Chapter 7 Bankruptcy

California Chapter 7 Bankruptcy Attorney

Individuals and families seeking to eliminate all or some of their secured and unsecured consumer debt seek bankruptcy protection under Chapter 7 of the U.S. Bankruptcy Code. Most people who file bankruptcy think of Chapter 7 first in order to discharge their debts. Under the rules of Chapter 7, the filer may have the option to continue to pay the mortgage payment and car payment if the debt qualifies for reaffirmation by the bankruptcy courts.

Do You Qualify?

In October, 2005, the U.S. Congress passed The Bankruptcy Abuse Prevention and Consumer Protection Act. It is commonly referred to as the new bankruptcy law. Under provisions of the law, individuals and families filing for bankruptcy must first pass a qualifying test to determine whether they can file for Chapter 7 bankruptcy to eliminate their debts, or must file Chapter 13, to restructure their debt in a court-supervised repayment plan over three or five years. The bankruptcy means test inputs your income and debt to determine whether the courts will say whether you have enough disposable income to continue to pay your creditors, albeit at a lower interest rate or restructured repayment period.

Advantages of Chapter 7

The obvious advantage of filing Chapter 7 is that most or all consumer debt will be eliminated. Under most conditions, the following types of debt qualified for discharge: credit cards, medical bills, secured loans, mortgages if you are willing to lose your house and tax debt after certain conditions have been met with the IRS.

As well as eliminating much of your debt, filing Chapter 7 also has the advantage of placing an automatic stay of execution on any collections actions your creditors have in process against you. This includes stopping foreclosure proceedings, avoiding wage garnishments and preventing auto repossession.

Why Chapter 7 May Not Be the Best Answer for Your Long-Term Financial Success

Bankruptcy should be used as a tool to improve your outlook for building personal wealth by investing or saving your improved monthly cash flow, rather than paying a creditor. Do not make the mistake of thinking that Chapter 7 is a cure-all. Several types of debt cannot be discharged and will remain due to creditors in full. Some types of debt that cannot be discharged or restructured under Chapter 7 include most student loans, child support, and stripped-off second mortgages.

The Liviakis Law Firm is ready to answer all of your questions about Chapter 7 bankruptcy and which debt relief options will give you the best opportunity to improve your situation for an improved financial future. Not all bankruptcy is the same and not all bankruptcy attorneys are the same. I work diligently to find effective, intelligent strategies that are focused on my client’s overall financial goals, free of debt.

With offices conveniently located in Rancho Cordova and Sacramento, I represent clients in communities throughout Sacramento County, El Dorado County and Placer County, California. My offices are open 9 a.m. to 5 p.m. Monday through Friday and include free parking.

Contact us for a free consultation with an experienced, knowledgeable Sacramento Chapter 7 bankruptcy attorney who is ready to help you start building a secure financial future. The bankruptcy lawyer you hire will make a difference in the outcome of your case and the outlook for your financial future.