Chapter 7 is the most common bankruptcy in California and the United States. Understanding your various options, filling out the extensive and complex paperwork, and understanding what options are the ones that are most beneficial to your specific financial situation can be a confusing and often unrealistic process. Bellow is some information regarding a Chapter 7 Bankruptcy.
What is Chapter 7 Bankruptcy?
Chapter 7, the most common type of bankruptcy, often referred to as a “liquidation” bankruptcy. It is called chapter 7 because it appear on chapter 7 on the United States Bankruptcy Code.
Liquidation means that upon filing, a court appointed trustee liquidated the assets of your estate, then sell them with proceeds going to creditors. But the benefit of chapter 7 bankruptcy is that it cancels most types of debt. There are many assets such as a car or a home that may in many cases be saved from a forced liquidation.
Bankruptcy laws are meant to give an individual a fresh start. The court will not take such assets, (i.e. car or home) that will lead to you being unable to start a new debt free financial life. A knowledgeable, trusted, and tenacious bankruptcy attorney will likely maximize your ability to keep many of the assets you own.
What will happen to my property (assets)?
Upon filing just about everything you own becomes subject to the bankruptcy court authority. Property that is not subject to court authority include, pensions, tuition and school education accounts. The property that is under the authority of the court may also include property you improperly transferred to another in anticipation of a bankruptcy.
It is important that you protect you assets. That is why you are advised to seek a legal representative from a trusted source which will counsel you as to the proper course of action. When filing our bankruptcy lawyers will make sure protect your assets using every legal avenue possible.
Our goal is for you to keep you personal belonging and assets to that you can begin the process of rebuilding your financial life.
Discharging of debts, secured and unsecured
There are two different types of debt in a chapter 7 bankruptcy, secured debt and unsecured debt. Secured debts are not discharged in lieu of a Chapter 7 bankruptcy. A secured debt is one that is attached to a property via a mortgage. In other words the mortgage on the property secured the payment of the balance on a loan in a timely basis.
Secured debts also include
- Certain Taxes
- Student Loans
- Child Support
- Debts incurred via fraud
Your free financial assessment by our bankruptcy lawyers will assess which debts cannot be discharged and provide a cost/benefit analysis of whether a Chapter 7 filing is in your best financial interests.
Why Choose Bankruptcy law firm Downtown LA Law Group?
At Downtown La Law our bankruptcy lawyers will provide you with a low cost, personal, and confidential bankruptcy legal representation. Here are some of the reasons why…
- An entirely Free and Personalized consultation including an analysis your financial circumstances by our team of expert financial consultants
- Individualized Client Service specifically tailored to your financial and personal needs
- Comprehensive assessment of the different legal avenues determining whether chapter 7 bankruptcy is the best option for your needs.
- Low Cost, Knowledgeable and Effective representation of your Chapter 7 bankruptcy process.