Chapter 7 Lawyer in Chico & Butte County
Experienced Butte County Bankruptcy Attorney
When individuals and spouses find themselves trapped in a downward spiral where their finances are concerned, unable to keep up and falling further and further into debt, Chapter 7 bankruptcy may be a workable solution to help alleviate the stress and inability to catch up. Often times, families get so far behind that they face losing what they have worked so hard to achieve and acquire, plus have the added burden of creditor harassment and potential lawsuits on top of knowing they cannot possibly get out of their situation on their own.
What is Chapter 7 Bankruptcy?
Chapter 7 is will allow you discharge specific types of debt. This means you will be released from the debt and you will not need to pay it back. When you file for Chapter 7, all of your nonexempt property will be handed over to a trustee. They will liquidate your nonexempt property and distribute the funds to creditors.
- More About Bankruptcy Exemptions
Even if you are not at a point where you are facing repossession, foreclosure or wage garnishment, if you are drowning in debt, the best way to determine what options are available to you is to consult a highly skilled Butte County bankruptcy lawyer about your situation. You may qualify for Chapter 7, which can eliminate your debts in 4 - 6 months and give you a clean slate to work from.
How to Qualify for Chapter 7
There are specific financial requirements for those looking to pursue Chapter 7 bankruptcy.
Here are some of the qualifying factors:
- You must pass a means test, which will show your income, expenses and debt to learn whether you could feasibly make any type of payments toward your debt, in which case, Chapter 13 will likely be more appropriate.
- If you filed for bankruptcy in the past, you must wait 6 - 8 years (depending on the type bankruptcy you filed) before you are eligible to file again.
- You cannot have a bankruptcy case that was dismissed within the last 180 days.
- You must also complete a credit counseling course that is approved by the U.S. Trustee Program
Benefits of Chapter 7
Are you struggling against serious debt? Filing can be your first step to overcoming and gaining a fresh new start!
Below are some of the benefits of Chapter 7:
- Upon filing, an "automatic stay" is triggered, which stop creditors from collection from you. This includes protection from wage garnishments.
- After your debt is discharged, you continue to be protected from creditors. The only exception is for support obligations and recent tax debt.
- Bankruptcy exemptions protect your "typical" assets such as clothes, car, furniture, etc.
To see if this option is right for your situation, speak with our Chapter 7 attorney in Chico.
What is the Chapter 7 Process?
Below is an overview of the Chapter 7 process works. It mainly involves counseling courses, meetings, and submitting documents on time.
The Chapter 7 process:
- Attend a credit counseling course approved by the U.S. Trustee Program online or via phone.
- File for bankruptcy.
- Send a copy of your tax return to the bankruptcy trustee.
- Attend a creditor’s meeting 30 days after filing for bankruptcy and mail a copy of your certificate of completion to the court.
- Attend a budget counseling course online or via phone within 60 days of filing
Around 60 to 75 days after the creditor's meeting, you should receive a letter that confirms your debt is discharged.
For guidance, call our Chico Chapter 7 attorney at (888) 325-1181.
What Debts Are Dischargeable?
Most unsecured debts and some secured debts may be discharged when filing for Chapter 7 bankruptcy. Below are a few examples of debts that may be discharged.
List of Unsecured Debts
- Medical Bills
- Utility Bills
- Credit Card Charges
- Back Rent
- Personal Loans
Secured debt can be discharged, however, if there are liens attached, it will not go away completely. The creditor has the right to recover the property if the debt is not get paid. For example, you may discharge a loan for a car, but you will also need to give up your car.
What Debts Are Not Dischargeable?
Chapter 7 does not discharge all unsecured debts. Below is a list of non-dischargeable debt:
- Child Support or Alimony
- Student Loans
- Certain Types of Tax Debt
- Dischargeable debt that is incurred soon before your filing
Chapter 7 bankruptcy may include the liquidation of some property in order to satisfy creditors. With several years of practice, the skilled legal team of The Law Office of Nikki Farris can provide you with full information and answers to your questions about debt resolution services including bankruptcy and alternatives to bankruptcy that are available. We are a family run business and are extremely dedicated to helping individuals and families become debt free and are committed to helping you make the best choices to benefit your future. Start taking control now by speaking with one of our highly qualified attorneys about your situation today.
“Nikki Farris is very easy to talk to, professional and knowledgeable.” - Rachele T.
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