Los Angeles Chapter 7 Bankruptcy Lawyers
Helping Consumers Discharge Their Debts for Nearly Three DecadesIf you are looking for relief from mountains of debt, then filing for bankruptcy can be a viable option for helping you get a fresh start in life. The way that a Chapter 7 bankruptcy works is by allowing you to liquidate your assets or possessions to your creditors as a way to get rid of your debts.
While this sounds like an ideal plan, you will definitely need to have experienced Chapter 7 bankruptcy attorneys in Los Angeles help you file for this petition. The application itself can be very complicated, but with the aid of our knowledgeable team at The Turoci Bankruptcy Firm, you can have the greatest chance of being successful in your quest for absolving debts.
Call us today at 888-332-8362 to find out how Chapter 7 bankruptcy can rescue you from debt.
How Chapter 7 Bankruptcy Works
- Petition: In your bankruptcy petition, you will include all the objects you currently own and list the number of debts that you need to pay off. The petition will also show which possessions are exempt, and what you can finally discharge off your debt-pile.
- Automatic Stay: Once your petition is filed, the federal court will inform all creditors that they cannot keep repossessing your property and funds, whether through collecting monetary sums, foreclosing homes, or taking your car. This is called an automatic stay.
- Creditor Meeting: During the first court hearing with your creditors, a trustee will discuss all your financial activities in detail. This court trustee could potentially be a lawyer, but will not be a judge, since judges are not able to preside at these types of hearings. One surprising benefit is that usually during these hearings, the defendant can often protect most of their property from being passed off.
- Discharge: Once the court hearing takes place, you will then be able to have a final bankruptcy discharge within the next three months. This amazing option that means you no longer have to pay your owed bills. Any personal liability can now be removed, and creditors are barred from coming back to collect any more of your possessions.
What Types of Debts Are Discharged in Chapter 7?While Chapter 7 bankruptcy can wipe out most debts, there are some debts that are not dischargeable.
Debts that can be discharged:
- Credit card debts
- Medical bills
- Past utility bills
- Collection agency accounts
- Personal loans
- Past rent owed under lease agreements
- Civil court judgments (excluding fraud)
Debts that cannot be discharged:
- Child support and alimony payments
- Certain types of tax debt
- Debts for personal injury or death caused by DUI
- Debts from fraudulent acts
- Government fines or penalties
- Debts you did not include in your bankruptcy filing
Make sure that you discuss with your attorney the types of debts that may still remain after your bankruptcy so you are prepared to handle those types of debts.
Chapter 7 Eligibility RequirementsIn order to apply for Chapter 7 bankruptcy, there are some crucial requirements that you need to pass. This is where it becomes important for a reliable legal representative to help you navigate through the process of figuring out whether you are truly eligible.
According to the standards of the Bankruptcy Code for Chapter 7, some of these key requirements include:
- Being an individual, a registered corporation, partnership, or any other business entity, depending on the circumstance.
- Attending counseling sessions, whether as a single individual or in a group format for credit from a licensed agency.
- Agreement to halt business completely. Those who want to continue business activities and not resort to liquidation can file a different petition, called Chapter 11