Chapter 7 Bankruptcy

Chapter 7 Bankruptcy, often called the "fresh start bankruptcy" or "straight bankruptcy," is a liquidation proceeding.  Chapter 7 bankruptcy may eliminate most kinds of unsecured debt.  Some examples of unsecured debts Chapter 7 may eliminate are credit cards, medical bills, most personal loans, judgments resulting from car accidents, and deficiencies on repossessed vehicles.  The main purpose of a Chapter 7 is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debts.  In order to determine whether your specific debts are dischargeable via Chapter 7 bankruptcy, and whether all your assets will be fully protected, it is imperative that you consult with an experienced bankruptcy attorney.  At KM Law Group, our attorneys will take the time to conduct a thorough analysis of your situation, address all your concerns, and discuss the options that best fit your personal situation. 

Call KM Law Group at 866-500-3838 today to schedule a free consultation, or contact us online.  Our firm serves clients throughout all of Southern California.

Is a Chapter 7 Bankruptcy Right For You?

If you are drowning in debt and you feel as though there is no end in sight, bankruptcy may be the best option for you.  The following are a few questions for you to consider: Are you struggling at the end of the month to pay your living expenses?  Has your credit card debt become virtually unmanageable?  Are you falling behind in paying on your personal loans and/or payday advances?  If you answered "yes" to one or more of these questions, then Chapter 7 bankruptcy may be your best option.

Bankruptcy no longer has the personal stigma attached to it that was previously thought.  Many people mistakenly believe that filing bankruptcy will destroy their credit for the next ten years, and that they will be prevented from purchasing property within that time.  Not only is that far from the truth, in many cases filing a bankruptcy is the first step in rebuilding one's credit.  Credit is based on many different criteria, including debt-to-income ratio.  In many instances, filing for bankruptcy will allow you to improve your credit rating sooner than later.  By making on-time payments on new debt incurred after your bankruptcy, you may begin reestablishing your credit rating within a relatively short time from your discharge.  Therefore, filing bankruptcy may actually help your credit score because discharging your debts greatly improves your debt-to-income ratio.

Another point to keep in mind is that without those high minimum payments, you can actually start to save money each month and prepare for your future instead of living month-to-month, paycheck-to-paycheck.  To find out if you qualify for a Chapter 7 bankruptcy, you should contact one of KM Law Group's experienced bankruptcy attorneys at 866-500-3838 today to schedule a free consultation.  Or contact us online.  Our firm serves clients throughout all of Southern California.

Chapter 7 Eligibility

A Chapter 7 bankruptcy will usually take approximately 3-4 months to complete from the filing of the bankruptcy petition to the discharge of the debt, although this process may take longer for more complicated cases.  To qualify for relief under Chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity.  Subject to the means test, relief is available under Chapter 7 irrespective of the amount of the debtor's debts or whether the debtor is solvent or insolvent.  An individual cannot file under Chapter 7, or any other Chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.  In addition, no individual may be a debtor under Chapter 7 or any Chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing.  At KM Law Group, our experienced attorneys will conduct a free consultation, which includes a thorough analysis of your situation in order to verify eligibility.  Once the attorney verifies eligibility, he or she will skillfully guide you throughout the entire process from start to finish.  

One of the primary purposes of bankruptcy is to discharge certain debts to give people a "fresh start."  The debtor has no liability for discharged debts.  In a Chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations.  Although an individual Chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged.  Moreover, a bankruptcy discharge alone does not extinguish a lien on property.  To determine whether you have a lien is removable you should seek the advice of an experienced attorney.  At KM Law Group our experienced attorneys will assist you in obtaining lien records, and will discuss your options in removing the subject liens.

Dischargeability of Debts

When filing Chapter 7 bankruptcy, a typical outcome is that the debtor is discharged from liability for most unsecured debts.  Here is a list of debts not typically discharged, however consulting with an experienced bankruptcy attorney is always advised:

The most common non-dischargeable debts include:

• All debts not listed in the bankruptcy petition
• Student loans - unless undue hardship to repay
• Taxes - federal, state, and municipal
• Fines for violating the law: including criminal fines and traffic tickets
• Court-ordered alimony and child support
• Debts for personal injury caused by driving while intoxicated (i.e DUI)

In addition, a creditor may ask a court to determine that some debts are non-dischargeable, including:

• Debts incurred because of fraud
• Debts for willful injury to another's person or their property
• Divorce and other property settlements
• Debts from embezzlement

Allow one of our experienced bankruptcy attorney's lead you through the complete process from beginning to end.  We will be by your side every step of the way.  Don't be fooled by other firms where you meet with the attorney once and then your case is passed off to a legal assistant to complete.  The attorneys at KM Law Group, will lead you through the complete process from your initial consultation to the discharge of your case.