Chapter 7 Bankruptcy;
Stockton, Pleasanton, Bay Area, Elk Grove, and the Sacramento Region

If you have a financed car, you can continue to make payments and retain your vehicle. If you have paid off cars, you will need to speak to an experienced bankruptcy Attorney, so they can provide you with the correct exemptions for your state. For example, in California, you can protect $7500 of value in your car, but you will get more value that you can protect (up to an extra 30,000) if you are a renter. If you are a homeowner, the amount of protections offered to you for your car is much less. A Chapter 7 bankruptcy lawyer can give you strategies regarding your vehicles.

You can protect the equity in your home when you file for Bankruptcy. Every county in California has their own specific amount that you can protect. The range is anywhere from $300,000 to $722,000. You can speak to a bankruptcy attorney in your State to see how much equity in your home you can protect.

What is Chapter 7 Bankruptcy?

Can you keep your Home and Car in Chapter 7 Bankruptcy? 

Benefits of Filing for Chapter 7 Bankruptcy 

It does stay on your record for a period of 10 years. But, each year that passes, your bankruptcy becomes less and less of an issue when applying for loans. You will receive auto loan and credit card offers shortly after your bankruptcy case is closed; sometimes you receive them right after you file for bankruptcy. You can purchase a home within 2-4 years of your discharge date. The most important benefit of filing for bankruptcy is improving your life. Without the burden of debt on your shoulders, you will sleep better, have improved relationships and even perform better at work. 

With a Chapter 7 bankruptcy, you can wipe out your:

- Credit card bills
- Payday & cash advance loans
- Personal loans
- Medical debt
- Old tax debt
- Vehicle repossession debt
- Wage garnishments

With this discharge, it allows you to truly start fresh and make a budget going forward of all your essential bills.

Rebuilding of Credit Score to 720 or higher

Chapter 7 bankruptcy takes about 4 months to be completed, from the moment you retain my office to the final discharge of debt. After you obtain that discharge of your unsecured debts, you can immediately begin rehabilitating your credit score. You can rebuild your credit score by applying for and using credit cards responsibly, continuing to pay on your installment loans and becoming on authorized user on another individual’s credit card with a high credit score.

Qualify to Buy a Car or Home

Many people think you can never buy a new car or home after filing for Chapter 7 bankruptcy. This is simply not true. You are eligible to finance a new vehicle as soon as your debts are wiped out and your bankruptcy case is closed. You can purchase a home 2-3 years after filing for bankruptcy which will give you enough time to save for a down payment.

A Chapter 7 bankruptcy is federal debt relief that allows you to eliminate credit card bills, personal loans, unsecured lines of credit, medical bills, old tax debts, vehicle repossessions, EDD overpayments, and medical bills. Chapter 7 bankruptcy allows you to protect equity in your home, your vehicles, household furnishings, electronics, retirement accounts and many other assets. It is important to speak to an experienced Bankruptcy Attorney in your State to determine what bankruptcy exemptions are available to you. 

Bankruptcy will also stop creditor harassment and creditor calls. It will stop wage garnishments, vehicle repossessions and lawsuits from becoming judgements. It also wipes out money judgements. 

Which is better? Debt consolidation seems like a good idea. They do not require any fees up front and they put individuals on a monthly payment plan. At first blush, it seems like a good idea, but after hearing Client horror stories throughout the years, bankruptcy is the superior option. If you participate in a debt relief program with a company, such as Freedom Debt Relief, National Debt Relief, Accredited Debt Relief, you need to be aware of a few things. First, they will not pay all your creditors at the same time. They keep your money in a reserve account and do not pay your creditors immediately. They attempt to settle out each debt and that could take several months or years. Second, while you are paying the debt relief company, you can be sued by any of your creditors, since the debt relief company is not paying your creditors. Finally, your credit score is continuing to plummet since your creditors will be reporting delinquent payment status to the credit bureaus.

Bankruptcy provides you with true debt relief. Once you file for Bankruptcy with the federal court, you will receive immediate protection from creditor harassment. They will stop contacting you and any credit lawsuit against you gets dismissed.

Chapter 7 bankruptcy is not a monthly payment plan; it is a complete discharge of unsecured debts. It is a 3 month process from start to finish.

Finally, after your debts are discharged and your case is closed, your credit score will begin to rehabilitate. Your score will begin to increase and you will not have the financial strain of all these debts hanging over your heads.

Bankruptcy provides you with true debt relief. Once you file for Bankruptcy with the federal court, you will receive immediate protection from creditor harassment. They will stop contacting you and any credit lawsuit against you gets dismissed.

Chapter 7 bankruptcy is not a monthly payment plan; it is a complete discharge of unsecured debts. It is a 3 month process from start to finish. Finally, after your debts are discharged and your case is closed, your credit score will begin to rehabilitate. Your score will begin to increase and you will not have the financial strain of all these debts hanging over your heads.

Debt Consolidation vs Bankruptcy?