“Chapter 7” refers to a chapter within the United States federal bankruptcy law that allows qualifying debtors to eliminate most kinds of unsecured debt.
A Chapter 7 bankruptcy, also known as a “liquidation” bankruptcy, can eliminate most filers’ debts within a few months. As part of the process, filers may also be required to surrender certain assets and property to creditors as payment.
At Khan Law, we help consumers and small-business owners take advantage of the benefits of this extremely powerful and flexible debt-elimination option. We serve clients in Dublin, Livermore, Fremont, Pleasanton and throughout the Tri-Valley and East Bay area.
Among the many debts you can eliminate through a Chapter 7 business or personal bankruptcy are:
- Credit card balances
- Medical bills
- Most personal loans
- Judgments from car accidents
- Deficiencies on repossessed vehicles
There Is No Reason to Fear a Personal or Business Bankruptcy
Although the word “liquidation” may sound intimidating, the truth is very few people who file for Chapter 7 bankruptcy end up surrendering assets in this way.
Most often, the bankruptcy trustee determines that a no-asset case exists, meaning that the filer has no assets from which creditors can benefit. Another important factor is that certain assets, such as a filer’s home or vehicle, are exempt from liquidation up to certain values. What this means is that Chapter 7 bankruptcy typically allows filers to keep most, if not all, of their properties.
As long as your car and mortgage payments are current, and you own no significant equity in your property, our law office should have no problem arranging for you to reaffirm these debts while continuing to make timely payments. Put another way, you can file for Chapter 7 and still keep your house and automobile.
Although, after filing for Chapter 7, your credit rating may suffer temporarily, it can be rebuilt quickly and easily.
Other Advantages of Chapter 7 Bankruptcy
As soon as your bankruptcy filing is completed, the judge issues an “automatic stay” that our attorney can use to halt all wage garnishments, harassing creditor calls and bill collection efforts against you. It also stops all lawsuits against you. Further, your bank cannot be authorized to seize money from your accounts.
For the duration of your bankruptcy proceeding, you will receive a “timeout” on financial collections. By the time your bankruptcy is completed, the debts that caused these headaches should be discharged.
Will I Qualify For Chapter 7?
Not everyone qualifies for Chapter 7 bankruptcy, nor is every indebted person perfectly suited for it. High-wage earners and property owners may benefit from a Chapter 13 bankruptcy or another debt reduction strategy. Whatever your circumstances, we can advise you of a strategy tailored to your needs.
To meet with our conscientious and helpful Chapter 7 bankruptcy lawyer, contact Khan Law online or by calling 1-925-264-9083. We are eager to meet with you to discuss your circumstances, answer your questions and pursue your options for life-changing debt relief.
Wage garnishment can be stopped. Lawsuits over money can be stopped. Harassing phone calls can be stopped. Your credit can be repaired. A bankruptcy isn’t forever. Let Khan Law help restore your financial freedom.