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Chapter 7 Bankruptcy : Personal Service Law Firm, Bankruptcy, Family Law, Criminal Law, Personal Injury

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy – Fresh Start

Chapter 7 Bankruptcy, also known as liquidation, is the most common form of bankruptcy used today.  The purpose behind a chapter 7 is to help you through unforeseen financial difficulties and assist you back on your feet and provide you with a Fresh Start.

In a Chapter 7 Bankruptcy, a government appointed trustee will administer your estate and all nonexempt property may be liquidated to repay your creditors according to their priority.  However, in most Chapter 7 cases, trustees have little or no nonexempt property available to them to liquidate. Very few creditors, if any, will ever receive payment from your estate and most remaining debts will be discharged and you will be provided a fresh start.

Most Consumer Debt can be Discharged in Bankruptcy

Most debts can be discharged in Chapter 7 bankruptcy.  For instance, unsecured consumer debt such as credit cards, legal bills, medical bills and personal loans may be discharged.  Additionally, judgments not already attached to real property, and tax liens older than three years may be discharged.

Generally, it is easier to list the debt that is non-dischargeable in Bankruptcy.  Included on that list is; child support and spousal support, attorney fees as a result of enforcing support payments, school loans, court-imposed fines, income taxes less than three years, and any debt resulting from an act of fraud or breach of a fiduciary duty. 

Call the Spear Law Firm to discuss all of your debts and understand what you can and cannot expect to be dischargeable in your individual case.

Know your Exemptions

Bankruptcy Code allows debtors to retain specific “exempt” assets from the claims of your creditors.  Understanding of all exempt assets such as residential home equity, equity in your vehicle, pensions, and certain household property is a critical element of bankruptcy.  the Spear Law Firm will ensure that you utilize all of your allowable exemptions according to your individual circumstances.

Other Benefits of Filing Chapter Bankruptcy

It is also important to understand, when a bankruptcy is filed all actions against you must immediately come to a stop, including; Foreclosures, Rental Unit Eviction, Wage Garnishment, Credit Card Harassment, Tax Liens, Medical Bills, Lawsuits and Judgments, and more.  Actions can only continue, if at all, after a Motion for Relief from Automatic Stay has been granted by the Bankruptcy Court, or the discharge has been granted.

To learn more call us today

The Spear Law Firm takes great care to offer personal service to all of their clients. The attorneys and the staff will listen to you, take the time to fully understand your situation and answer any of your questions.

At the Spear Law Firm, our goal is to ensure a fair and reasonable outcome for you. We have practiced Bankruptcy Law for over 15 years, and bring vast experience and knowledge of Bankruptcy Law matters to effectively represent you.  Contact us today for skilled and compassionate bankruptcy law representation.

For more information, or to discuss your specific case, contact the Spear Law Firm of the San Fernando Valley in Tarzana today.  For a free initial consultation, call (877) 327-5291 / 8-SPEARLAW-1.