If you are considering filing Chapter 7 bankruptcy, the first step is to make sure that you understand what this type of bankruptcy is all about. You can always call The Law Offices of Paul Y. Lee at 888-748-0025 to request a free bankruptcy consultation. In the meantime, you can also keep reading to get the basics.
Chapter 7 Bankruptcy is the Most Common Type of Bankruptcy Filed
Also known as Liquidation Bankruptcy or Straight Bankruptcy, Chapter 7 is the most common type of bankruptcy a person can file. In fact, there are more than 1.5 million bankruptcies filed in an average year in the United States, and more than a million of them are Chapter 7.
You Can Keep Exempt Property
In the state of California, you can choose between two categories of exemption. Which one you will choose depends on the type of property you own and how much equity you have in it. Some of the exempt property you might be able to keep includes your home, vehicles, retirement (such as 401k and IRAs), furniture, disability benefits, social security benefits, pensions, alimony, and child support.
You Can Discharge Unsecured Debts
Whether you are an individual or filing as a business, you can discharge a number of unsecured debts, depending on the facts of your case. This could include credit cards, business debt, personal loans, charge cards, medical bills, payday loans, lawsuits, unpaid taxes, and judgments against you.
If You Own a Home Then You Will Have Options
If you have a mortgage, then you can eliminate or discharge it through your Chapter 7 bankruptcy, which essentially means that you will give up the home but will no longer be responsible for making payments.
However, if you want to keep your home, and you can continue to make payments on it, then you can keep it. Once it has paid off, you will own the home just as you would if you did not file for bankruptcy.
A Person Must Qualify for Chapter 7 Bankruptcy
It is important to know that you can get a truly fresh start with Chapter 7 bankruptcy – but only if you qualify. For example, you cannot make over a certain amount, and other requirements must be followed. We can go over these when you contact The Law Offices of Paul Y. Lee at 888-748-0025.
Bankruptcy Was Designed to Help You
It might not feel comfortable taking advantage of the bankruptcy options but remember that they are intended to help debtors just like you. You deserve to start over with finances you can actually handle. Contact us now and let us help you out of the hole you are in.