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California Bankruptcy Frequently Asked Questions

What is Bankruptcy?

Bankruptcy is a legal procedure in which an individual, married couple, or business says that they are no longer able to pay their debts. The bankruptcy court takes a look at their financials and makes a determination based on the U.S. Bankruptcy Code on whether or not they can receive a discharge, consolidate their payments, or otherwise ask for relief from the payment of debts.

Why Should You File for Bankruptcy?

Let’s face it. Sometimes you reach a point where you recognize that you will never be able to pay your way out of debt. Meanwhile, your creditors are filing lawsuits against you, you are getting harassing phone calls from debt collectors, and you could face wage garnishments, bank levies, or the placement of liens on your property.

If your creditors have already begun the process of filing a lawsuit against you, they can garnish your wages in the likely event that they win the lawsuit. To prevent this, car repossessions, and foreclosures, you can file for bankruptcy. Once your case has been filed, all creditor actions against you must immediately stop while the court reviews your case.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as “straight bankruptcy” or “liquidation bankruptcy” involves the discharge of all unsecured debts against your valuable assets.

You are required to list all current debts on your bankruptcy forms and determine whether or not you want to discharge them. In the case of unsecured debt, like medical debt or credit card debt, those debts will be discharged. In the case of secured debt like mortgage or car payments, your obligation to pay those debts is removed and any penalties for nonpayment are discharged.

In a Chapter 7, the bankruptcy trustee will look for any valuable property or assets you have and use those to repay your creditors. But most individuals who qualify under Chapter 7 do not have significant assets to liquidate and thus do not have to surrender any valuable property. Those who file under Chapter 7 are allowed to protect some of their valuable assets up to a certain amount.

How do I Qualify Under Chapter 7?

Chapter 7 bankruptcy has an income threshold. The income threshold is based on the median family income in your state of residence. This figure changes from year to year. Suffice it to say, if you make less than the state median, you can file for Chapter 7 bankruptcy.

Those who make more than the state median are required to pass a means test. The means test determines whether or not an individual with more income than the state median can file under Chapter 7. If the court determines that they have enough disposable income, they will be prevented from filing a Chapter 7 bankruptcy.

Who is Chapter 7 Bankruptcy for?

The most common types of people who file under Chapter 7 are those who owe a lot of money in medical expenses or credit card debt. They are probably getting threats from creditors and will likely be facing lawsuits soon or are facing lawsuits already. They do not have the means to pay off the debts that they are being expected to pay and need a financial fresh start to stabilize their financial situation.

What Kinds of Debts can Chapter 7 Discharge?

Debts that can be discharged in Chapter 7 include unsecured debts like medical debt and credit card debt. Chapter 7 also discharges your obligation to pay on secured debts like your mortgage or your car. However, if you choose to discharge a secured debt in Chapter 7, you may forfeit your right to the property depending on a variety of factors, such s the type of asset.

Alternatively, those who file under Chapter 7 can reaffirm their intention to make payments on secured debts. But if their Chapter 7 is granted, they would not be able to file another Chapter 7 for eight years. That means that they would be on the hook to pay those debts and bite the bullet on penalties that arise from their non-payment if they default on their debt.

What Property can I Keep in a Chapter 7 Bankruptcy?

California Law and federal law provide for exemptions that allow you to protect and keep your property from liquidation in a Chapter 7 bankruptcy. While every case is different, once qualified for a Chapter 7 Bankruptcy by one of our attorneys, our clients are generally able to keep all of their property.

Working With a Chapter 7 Bankruptcy Attorney

Many folks do not know where to even begin when it comes to filing for bankruptcy. That is why bankruptcy attorneys exist. We help those who are saddled with crippling debt find the light at the end of the tunnel. Our job is to protect you from aggressive creditors, prevent the garnishment of your wages, and set you back on the path to financial freedom.

While there are certain consequences to your credit involving Chapter 7, we also help bankruptcy filers rebuild their credit after they have received their discharge. Chances are, your credit was not in a good place prior to filing for bankruptcy.

We then assess your debt liabilities, your financial situation, and help you make decisions on what property you want to exempt from liquidation.

If you are in a difficult situation, call the California bankruptcy attorneys at Harrison l Kristopher, LLP today to learn more about how we can help

Free Bankruptcy Consultation






California Bankruptcy Frequently Asked Questions

What is Bankruptcy?

Bankruptcy is a legal procedure in which an individual, married couple, or business says that they are no longer able to pay their debts. The bankruptcy court takes a look at their financials and makes a determination based on the U.S. Bankruptcy Code on whether or not they can receive a discharge, consolidate their payments, or otherwise ask for relief from the payment of debts.

Why Should You File for Bankruptcy?

Let’s face it. Sometimes you reach a point where you recognize that you will never be able to pay your way out of debt. Meanwhile, your creditors are filing lawsuits against you, you are getting harassing phone calls from debt collectors, and you could face wage garnishments, bank levies, or the placement of liens on your property.

If your creditors have already begun the process of filing a lawsuit against you, they can garnish your wages in the likely event that they win the lawsuit. To prevent this, car repossessions, and foreclosures, you can file for bankruptcy. Once your case has been filed, all creditor actions against you must immediately stop while the court reviews your case.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as “straight bankruptcy” or “liquidation bankruptcy” involves the discharge of all unsecured debts against your valuable assets.

You are required to list all current debts on your bankruptcy forms and determine whether or not you want to discharge them. In the case of unsecured debt, like medical debt or credit card debt, those debts will be discharged. In the case of secured debt like mortgage or car payments, your obligation to pay those debts is removed and any penalties for nonpayment are discharged.

In a Chapter 7, the bankruptcy trustee will look for any valuable property or assets you have and use those to repay your creditors. But most individuals who qualify under Chapter 7 do not have significant assets to liquidate and thus do not have to surrender any valuable property. Those who file under Chapter 7 are allowed to protect some of their valuable assets up to a certain amount.

How do I Qualify Under Chapter 7?

Chapter 7 bankruptcy has an income threshold. The income threshold is based on the median family income in your state of residence. This figure changes from year to year. Suffice it to say, if you make less than the state median, you can file for Chapter 7 bankruptcy.

Those who make more than the state median are required to pass a means test. The means test determines whether or not an individual with more income than the state median can file under Chapter 7. If the court determines that they have enough disposable income, they will be prevented from filing a Chapter 7 bankruptcy.

Who is Chapter 7 Bankruptcy for?

The most common types of people who file under Chapter 7 are those who owe a lot of money in medical expenses or credit card debt. They are probably getting threats from creditors and will likely be facing lawsuits soon or are facing lawsuits already. They do not have the means to pay off the debts that they are being expected to pay and need a financial fresh start to stabilize their financial situation.

What Kinds of Debts can Chapter 7 Discharge?

Debts that can be discharged in Chapter 7 include unsecured debts like medical debt and credit card debt. Chapter 7 also discharges your obligation to pay on secured debts like your mortgage or your car. However, if you choose to discharge a secured debt in Chapter 7, you may forfeit your right to the property depending on a variety of factors, such s the type of asset.

Alternatively, those who file under Chapter 7 can reaffirm their intention to make payments on secured debts. But if their Chapter 7 is granted, they would not be able to file another Chapter 7 for eight years. That means that they would be on the hook to pay those debts and bite the bullet on penalties that arise from their non-payment if they default on their debt.

What Property can I Keep in a Chapter 7 Bankruptcy?

California Law and federal law provide for exemptions that allow you to protect and keep your property from liquidation in a Chapter 7 bankruptcy. While every case is different, once qualified for a Chapter 7 Bankruptcy by one of our attorneys, our clients are generally able to keep all of their property.

Working With a Chapter 7 Bankruptcy Attorney

Many folks do not know where to even begin when it comes to filing for bankruptcy. That is why bankruptcy attorneys exist. We help those who are saddled with crippling debt find the light at the end of the tunnel. Our job is to protect you from aggressive creditors, prevent the garnishment of your wages, and set you back on the path to financial freedom.

While there are certain consequences to your credit involving Chapter 7, we also help bankruptcy filers rebuild their credit after they have received their discharge. Chances are, your credit was not in a good place prior to filing for bankruptcy.

We then assess your debt liabilities, your financial situation, and help you make decisions on what property you want to exempt from liquidation.

If you are in a difficult situation, call the California bankruptcy attorneys at Harrison l Kristopher, LLP today to learn more about how we can help

NORTHERN CALIFORNIA

TEL: (866) 988-4924

FAX: (866) 988-4925

1800 Sutter Street, Ste 320
Concord, CA 94520

SOUTHERN CALIFORNIA

TEL: (866) 529-6155

FAX: (866) 565-6206

301 E. Colorado Blvd #711
Pasadena, CA 91101