Stockton Chapter 7 Bankruptcy Attorneys 

Chapter 7 Bankruptcy Basics

Chapter 7 bankruptcy is designed to give you a fresh start by eliminating all or most of your unsecured debt. It is generally appropriate for debtors who do not have much equity in assets. 

Unsecured debt is debt that is not backed by collateral. This generally includes:

• Credit card debt
• Medical/dental bills
• Payday/personal loans
• Overdue utility bills
• Any other instances where credit was extended without being backed by a specific asset

In order to qualify for a Chapter 7 filing, you must show that your income falls at or below the median income for a household of your size in California. This is commonly done through the “means test.” This test takes into consideration your income and expenses to come up with your disposable income. Your disposable income determines whether you qualify for a Chapter 7 or if you must move on to a Chapter 13 filing that involves a repayment plan. Our firm can assist you with this matter. 

The Automatic Stay

Once you file for a Chapter 7 bankruptcy, the court will issue an “automatic stay.” This is a court order that prohibits your creditors from any further contact with you regarding debt payment. Thus, it stops creditor phone calls, texts, and letters, creditor judgments, and wage garnishments. These creditors are limited to dealing with the bankruptcy court only. 

California Chapter 7 Exemptions

The state of California provides a list of property and assets that are protected from the liquidation process when you file for a Chapter 7. These are called “exemptions.” Common exemptions include equity in your home and vehicle, household items, wages, pensions, retirement accounts, tools of the trade, public benefits, and more. Thus, if you qualify for a Chapter 7, you may be able to retain many assets. Our Stockton bankruptcy law firm can evaluate your circumstances to determine how California exemptions will apply to you. 

Eliminating Unsecured Debt

Part of the Chapter 7 process includes credit counseling, attendance at a Meeting of Creditors which we will attend with you, and a financial education course. Once your case is complete, whatever unsecured debt remains that you listed in your filing documentation will be discharged by the court. 

Call Our Stockton Chapter 7 Bankruptcy Lawyers 

Filing for a Chapter 7 is an involved process requiring comprehensive documentation and various procedures that must be followed according to the law. Our legal team has decades of experience in representing and advocating for clients throughout the process. If you are facing runaway debt, we urge you to speak with one of our helpful attorneys as soon as possible to learn more about how we can represent you. 

Learn more about how our Stockton Chapter 7 bankruptcy attorneys can assist you in a free consultation. Contact us online or at (209) 243-7560.

Commonly Asked Chapter 7 Bankruptcy Questions

Can I keep my home in Chapter 7 bankruptcy?

Whether you can keep your home in Chapter 7 bankruptcy depends on several factors, such as whether you are current on your mortgage payments and whether your home has significant equity. A bankruptcy attorney can evaluate your situation and determine the best course of action.

How long does Chapter 7 bankruptcy take?

Chapter 7 bankruptcy is often the easiest and fastest form of bankruptcy filing, and it can typically be concluded in four to six months. However, the exact timeline can vary depending on the specifics of your case.

Do I need an attorney for Chapter 7 bankruptcy?

While it is possible to file for Chapter 7 bankruptcy without an attorney, it is not recommended. Bankruptcy law is complex, and an attorney can help ensure that your rights are protected and that you receive the maximum amount of protection available under the law.