What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is when you wipe out your previous debt and begin again with a “fresh start”. It is a liquidation where your assets are collected by the trustee and sells them non-exempt.
Can any debt be filed as Chapter 7?
Certain debts are excluded, such as alimony, child support, fraudulent debt, certain taxes, student loans, and charges pertaining to certain items.
What is the difference between Chapter 7 and Chapter 13?
If you are behind on any mortgage or business property payments and you want to keep your property, Chapter 13 is your only option. Chapter 13 allows you to make overdue payments over time to catch up to your original mortgage/business property payment agreement. Chapter 7 caters to California residents who want to get rid of their immense debt and have minimal income.
Can I keep my secured assets, like a car or home?
Chapter 7 is not an option for those who are looking to keep their home, property or other secured assets if they are not completely covered by your California bankruptcy exemptions.
How long does it take for my case to be over?
On average, Chapter 7 cases take about 3-6 months to be discharged.
Will I owe anything after the discharge of my Chapter 7 bankruptcy case?
You will receive a fresh start, which is why many find filing for Chapter 7 to be the best option. However, you will owe for any secured assets that you have signed a “Reaffirmation Agreement” to.