Should I File for Chapter 7 Bankruptcy?
When most people talk about bankruptcy, they mean Chapter 7 bankruptcy. It allows people to eliminate most of their debts in a short time, while erecting a legal fence that keeps creditors and bill collectors at bay.
At The Law Offices of Michael H. Raichelson, we understand the fears that grip individuals, couples and small-business owners when debt collectors are pounding at the door. We use Chapter 7 to clear their debts and to protect their exempt property. For more information or a free consultation, contact us online or at 818-921-7306.
"If you cannot pay off your unsecured creditors in next three to five years, you are a serious candidate for Chapter 7 bankruptcy. Money you repay creditors at high interest will not be going to your retirement, your children's education or your future." - Attorney Michael H. Raichelson
West Hills Chapter 7 Attorney
With a Chapter 7 filing, you can erase or stop:
- Credit card debt
- Medical bills
- Most bills arising from a divorce
- Possibly IRS tax debts
- Possibly tax bills older than three years
- Most lawsuit judgments
- Lease and contract debts
- Wage garnishments
- Threats of foreclosure and repossession
- Other unsecured debts and obligations
Once you file a Chapter 7 bankruptcy, an "automatic stay" is granted by the court. In essence, the clock stops on debt collections, and bill collectors are prohibited from harassing you about the money you allegedly owe.
What Will I Keep? What Will I Lose?
Each state allows bankruptcy filers to keep certain assets. California has its own requirements, many with caps limiting the value of certain assets that will be retained. Usually, Chapter 7 bankruptcy filers find that all of their assets are exempt, including their home, vehicle, retirement savings and personal property.
Please visit our Bankruptcy Exemptions page for more information about assets that are exempt from California bankruptcies.
Chapter 7 — It is Still Available and is Quick
Many people believe, wrongly, that it became difficult to qualify for a Chapter 7 bankruptcy after Congress changed the bankruptcy laws in 2005. This is not true. While some people may find it more difficult, most people still do qualify even though the law has changed.
Chapter 7 is the preferred choice for individuals and couples that are deep in debt. This is because it erases most debts, cleanly and permanently, usually within a few months of filing.
Your credit score may or may not be harmed depending on your individual circumstances; however, if it goes down, it is possible to begin rebuilding credit almost immediately. Over time, it is possible to rebuild one's credit, acquire assets and restore financial solvency faster than through other means of debt relief.
By contrast, Chapter 13 bankruptcy may be a good option for those individuals who want to protect a large amount of property or find it difficult to qualify for a Chapter 7 bankruptcy. A Chapter 13 bankruptcy may last between three to five years and the debtor pays back a portion of their debt in a repayment plan. It may be the right solution depending on your circumstances.
Woodland Hills Chapter 7 Bankruptcy Attorney
We know how to get our clients a discharge if they qualify. We have a high success rate for qualifying bankruptcies.
To learn more about Chapter 7 bankruptcy from a lawyer who helps people every day, contact The Law Offices of Michael H. Raichelson in Woodland Hills, California, at 818-921-7306.
Spanish translation is available. Servicios de traducciones disponibles.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
