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 of your debts within a few months. As part of the process, you may also be required to surrender certain assets and property to creditors as payment.
At Khan Law, we help consumers take advantage of the benefits of this extremely powerful and flexible debt-elimination option. We serve clients in Dublin, Livermore, Fremont, Pleasanton, throughout the East Bay and San Joaquin County.
Bankruptcy can eliminate many debts that are causing you undue stress. The following debts can be discharged in a bankruptcy:
- Credit card balances
- Medical bills
- Most personal loans
- Deficiencies on repossessed vehicles
- Taxes that are 3 years or older and fit the requirements of the Bankruptcy Code
- Old Fines
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 debtor has no assets from which creditors can benefit. Another important factor is that certain assets, such as your home or vehicle, are exempt from liquidation up to certain values. What this means is that Chapter 7 bankruptcy typically allows you to keep most, if not all your 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 saving your home or vehicle.
As soon as your bankruptcy filing is completed, the judge issues an “automatic stay.” This halts all wage garnishments, harassing creditor calls and bill collection efforts against you. It also stops all lawsuits against you. Furthermore, 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.
The real question is can you qualify for Chapter 7 bankruptcy?
If you do not have many assets and meet the income qualifications, it’s highly likely you can qualify for Chapter 7 bankruptcy. However, if you do not meet those requirements, please contact Khan Law either way and we can help you determine whether Chapter 13 bankruptcy is right for you.
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. Contact us for a free consultation where we can discuss your options and go over your questions.