Debt Relief Through Liquidation
Consumers and small businesses can find debt relief under Chapter 7. It is the quickest, most straightforward chapter of bankruptcy and allows you to liquidate certain assets and pay your creditors a reduced amount of the total that you owe. However, Chapter 7 is not the solution for everyone. To discuss your debts, assets and income with a bankruptcy attorney, call Weintraub & Selth. Before you file, we highly recommend contacting us for a consultation.
Call our Los Angeles office at (310) 584-7702 or toll free (866) 572-2423 to discuss your options including alternatives to bankruptcy.
Our attorneys have decades of experience in Chapters 7, 11 and 13. However, we also have many clients who believed that bankruptcy was their only option. We are extremely adept at finding other forms of debt relief for our clients. Many times, consolidation, negotiations, settlement and other options are attractive and viable options in contrast to liquidation.
Discharging Unsecured Debts, Protecting your Assets
Chapter 7 is typically filed by people who have assets that are exempt and who have considerable unsecured debt:
- Credit card debt
- Medical bills
- Personal loans
- Utility bills
- Loans or credit that required no collateral
If Chapter 7 is appropriate for your circumstances, the attorneys of Weintraub & Selth can help plan your exempt assets so you can protect your property from liquidation. Successfully completing Chapter 7 will result in a discharge of unsecured debts. Because there is no collateral to repossess with unsecured debts, the debts are discharged.
Depending on the details of your case, you may have to return some secured assets to creditors. However, there are numerous assets that are exempt from liquidation in Chapter 7. Do not assume that you will lose your house or your car just because you file Chapter 7. We will thoroughly analyze and explain which assets are exempt and we will do all that the law allows to protect your assets.
Debt relief in Chapter 7 is also provided by the automatic stay. When you file for any type of bankruptcy, the automatic stay makes it illegal for creditors to harass you or take collection actions against you. This includes foreclosure, repossession and wage garnishment. This short-term debt relief can alleviate considerable stress in the short-term. Completing the Chapter 7 process can lead to long-term benefits.