Thinking of Bankruptcy? Get the Legal Advice You Need
At the Naziri Law Group, our lawyers help people facing chronic or acute debt crises through all stages of Chapter 7 bankruptcy, from the initial decision to file for bankruptcy to the final discharge of debts. Contact us at any of our four California locations for a free consultation about Chapter 7 and what it can do for you.
Naziri Law Group - Woodland Hills - Irvine - Oakland - San Jose
Chapter 7 bankruptcy is generally the simplest and quickest form of debt relief. It's available to individuals, married couples, corporations and partnerships. From start to finish, a Chapter 7 case takes four to six months. You present detailed information about your assets, debts, and exemption claims to the bankruptcy court, and a court-appointed trustee interviews you about your financial situation. Creditors have the chance to object to the discharge of the debts you owe.
In theory, the trustee gathers and sells your non-exempt assets and uses the proceeds to pay off your creditors. In practice, any Chapter 7 debtor who owns non-exempt assets worth hanging onto will probably file for Chapter 13 instead. In our experience, it's very rare for a Chapter 7 debtor to part with any non-exempt property to meet the claims of creditors.
There are a few catches to Chapter 7 bankruptcy relief, several immediate and long-term benefits, and our attorneys can help you understand and work through them all.
Here are the most important catches:
- You can only get a discharge of debts in Chapter 7 once in every eight years
- If your net income is too high, you won't be eligible for Chapter 7 relief
- You need to complete a short consumer credit course before you file for bankruptcy and another course before you get your discharge
- Not all debts can be discharged — recent taxes, child support and student loans are the most common debts that you'll still need to pay
- Creditors holding collateral — car loans and mortgages, mainly — are entitled to be paid up to the value of the property that secures their claims
Notwithstanding these considerations, many people will benefit from the discharge of medical bills, credit card debts and other unsecured obligations. Just about everyone benefits as well from the automatic stay of bankruptcy. That's what stops creditors from doing anything to collect a debt without court permission after you file your case.
For more information about consumer or small business bankruptcy in Los Angeles, Orange County or the Bay Area, contact the Naziri Law Group at any of our four locations.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
