California Chapter 7 Bankruptcy

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Our San Diego chapter 7 bankruptcy attorneys can help you with all your debt related problems. You can learn more about California chapter 7 bankruptcy laws by reading the information below or simply give us a call and our lawyers will be more than happy to assist you.

Also known as "Fresh Start" or "Straight" bankruptcy, Chapter 7 bankruptcy allows a person to eliminate most or all of his or her debt while being allowed to keep certain property he or she may have.

In many cases, a person may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan. Chapter 7 eliminates:

• Credit Card debts
• Medical debts
• Personal loan debts
• Lawsuit debts
• Judgments - Unless fraud or criminal related
• Deficiency debts on repossessed autos and foreclosures
• Certain other exceptions may apply
• Personal Injury Debts - except driving while intoxicated and criminal injury.
• Certain other exceptions may apply.

Chapter 7 is the most commonly filed form of bankruptcy and can allow for a new start. More and more people find themselves struggling with debt they cannot control. Chapter 7 bankruptcy allows for their debt to be discharged and lets them gain control of their financial situation with a fresh start. Chapter 7 consumer bankruptcy is a legal process of liquidating these debts. This means that many kinds of debt may be discharged — or simply written off — without you having to repay them.

Filing for bankruptcy under Chapter 7 can be an effective way of avoiding wage garnishment or mortgage foreclosure and can protect you from creditor harassment. Most actions against you, including lawsuits, cease immediately. A hearing is held to verify the contents of your bankruptcy petition, which lists your assets and liabilities and unless a formal objection is raised, a discharge of your debts is issued approximately 90 after your court hearing.

The main benefit of filing for bankruptcy under all chapters is the automatic stay. The automatic stay is a court order that automatically applies once a bankruptcy case is filed (with rare exceptions that apply to some repetitive case filings). The automatic stay stops most lawsuits, repossessions, foreclosures, garnishments, utility shut-offs, and debt collection harassment. It offers debtors relief and enables debtors and a case trustee to review the facts and develop an appropriate solution to the debt problems.

Chapter 7: Liquidation court filing fee (not including attorney fees or costs = $299)

• Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a "means test" designed to determine whether the case should be permitted to proceed under chapter 7. If your income is greater than the median income for your state of residence and family size, in some cases, creditors have the right to file a motion requesting the court dismiss your case as an abuse under §707(b) of the United States Bankruptcy Code. It is up to the court to decide whether the case should be dismissed.
• Under chapter 7, you may claim certain property exempt under applicable law. Some states force debtors in the state to only claim property exempt pursuant to state law, while other states allow debtors to choose to claim property exempt under either state or federal law. A trustee can take possession and sell any non-exempt property and use the sale proceeds to pay your creditors.
• The purpose of filing a chapter 7 case is to obtain a discharge of the debts existing as of the date you file a case. However, not all debts are dischargeable. If you have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny you a discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated.
• Even if you receive a general discharge, some particular debts are not discharged under the law. Therefore, you may be responsible to pay for most taxes and student loans; debts incurred to pay non-dischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your paperwork; and debts for death or personal injury caused by operation of a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, or theft, or from a wilful or malicious injury, the bankruptcy court may determine that the debt is not discharged.

If you need help with filing a Chapter 7 Bankruptcy in California, please call our 24 hour hotline at 1-800-551-7922. Our professional San Diego chapter 7 bankruptcy attorneys are ready to help you get back on your feet and take back control of your life.