Chapter 7 Bankruptcy

Filing for Chapter 7 Bankruptcy?

Hire a Redlands Chapter 7 Bankruptcy Attorney With Over 30 Years of Experience

Do you have a mountain of debt that you cannot pay off? Are you worried about the financial future of your family? Filing for Chapter 7 bankruptcy may be the solution to your financial problems. This process may help give you and your family a fresh start. But you may also need the help of a qualified Redlands Chapter 7 bankruptcy attorney.

Here at Dolen, Tucker, Tierney & Abraham, we work hard to help families and businesses with their legal needs. Serving Redlands and the Inland Empire since 1973, our attorneys are ready to handle your legal issues. We can help your family weather and overcome your financial hardship.

What Is Chapter 7 Bankruptcy?

There are many two types of bankruptcy filings available to individuals and businesses that are having trouble with debt. Chapter 7 bankruptcy is the most common. In 2016, almost 795,000 Americans filed for bankruptcy. Nearly 62 percent of those filings were for Chapter 7 bankruptcy. It allows filers to eliminate debt and protect exempt property. Most persons filing Chapter 7 in our district are not required to sell any property. If so, proceeds from these sales would go to creditors. Unsecured debt that is not paid in the bankruptcy is discharged by court order. This allows you to get a fresh start while keeping all your exempt property.

What Qualifies as Exempt Property?

If property is not protected by an exemption, a court appointed Chapter 7 trustee will sell non-exempt property to pay down your debt. This may seem like a scary process at first, but California has a sizable list of exempt property that trustees cannot seize and sell. This list of exempt property/assets includes, but is not limited to:

  • Home equity up to a set amount
  • Vehicle equity up to a set amount
  • Most household furniture, furnishings, appliances and personal items
  • Social Security Benefits
  • Disability Benefits
  • Retirement accounts such as 401ks and IRAs
  • Pensions
  • Qualified Retirement Plans
  • Trade tools
  • Alimony
  • Child support

California determines these exempt items from two lists:

What Debt Does Chapter 7 Bankruptcy Eliminate?

Now that you know what property and assets Chapter 7 bankruptcy protects, you may be wondering what debts it eliminates. Chapter 7 is a versatile tool, especially with the assistance of our Redlands Chapter 7 bankruptcy attorney. It can discharge unsecured debts and secured debts, under the right circumstances.

Unsecured Debts

Some of the unsecured debts Chapter 7 bankruptcy can discharge include:

  • Business debt
  • Medical bills
  • Utility bills
  • Personal loans
  • Credit cards
  • And more

Secured Debts

Since creditors use collateral to back secured loans, you have two options if you want that debt discharged in Chapter 7 bankruptcy.

  • Surrender the collateral securing the loan. This will turn your secured loan into an unsecured loan. The court can then eliminate the debt with a discharge order.
  • Keep the collateral. If you are current with your payment, you may choose to keep the collateral and continue paying off that loan.

What Are the Benefits of Filing Chapter 7 Bankruptcy?

Choosing to file for Chapter 7 bankruptcy has many advantages for debtors. Once you file, an Automatic Stay goes into effect. This provision halts all collection activity from your creditors. This means wage garnishments, levies, court proceedings, creditor phone calls and foreclosures will stop. No more harassing phone calls about your debt, and no more worries about losing your home or car.

A further advantage to filing for Chapter 7 Bankruptcy is the time it takes to resolve. It can take as few as 120 days to wrap up a Chapter 7 filing. This means you can be on your way to rebuilding your credit in just a matter of months.

Schedule a Free Consultation With a Redlands Chapter 7 Bankruptcy Attorney Today!

Filing for Chapter 7 bankruptcy is no easy task. There are requirements and time restrictions you must meet to file. The paperwork can be complex, and creditors may try to stop your filing. Having M. Wayne Tucker at your side will improve your chances of success.

With over 30 years of experience, our Redlands Chapter 7 bankruptcy attorney has solutions to help you. Let him build a winning strategy to help conquer your financial issues. Call us at (909) 326-2769 for more answers to your Chapter 7 bankruptcy questions, or you can read our FAQ page. Remember, we are here to help, so call for a free consultation today!