Van Nuys Chapter 7 Bankruptcy Lawyer
If you are struggling with significant debt that you are finding difficult to repay, Chapter 7 bankruptcy may be the right option for you. Chapter 7 bankruptcy is particularly helpful if you are being harassed by creditors, have a substantial amount of credit card debt, or are in the middle of a wage garnishment. The main advantage this type of bankruptcy offers is that once the process is over, you are no longer responsible for repaying the majority of your debt. Below, our Van Nuys Chapter 7 bankruptcy lawyer explains the process so you know what to expect.
What is the Process of Filing Chapter 7 Bankruptcy?
As soon as you file Chapter 7 bankruptcy, a judge will issue an automatic stay. The automatic stay prevents creditors from contacting you until your bankruptcy case is finalized. Any debt recovery methods, such as wage garnishments, must also stop until the bankruptcy case is over. Chapter 7 is fairly efficient compared to other types of bankruptcy. The process typically only lasts between four and six months and usually, there is no minimum of debt required to file. The fees are also fairly low compared with other types of bankruptcy.
One of the first actions the court will take during Chapter 7 is to assign a bankruptcy trustee to your case. The trustee will administer your estate, which consists of your debts and assets. If the trustee determines that you qualify for protection, they may liquidate some of your property to repay your creditors. Liquidation refers to the act of selling your property and distributing the proceeds among your creditors. Due to this, you cannot sell, gift, or otherwise transfer any property you owned before you filed for bankruptcy.
The bankruptcy trustee will also attend the Meeting of the Creditors in your case. During this meeting, you are asked questions under oath. Creditors can also attend the meeting and ask questions. It is critical that you provide your Van Nuys Chapter 7 bankruptcy lawyer with all information regarding your debts and assets to prevent any issues from arising between you and the trustee or your creditors.
Exemptions in Chapter 7 Bankruptcy
Again, during a Chapter 7 bankruptcy, some of your assets may be liquidated to repay your creditors. However, there are two types of exemptions that can protect some of your property.
The first is the 704 exemption which protects a certain amount of equity in your home. If your assets do not consist of real property but mainly personal property, the 703 exemption can protect your tax refunds, bank accounts, future income, investment accounts, and more.
Our Knowledgeable Chapter 7 Bankruptcy Lawyers in Van Nuys Can Help with Your Case
It can be difficult to determine if Chapter 7 bankruptcy is right for you. At Wadhwani & Shanfeld, our Van Nuys Chapter 7 bankruptcy lawyers can determine if you qualify, and if this is the type you should file. Call us now at 818-658-2669 or contact us online to schedule a consultation and to get the legal help you need.
