This is the type of bankruptcy most people have in mind when they think about the word bankruptcy. Chapter 7 bankruptcy is also known as “Liquidation” or “Straight Bankruptcy.”
When properly planned and executed, most forms of consumer debt are eliminated in a Chapter 7 bankruptcy. You will keep much of your property (such as your home and automobile), and you will not have to make payments to a Trustee. For example, if you have been an official resident for the requisite amount of time, you should be able to keep some equity in your home and vehicle, as well as your home furnishings, 401(k) retirement account, and other assets.
You should know that some people cannot qualify for Chapter 7 bankruptcy. This is because eligibility is based on a variety of factors, including income and expenses. Additionally, certain types of debts are known as “non-dischargeable.” Non-dischargeable debts include alimony or child support, some income taxes, legal judgments resulting from drunk driving, fines, penalties and restitution regarding criminal convictions, and the like. There are other non-dischargeable debts as well.
As top Riverside California Chapter 7 bankruptcy attorneys, we can quickly determine if Chapter 7 is the best option for you, and guide you through the entire process. We know what you are going through and are here to assist you. Click here to read an article written by Mr. Fernandez about Chapter 7. Or, contact us today to learn more.