Many of our clients are struggling with their bills due to the coronavirus. If your debt has reached a serious level due to lost job, hospital bills or other circumstances that you can’t control, we are available to offer a free bankruptcy consultation to discuss your options for a clean slate.
DO YOU QUALIFY FOR A CH 7 BANKRUPTCY? FIND OUT NOW WITH A FREE CONSULTATION.
1. Free Consultation
Together, we’ll look at your finances and goals and determine the best plan to eliminate your debt while retaining your assets.
2. Retainer Law Firm / Stop Creditor Contact
Once we begin the process, creditors are prohibited from contacting you by phone, text or email.
3. File Bankruptcy Petition
4. Bankruptcy Appointment
After your bankruptcy trustee is appointed, we’ll schedule a meeting to review your assets. As your attorney we’ll advocate for you to retain as as many assets as possible.
5. 341 Hearing / Meeting of Creditors
6. Debts are Discharged
You legally no longer owe unsecured debts such as debts from credit cards or payday loans.
“As soon as you file for bankruptcy, an automatic stop is put to all garnishments, creditor contact, foreclosure proceedings, and car or truck repossessions. Stop the harassing calls. Then let me help you come up with a plan to give you a fresh start.”
-Attorney Russ Wyatt
What Debt Can Be Wiped Out in a CA Chapter 7 Bankruptcy?
Credit Card Debt
According to a recent study, medical bills are the main reason why 2/3 of Americans file for bankruptcy due to both the high costs for care and the time out of work. Medical bills are unsecured non-priority debt which will be wiped out.
What Assets are Protected in a CA Chapter 7 Bankruptcy?
California has a homestead exception under Ch 7 which allows filers to exempt some, but not all equity in your home depending upon factors such as your family’s size, your age and your disability status. Please contact us so we can explain how this complex calculation works.
Chapter 7 bankruptcy has a motor vehicle exemption which allows filers to exempt some equity.
Whether you can keep your car depends upon how much the vehicle is worth, how much you owe on it, and how much your applicable exemption amount is.
Retirement Account (401K)
ERISA qualified 401k plans are not considered property of the bankruptcy estate. This means that the Chapter 7 bankruptcy trustee can’t go after that money to pay your debts.
California Personal Bankruptcy: Frequently Asked Questions
I Live in the Sacramento Area and I am Considering Bankruptcy. How Does it Work?
If you live in the Sacramento area, are an individual or married and are unable to pay your debts, Chapter 7 bankruptcy is a legal option that you should consider. While it’s not appropriate for everybody, it can help many people get back on their financial feet. Once you apply, the bankruptcy court will take a look at your financials and makes a determination based on the U.S. Bankruptcy Code on whether or not you will receive a discharge, a consolidation of your payments, or other relief from the payment of your debts.
Why Should I File for Bankruptcy?
Let’s face it. Sometimes you reach a point where you recognize that you will never be able to pay your way out of debt. Meanwhile, your creditors are filing lawsuits against you, you are getting harassing phone calls from debt collectors, and you could face wage garnishments, bank levies, or the placement of liens on your property.
If your creditors have already begun the process of filing a lawsuit against you, they can garnish your wages in the likely event that they win the lawsuit. To prevent this, car repossessions, and foreclosures, you can file for bankruptcy. Once your case has been filed, all creditor actions against you must immediately stop while the court reviews your case.
How Does Chapter 7 Bankruptcy Work?
Chapter 7 bankruptcy is also known as “straight bankruptcy” or “liquidation bankruptcy”. It involves the discharge of all unsecured debts against your valuable assets.
You are required to list all current debts on your bankruptcy forms and determine whether or not you want to discharge them. In the case of unsecured debt, like medical debt or credit card debt, those debts will be discharged. In the case of secured debt like mortgage or car payments, your obligation to pay those debts is removed and any penalties for nonpayment are discharged.
In a Chapter 7, the bankruptcy trustee will look for any valuable property or assets you have and use those to repay your creditors. But most individuals who qualify under Chapter 7 do not have significant assets to liquidate and thus do not have to surrender any valuable property. Those who file under Chapter 7 are allowed to protect some of their valuable assets up to a certain amount.
Am I Eligible for Chapter 7 Bankruptcy?
Many of our clients are eligible for Chapter 7 – especially during these difficult times of Coronavirus. The state does set limits for automatic qualification which are based on the median family income. This figure changes from year to year. If you make less than the state median, you can file for Chapter 7 bankruptcy. If you are not sure, please give us a call so we can help you figure this out.
If you make more than the state median, then don’t give up. You will be required to pass a means test which determines whether or not an individual with more income than the state median can file under Chapter 7. If the bankruptcy court determines that you have enough disposable income, you may not be eligible for Chapter 7 bankruptcy.
|California Chapter 7 Bankruptcy Automatic Qualification|
|Family Size||CA Median State Income|
|4 or more*||$101,315|
* Add $8,100 for each individual in excess of 4
I Owe a Lot in Medical Bills? Will Chapter 7 Help Me?
Many of our clients who file Chapter 7 bankruptcy own a lot of money due to in medical expenses or have credit card debt. If that’s your situation, you are in good company. Medical bankruptcy is very common. According to one study, 66.5 percent of all bankruptcies were tied to medical issues — either because of high costs for care or time out of work. An estimated 530,000 families turn to bankruptcy each year because of medical issues and bills, the research found.
If this is your case, you are likely getting calls and mail from creditors and you will likely be facing lawsuits soon or are facing lawsuits already. You need a financial fresh start to stabilize your financial situation.
What Kinds of Debts can Chapter 7 Discharge?
Debts that can be discharged in Chapter 7 include unsecured debts like medical debt and credit card debt. Chapter 7 also discharges your obligation to pay on secured debts like your mortgage or your car. However, if you choose to discharge a secured debt in Chapter 7, you may forfeit your right to the property depending on a variety of factors, such s the type of asset.
Alternatively, those who file under Chapter 7 can reaffirm their intention to make payments on secured debts. But if their Chapter 7 is granted, they would not be able to file another Chapter 7 for eight years. That means that they would be on the hook to pay those debts and bite the bullet on penalties that arise from their non-payment if they default on their debt.
What Property Can I Keep in a Chapter 7 Bankruptcy?
California Law and federal law provide for exemptions that allow you to protect and keep your property from liquidation in a Chapter 7 bankruptcy. While every case is different, once qualified for a Chapter 7 Bankruptcy by one of our attorneys, our clients are generally able to keep all of their property.
How Can a Sacramento Bankruptcy Attorney Help Me?
Many folks do not know where to even begin when it comes to filing for bankruptcy. That is why bankruptcy attorneys exist. We help those who are saddled with crippling debt find the light at the end of the tunnel. Our job is to protect you from aggressive creditors, prevent the garnishment of your wages, and set you back on the path to financial freedom.
While there are certain consequences to your credit involving Chapter 7, we also help bankruptcy filers rebuild their credit after they have received their discharge. Chances are, your credit was not in a good place prior to filing for bankruptcy.
We then assess your debt liabilities, your financial situation, and help you make decisions on what property you want to exempt from liquidation.
If you are in a difficult situation, call the California bankruptcy attorneys at The Wyatt Law Corp today to learn more about how we can help