Chapter 7 Bankruptcy
Chapter 7 is a liquidation bankruptcy that wipes out most of your general unsecured debts such as credit cards and medical bills without the need to pay back balances through a repayment plan. To qualify for Chapter 7 bankruptcy you must meet income requirements called a “means test.” If you make too much money you will have to file under Chapter 13 bankruptcy.
When you file for Chapter 7 an “automatic stay” is issued by the court that immediately stops most creditors from pursuing collection efforts. A bankruptcy trustee is appointed to administer your case. In addition to reviewing your bankruptcy papers and supporting documents the Chapter 7 trustee’s job is to sell your nonexempt property (property that you can’t protect with a bankruptcy exemption – we claim exemptions for you on the bankruptcy petition) to pay back your creditors. If you don’t have any nonexempt assets your creditors receive nothing. The vast majority of Chapter 7 filings are what they call “no asset” or “no distribution” cases.
To schedule a free consultation, please call Hedtke Law Firm today at our Upland office at: 909 579-2233 or Covina office: 626 521 5488 or Moreno Valley office at: 951 746 1722.
Eliminating consumer and unsecured debt (credit cards, medical bills, personal loans) while keeping your car and home.
Some advantages to filing Chapter 7 with Hedtke Law Firm include:
- Help analyze your debt
- Determining your property exemptions
- Assuring your eligibility for Chapter 7
- Reaffirming your secured debts
- Assistance filing all the necessary Chapter 7 forms
Frequently Asked Questions
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 bankruptcy allows you to eliminate most unsecured debts, like credit cards and medical bills, through a liquidation process. Chapter 13 bankruptcy involves creating a repayment plan to pay back some or all of your debts over three to five years. The right option depends on your financial situation, income, and goals.
Will filing for bankruptcy stop creditor harassment?
Yes, filing for bankruptcy triggers an automatic stay, which halts most collection actions, including phone calls, wage garnishments, and lawsuits. This gives you relief from creditor harassment while you work through the bankruptcy process.
Can I keep my house and car if I file for bankruptcy?
In many cases, you can keep your house and car by using bankruptcy exemptions, as long as you stay current on payments. Chapter 13 bankruptcy is particularly helpful for catching up on missed mortgage or car loan payments.
How does bankruptcy affect my credit score?
Bankruptcy will initially lower your credit score and remain on your credit report for 7-10 years. However, it also gives you a chance to rebuild your credit by eliminating overwhelming debt and starting fresh financially.
Am I eligible to file for bankruptcy?
Eligibility depends on factors such as your income, debt type, and financial situation. Chapter 7 has a means test to determine eligibility, while Chapter 13 requires a steady income to create a repayment plan. A consultation with an experienced bankruptcy attorney can clarify your options. Call us To Know More
Our clients thought
Caroline Rivas
The thought of bankruptcy is very overwhelming and stressful, but Neil made me feel comfortable. He was patient and walked me through the process. Not only was the process quick, his prices are very reasonable. I would recommend Neil and the Hedtke Law Group to anyone looking for an honest and reliable attorney. Thank you Neil for my fresh start!
Jodi Ashbrook
Sarah Williams
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