Chapter 7

California Chapter 7 Bankruptcy: Wiping Out Debts

Chapter 7 is the most popular form of bankruptcy filed in California ... probably because it’s so fast and painless when done right.

People who are over their heads in debt and can’t pay their bills file for California Chapter 7. It’s the legal and ethical way to end debt problems and get a fresh start in life. And that’s what Chapter 7 bankruptcy is all about.

In a Chapter 7 case, the debtor must turn over all their nonexempt property -- if any exists -- to a court-appointed trustee, who then sells the property and divides the cash proceeds among the creditors on a pro rata basis. Normally, there are sufficient exemptions to save your home, car and all of your belongings.

When you complete the Chapter 7 process the court issues you a “Discharge”, which means your debts are wiped out and you’re no longer legally obligated to pay these debts.

A Chapter 7 bankruptcy can wipe out most unsecured debts such as:

  • Credit cards
  • Personal loans
  • Checking account overdrafts
  • Medical and dental bills
  • Judgments
  • Older tax obligations
  • Deficiencies on repossessed cars and foreclosed homes
  • Unemployment over-payments
  • Social Security over-payments 

Realize that not every debt can be wiped out. Debts that can’t generally be wiped out include:

  • Recent cash advances on credit cards
  • Recent taxes
  • Court ordered child support and spousal support payments
  • Court ordered fines and criminal restitution
  • Student loans
  • Debts for personal injuries caused while driving intoxicated 
  • Anything where fraud or deception is involved

Benefits you’ll receive from filing California Chapter 7 Bankruptcy include:

  • Get rid of your debt fast. From start to finish a Chapter 7 usually lasts about 5 months. Then you're debt free and enjoying life again. Fast and simple!
  • Keep all your property. Nothing to fear. The average person keeps ALL their property in a Chapter 7 bankruptcy. Don't worry, I'll carefully check over your property before you file and make sure that everything is safe.
  • Make bill collectors leave you alone. As soon as you file your Chapter 7 bankruptcy your creditors are restrained from calling or writing you. If they want to talk to someone about your bill they have to call me. And frankly, they seldom do that because I know their tactics.
  • Stop paying creditors and start feeding your own family. Face it -- your own family has to take priority over your creditor's family.
  • Stop auto repossession. As long as you file your bankruptcy prior to repo, then Chapter 7 protects you.
  • Stop wage garnishments. As soon as your creditor gets a judgment against you, you can be sure he's going to get a wage garnishment. You can't let that happen. Call me immediately.
  • Stop lawsuits. Once you file bankruptcy your creditors are forbidden by powerful federal law from commencing or continuing any actin against you to collect a debt.
  • The ability to pay your remaining bills on time easily. Because you've gotten rid of your credit card debt and the medical bills, etc. -- it will free up money to pay for your mortgage and auto payments, etc.
  • The ability to save money. You can start that college savings fund for the kids or start saving for a home.
  • Keep your home and car. Don't be fooled. As long as you keep 5paying the monthly payments, you should be able to keep your secured debts like autos and home.

If you want to read a more detailed explanation of California Chapter 7 Bankruptcy and what it can do for you, click here.

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