How Does a Chapter 7 Bankruptcy Work?

If you are in debt with no hope of paying it back, a Chapter 7 bankruptcy may be the best option, allowing you to start over with a clean slate. After you file, a court will appoint a trustee to gather all of your financial assets and determine which ones can be sold to pay off your debts. Some of your assets may be exempt from this process, like your refrigerator or stove. However, some debts will never go away, such as alimony, child support, and student loans. A skilled bankruptcy attorney in Santa Rosa, such as David P. Gardner can help you determine if a Chapter 7 bankruptcy is right for you.

Chapter 7 Bankruptcy Requirements

To file a Chapter 7 bankruptcy, you must meet certain income requirements. If your current monthly income is higher than the California median income for a household of your size, you may not be eligible to file for Chapter 7 bankruptcy. Instead, you would need to take a means test that’s designed to determine whether or not you can pay back part of your debts by filing a Chapter 13 bankruptcy. Chapter 13 bankruptcy gives you time to pay off your debts instead of being exonerated from them.

So, if you need a clean financial start and don’t have property that you wish to keep (e.g., a home or car) and you want to get creditors off your back, Chapter 7 bankruptcy may be the best option for you. However, if your home is near foreclosure and you want to keep it, or if you have co-signers to some of your debts whom you want to protect, filing for Chapter 13 is probably better.

Call to Speak to a Bankruptcy Lawyer in Santa Rosa, California

If you’re considering a Chapter 7 bankruptcy in Santa Rosa, contact the expert attorneys at the David P. Gardner law firm. Call us today at (707) 658-4460 for a free initial consultation and to learn how we can help you clean your financial slate.

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