Chapter 7 Bankruptcy

If you are in danger of losing your home, your car, or other property, of having your wages garnished, and/or are tired of creditors' harassment, contact us today. We can help you decide if bankruptcy is for you.

Please call now: (310) 824-3611.

Bankruptcy under Chapter 7 of the Bankruptcy Code is often referred to as "straight bankruptcy" or a "liquidation bankruptcy". The main purpose of Chapter 7 Bankruptcy is to discharge certain debts, so that you can have a "fresh start" but still allowing you to keep much of your property. These bankruptcies are filed when one cannot hope to pay off their obligations. Once your bankruptcy petition has been filed, an "automatic stay" is triggered which will stop any and all foreclosure sales, lawsuits, wage garnishments, bank levies and evictions. The moment you file your bankruptcy, the stay will give you immediate relief from creditors. When the bankruptcy is complete, most of your debts will be discharged. You will no longer owe for them.

If you are in deep financial trouble, there are laws to protect you. You have been given the opportunity to file for bankruptcy and make a new start. California law generally exempts a debtor's home, furniture, furnishings, motor vehicles, and additional personal property up as much as $23,000 of your belongings, and sometimes more. If you have equity in your home, that can be protected up to a much larger amount. Debts such as alimony and child support, student loans, most tax obligations, and debts resulting from fraudulent or malicious acts are not dischargeable. Therefore, in many chapter 7 bankruptcy filings, the bankruptcy trustee does not sell any of your assets and the creditors holding unsecured debt get nothing. However, please consult the Law Offices of Luke Jackson to determine if that is the case.

Having the advice and guidance of an experienced Chapter 7 bankruptcy lawyer during this process will be invaluable. Those filing for Chapter 7 bankruptcy will want to ensure that their unsecured debts are discharged. They want to guarantee that they will no longer be held personally liable for their debts and that their creditors will no longer be able to take collection actions against them. The Law Offices of Luke Jackson will work diligently to help debtors achieve the Chapter 7 bankruptcy discharge they so desperately need.

Get a new start and stop creditor harassment immediately!

Call us now at (310) 824-3611.

Chapter 7 Frequently Asked Questions:

• Stop Creditor Harassment
• Start to Rebuild Your Credit
• Stop Garnishments
• Relatively Inexpensive
• Eliminate Repossession Debts
• No more medical or credit card debt
• No payday or personal loans

Who can file a Chapter 7 Bankruptcy in California?
A person's residence, for bankruptcy purposes, is the place where he or she has lived for the majority of 180 days preceding the bankruptcy filing. For example, a person could file bankruptcy in a California bankruptcy court 91 days after moving to California from a residence in another state. If you file bankruptcy in California, however, you can only claim California's asset exemptions if you have resided in California for at least the previous two (2) years.

Do I still need to make my car and house payments in Chapter 7 bankruptcy?
It depends if you want to keep your car or house. In a Chapter 7 Bankruptcy, you will generally want to stay current with any secured debt for property you would like to keep such as your house or car. As such you must continue to make your regular house or car payments after the filing. If you have chosen to keep your house or car and do not make regular payments or fall behind on payments then the secured creditors can repossess or foreclose on the property. As long as the property is insured and you remain current on payments the law allows you to keep the property.

Can I discharge payday loans in Chapter 7 bankruptcy?
Yes. Payday loans are dischargeable in bankruptcy.

Can I still use my credit cards if I file a Chapter 7 Bankruptcy?
You should stop using your credit cards immediately and not incur any additional debt once you know you are going to file for Chapter 7 Bankruptcy.

After I file can creditors still harass me for payment of debts?
Not legally. The moment you file for bankruptcy protection, the Bankruptcy Court issues an order which is a stay against your creditors' actions to collect or attempt to collect debts you may owe. By law they must leave you alone. That means no more phone calls, no more collection letters, no more lawsuits, no repossessions, and no foreclosures. The Court's Order or "automatic stay" is issued pursuant to 11 United States Code, Section 362. The automatic stay prohibits any and all collections actions.

What is not dischargeable in a Bankruptcy?
One of the reasons people file bankruptcy is to get a "discharge." A discharge is a court order which states that you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge debts for–

• most taxes;
• child support;
• alimony;
• most student loans;
• court fines and criminal restitution; and
• personal injury caused by driving drunk or under the influence of drugs.

How long does the Chapter 7 bankruptcy process take?
A Chapter 7 bankruptcy typically takes 3-4 months from the time the petition is filed.