Folsom Chapter 7 Bankruptcy Lawyer
As of 2016, the average American household owes more than $16,000 in credit card debt, more than $28,000 in auto loan debt, nearly $173,000 in mortgage debt, or some combination of the foregoing figures. Between prolonged unemployment, medical emergencies, business difficulties, an increasing cost of living, and other financial factors, countless Californians are forced to live with the crushing weight of insurmountable debt, wondering how they will afford to fill up their gas tanks, send their children to college, or simply keep a roof over their heads.
The good news is that debt doesn’t have to control your life any longer. Whether you’ve seen a reduction to your income, are facing foreclosure, or simply feel overwhelmed by your current obligations to lenders, Chapter 7 bankruptcy may be able to help you manage your finances, protect certain possessions, and even position you to start rebuilding your credit. However, the process of filing for bankruptcy can be difficult and confusing, so it is vital that you are assisted by a skilled Folsom bankruptcy attorney with extensive experience handling Chapter 7 bankruptcy cases in California.
To learn more about how filing for Chapter 7 bankruptcy could help you regain control of your finances, call The Bankruptcy Group at (800) 920-5351 for a free, confidential consultation.
What Types of Debt Can Be Eliminated with Chapter 7 Bankruptcy?
There are several different types of bankruptcy in California, each named for its corresponding chapter of the U.S. Bankruptcy Code. Many consumer bankruptcies fall into a category known as Chapter 7. While all bankruptcies share the same fundamental purpose – helping individuals or businesses address unmanageable debt – Chapter 7 bankruptcies are distinguished by several characteristics, notably the speedy relief they provide from various types of consumer debt.
In Chapter 7 bankruptcy, a court-appointed official called a trustee will liquidate part of your property in order to repay your creditors, which is why Chapter 7 is sometimes referred to as “liquidation” bankruptcy. Keep in mind that this does not mean you will lose all of your possessions. In fact, you may keep many of your possessions by using California’s Chapter 7 exemptions. Further, when you file for Chapter 7 bankruptcy, the court issues an injunction called the “automatic stay,” which temporarily blocks or freezes most debt collection actions.
When a Chapter 7 case is successfully completed, the debtor will receive a discharge, which releases him or her from liability for various debts known as “dischargeable” debts. Dischargeable debts, or debts that can be eliminated, in a Chapter 7 bankruptcy case include:
- Credit Card Debt
- Business Debts
- Medical Debt
- Past-Due Rent
- Past-Due Utilities
- Personal Loans
- Social Security Overpayments
Depending on the situation, you may also be able to discharge certain debts related to:
- Car Accident Claims
- Court Judgments
- Dishonored Checks
- Student Loans
- Tax Penalties
Who Is Eligible to File Chapter 7 Bankruptcy in California?
Also known as straight bankruptcy, Chapter 7 bankruptcies are generally the quickest and simplest types of bankruptcy cases, which makes them relatively popular among Californians who are seeking fast relief from financial burdens. However, not all debtors qualify for Chapter 7 bankruptcy. For example, you will not be able obtain a second Chapter 7 discharge if you previously filed for Chapter 7 within the last eight years. The Bankruptcy Group will help you understand whether Chapter 7 bankruptcy is suitable for you, advise you on the timing of your filing, and counsel you throughout the process.
Beyond the general purpose of managing debt, each type of bankruptcy carries its own unique set of legal considerations. While it is essential for you to consult with an attorney before filing for bankruptcy, Chapter 7 bankruptcy in Folsom may be appropriate for you if:
- You have significant medical debt, credit card debt, or personal debts;
- You are at risk of foreclosure;
- Your car is at risk of repossession; or
- Your monthly expenses outweigh your net income.
The knowledgeable Chapter 7 bankruptcy lawyers at The Bankruptcy Group are highly experienced in handling all types of consumer debt. We will sit down with you to go over what you owe and what your financial goals are in detail, and we will determine an appropriate course of action based on your unique financial circumstances.
Need Help Managing Debt? Contact Our Folsom Chapter 7 Bankruptcy Attorneys
Under the right circumstances, liquidation bankruptcy can provide profound and immediate financial relief for Californians who are struggling to manage overwhelming debt. Still, it is critical that you are guided by a knowledgeable Folsom bankruptcy lawyer who can offer you options and explain their potential outcomes. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) have complicated the process of filing for bankruptcy, so it is crucial that you are represented by an attorney who can protect your rights while working toward a favorable resolution for your case.
The accomplished legal team at The Bankruptcy Group has years of experience helping hard-working Californians file for Chapter 7 bankruptcy. If you need help managing your debts, but aren’t sure where to start, turn to The Bankruptcy Group for immediate assistance. Call our law offices at (800) 920-5351 for a free legal consultation. We can help you wipe the slate clean for a fresh financial start.