FILING FOR BANKRUPTCY HELP PROTECT AGAINST FORECLOSURE AND REPOSSESSION?
Yes, Chapter 7 bankruptcy can help protect you against foreclosure and repossession. As soon as you opt to file for bankruptcy, you will be protected by something known as the “automatic stay.” Under the automatic stay, creditors will be forced to stop any collection actions. Potential collections actions include not just foreclosure and repossession but also wage garnishment, bank levies, and collection lawsuits.
So, say you’ve successfully filed for bankruptcy. It will now be necessary for all of your creditors to work through the bankruptcy court. Thanks to the automatic stay that the debtor is provided with, they are given time to reorganize finances; this will also help to ensure that all creditors are treated fairly throughout the bankruptcy process.
WHAT CAN A CHAPTER 7 BANKRUPTCY ATTORNEY DO FOR ME?
When it comes to filing for Chapter 7 bankruptcy, it is essential to have a reliable attorney at your side.
The process of filing for bankruptcy isn’t a simple one. At the same time, each and every detail is essential, and even one small error can result in the dismissal of your case. Then, once again, you’ll be at the creditors’ mercy.
This is why hiring a Chapter 7 bankruptcy lawyer is so important. A bankruptcy lawyer has a thorough understanding of the bankruptcy processand how to succeed from start to finish. With a lawyer, you’ll find that the entire process is far less rocky, with fewer hiccups (or worse) due to errors. Whenever you are confused during the process or are unsure how to proceed, you’ll always have a reliable resource to turn to.
In short, a bankruptcy attorney can help ensure the success of your filing, as well as make the overall process far less stressful and prone to error. You’ll be able to effectively protect everything that’s important to you while your attorney ensures that you’re getting the most out of your discharge. This way, it’ll be far easier for a debtor to move forward with their financial slate truly wiped clean.
In addition, it is not unheard of for creditors to try circumventing the discharge. Without a lawyer, this can be a difficult situation to handle. A Chapter 7 bankruptcy attorney will be able to enforce the discharge if there are any attempts to disobey it.
HOW IS CHAPTER 7 DIFFERENT FROM CHAPTER 13 BANKRUPTCY?
There are some critical differences between Chapter 7 and Chapter 13 bankruptcy. As we mentioned earlier, if someone does not qualify for Chapter 7 bankruptcy, then their next option will be to file for Chapter 13 instead.
Chapter 7 bankruptcy is the most common type of bankruptcy for individual filers. Since this form of bankruptcy is based around liquidation, the court will sell all of a person’s eligible assets for cash, then use this money to pay all creditors. Oftentimes, it is possible for Chapter 7 bankruptcy to entirely wipe out an individual’s debts. However, not everyone can qualify for Chapter 7. You will have to pass the Means Test, which is used to prove that a person doesn’t earn enough money to start on a Chapter 13 repayment plan. If a Chapter 13 repayment plan is proven to be financially feasible for the debtor, they will no longer qualify for Chapter 7.
Chapter 13 bankruptcy, however, is designed for individuals with an average (rather than a below-average) income. The process of Chapter 13 is slower than with Chapter 7 bankruptcy; from start to finish, the process of Chapter 13 bankruptcy takes anywhere from three to five years to complete. However, the individual will always be able to keep their property. Chapter 13 features limits of its own, where not all forms of debt can qualify, as well as not all amounts of debt. If you don’t qualify for Chapter 7 bankruptcy, then speak to an attorney to determine whether you are eligible for Chapter 13.
HOW DO I KNOW IF CHAPTER 7 BANKRUPTCY IS THE RIGHT CHOICE FOR ME?
Deciding whether to file for bankruptcy, Chapter 7 or otherwise, is anything but a simple decision. Further, this isn’t a decision that you should ever be made on a whim. Therefore, before filing, you must determine whether Chapter 7 bankruptcy is truly the best option for you in your unique situation. Speaking to a bankruptcy attorney is one potential way to determine this if you’re lost or unsure.
First, consider everything that we’ve discussed up until this point. If this still sounds like the best route for you, and you believe that you qualify, then contact an experienced California Chapter 7 bankruptcy attorney. The Law Office of Christopher P. Walker is always ready to help you regain financial independence and begin rebuilding your credit rating from the ground up. We’ll work one-on-one with you to determine the best route for your unique financial situation.
HIRE AN EXPERIENCED CHAPTER 7 BANKRUPTCY LAWYER IN YORBA LINDA, CA
Are you located in the Yorba Linda, California area, and considering filing for Chapter 7 bankruptcy? We understand that this is anything but an easy decision. Being in a position where filing for bankruptcy is necessary can be overwhelming, and it isn’t a process that you should proceed with on your own. Unfortunately, even if you make a small error during the process of filing, it will be possible for your entire case to be dismissed. However, this outcome can be avoided if you hire an experienced, reliable Chapter 7 bankruptcy attorney.
This is precisely why you should turn to the services of the Law Office of Christopher P. Walker. Our compassionate team of attorneys understand that no one comes to a decision about bankruptcy lightly. Over 20 years into his law career, Christopher P. Walker has developed a deep understanding of the legal process, especially when it comes to bankruptcy. Interested in scheduling a consultation? You can contact our office through our online form or give us a call.