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Chapter 7 Bankruptcy

If you're thinking about filing bankruptcy, there are some things that you should know. You would generally file Chapter 7 bankruptcy if you wanted to 'wipe out' your debt when there is no way to pay it off. Most people try to find a way to continue paying on their home and their car which can help keep them out of the bankruptcy proceedings (each person's situation is unique, not everyone may be able to keep their house or car).

This is the simplest type of bankruptcy and the most common, because most people who file for bankruptcy do not have the means to reorganize their debts and pay them off. Chapter 7 takes only a few months, and the length of time depends on the complexity of the case and how busy the courts are. There are standards set by the districts to determine if your income is below California's median income and to determine whether or not you can file for Chapter 7 and have your debts wiped away.

If your income is at or over the state's median income level, there are other tests that are applied to see if you qualify for Chapter 7. If you are in this position, you need to see a lawyer about filing. It is not something that you should try to do on your own. It might seem simple, but it's actually quite complicated. We are experienced at completing Chapter 7 bankruptcy filings quickly so that you can have a fresh start and begin your new life debt free.

Chapter 7 bankruptcy as defined by the United States Bankruptcy Court in the Eastern District of California:

Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are commonly referred to as "straight bankruptcy" or "liquidation" cases, and may be filed by an individual, corporation, or a partnership. Under chapter 7, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership's or corporation's debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.

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