The compassionate bankruptcy law team at Weintraub & Selth, APC understands that life can be overwhelming when you are struggling to pay off your debts or have to deal with creditors and debt collectors who are hounding you for payments you simply can’t afford. That is why we dedicate our extensive resources to helping clients throughout the greater Los Angeles area file for Chapter 7 Bankruptcy so that they can take control of their financial situations.
Call (310) 220-4147 to discuss if Chapter 7 is the right option for you
What Is Chapter 7 Bankruptcy?
Chapter 7, also called straight (liquidation) bankruptcy, is the most common type of bankruptcy in the U.S. This type of bankruptcy is a good option when you have too much debt or have too many creditors for debt settlement. Additionally, some of your assets (exempt assets) can be protected under this type of bankruptcy agreement.
How Does Chapter 7 Work?
- Trustee review of financials: In a Chapter 7 bankruptcy, a trustee is given authority to examine all financial records in order to review the bankruptcy petition. It is the trustee’s job to verify that the information provided to the court matches your financial documents, such as pay stubs and bank statements, and ensure they are accurate.
- Assets are liquidated to pay debt: The trustee will then decide which assets or properties to sell in order to pay back creditors. While your Chapter 7 case is pending, there is an automatic stay that halts all credit collection activities.
Although Chapter 7 bankruptcies have declined in California over the years, it should not discourage you from reaching out to a legal professional to explore your options.
Am I Eligible to File for Chapter 7 Bankruptcy?
As long as you haven’t received a Chapter 7 bankruptcy discharge in the past eight years and depending on your income and the nature of your debts, you should be able to file. While the process can take four to six months, Chapter 7 bankruptcy enables individuals to eliminate credit card debt, judgments, medical bills, and other types of debt so they can move forward with their lives without the loss of exempt assets. Learn more about eligibility for Chapter 7.
How Can I Protect My Assets in Chapter 7 Bankruptcy?
Once it becomes clear that a bankruptcy filing should take place, the question of the best time to file arises. Our Chapter 7 lawyers carefully assess the factual and legal issues of your case to ensure the best possible outcome. Because of this careful approach, except in those rare circumstances where our client knew in advance of this possibility and decided to proceed with the case anyway, we have never had a client lose an asset in a bankruptcy case.
Call (310) 220-4147 to schedule a free consultation today.