California Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is the most common type of Bankruptcy filed. It is commonly referred to as a "clean-slate" or "Fresh-Start' bankruptcy. In essence, a Chapter 7 Bankruptcy will wipe out all of your unsecured debt (ex: Credit Cards, Medical Bills, Pay Day Loans, Personal Loans, balances owed on repossession or foreclosure, etc.).

By nature a Chapter 7 Bankruptcy is a liquidation; meaning the bankruptcy trustee liquidates (sells) assets to pay creditors, and then discharges (erases) the remaining debts owed. However, under California Code of Civil Procedure, an individual who files a Chapter 7 Bankruptcy is allowed to exempt (protect from being sold) a large amount of assets, therefore in most circumstances an individual who files for a Chapter 7 Bankruptcy is able to keep all of their assets (personal possessions – cars, home, tv's, etc.).

In 2005 the credit card companies lobbied congress and convinced them to pass BAPCA (Commonly referred to as the 2005 Bankruptcy Reform Act). This law made it much more difficult for an individual to qualify for a Chapter 7 Bankruptcy. Under the new Bankruptcy Laws, an individual must pass what is called the "means test" in order to qualify for a Chapter 7 Bankruptcy. If an individual makes too much money according to the means test, then the Law states they cannot file for a Chapter 7 Bankruptcy and their only option is to file for a Chapter 13 Bankruptcy (i.e. repayment plan, whereby the individual filing bankruptcy must pay back a portion if not all of their debts to the bankruptcy trustee).

We here at the Bankruptcy Law Center have years and years of experience helping our clients qualify for a Chapter 7. Our team of lawyers have over 2 decades of experience in the field of bankruptcy law. Our team of lawyers have filed hundreds and hundreds of bankruptcy petitions. The Bankruptcy Law Center possess the knowledge and skills needed to help you qualify for a Chapter 7 Bankruptcy, protect all of your assets, and give you that fresh start you so desperately need.

The Chapter 7 Bankruptcy process is a very complicated process, especially with the new BAPCA law change in 2005. Many things can go wrong when filing for bankruptcy, and unbeknownst to many people who file for bankruptcy, they cannot just dismiss their case if something goes wrong. Many people have hired inexperienced lawyers to represent them in their Chapter 7 and have lost their homes, cars, money, etc. If an attorney incorrectly fails to properly exempt your assets, the trustee can merely take these assets without allowing you to back out of the bankruptcy and dismiss the case.

Filing Bankruptcy is an extremely complicated and stressful process. If done correctly it can be an extremely valuable and intelligent financial tool, however if done incorrectly can leave you in ruins. This can be one of the most important financial decisions you make in your life, therefore you need a lawyer who only practices in the area of bankruptcy law. You need a team of lawyers who possess the experience, intelligence, and passion to zealously and proactively represent you in your bankruptcy. We here at the Bankruptcy Law Center possess the experience and talent you need.

If you are suffering from high interest rates on your credit cards, barely able to make the minimum payments on your debts, lost a car to a repossession, lost a home to foreclosure, or stuck in the never ending cycle of pay-day loans, then you owe it to yourself to call the Bankruptcy Law Center today to set up a FREE consultation at 1-(800)-551-7922. Don't live the rest of your life buried in debt. Call today to set up a FREE consultation with a lawyer to see if you qualify at (800) 551-7922.