Chapter 7 Bankruptcy Lawyers

San Francisco, San Jose, Oakland, Sacramento, Santa Clara

When most people talk about bankruptcy, they are talking about Chapter 7 Bankruptcy. The Chapter 7 Bankruptcy is designed to remove unsecured debt (called "discharge") in about 90 days. The Courts refer to this as a 'liquidation' bankruptcy.

Do not let the term liquidation scare you because the law has many exceptions in place which allows debtors to keep their personal belongings and in most cases their home and cars. (These are called "exemptions.") Contact us for an appointment to discuss your situation.

Learn more about Chapter 7 Bankruptcy below:

How do I know if I qualify for a Chapter 7 bankruptcy?
To qualify for chapter 7 bankruptcy, you must pass the"means test." The means test uses a formula to calculate your income over the 6 month period prior to filing and deducts any qualified deductions you have such as a mortgage payment or taxes. If your income is below the median household income you will most likely qualify for chapter 7 bankruptcy. In California, the current median income is based upon household size as follows:

1 person = $47,969
2 person = $64,647
3 person = $70,638
4 person = $79,194
5 person = $86,094
6 person = $92,994
7 person = $99,894
8 person = $106,794

Now that I have filed, how am I protected?
Once a case is filed, the "Automatic Stay" goes into effect immediately. This is the most powerful rule in bankruptcy as the automatic stay prohibits foreclosures, creditor harassment, wage garnishments, law suits and repossessions. That means creditors cannot call you, lawsuits must stop, and no repossessions are allowed without the Court's explicit approval. Contact us for an appointment to discuss your situation.

Now that I have filed, will I have to go to Court?
Once your case is filed, the court will set and notice a 341 Meeting of Creditors date to take place approximately 30-45 days from the file date. This is a mandatory meeting gives the Trustee and the creditors an opportunity to ask questions about the debt incurred and inquire about the Debtor's assets and financial history.

Not to worry, these meetings are usually extremely short (about 10 minutes) and we rarely see any creditors show up. An Attorney will be present with you at the meeting and you will need to bring a valid driver's license and your social security card.

Then you must complete the Financial Management Course within the next 45 days. The Financial Management Course is required for discharge and must be filed in a timely manner to avoid the case being closed without a discharge. The course is usually taken online just like the class you took before we filed. Contact us for an appointment to discuss your situation.

Now that I have filed, what should I expect?
Upon filing your petition, the court will appoint a Trustee to your case. The Trustee is responsible to find any assets you own that can be"liquidated" or sold to get money for your creditors. Remember, your "exemptions" will protect a good amount of your assets from the Trustee.

Most chapter 7 cases are"No Asset" cases and the creditors will not receive anything after the Debtor's exemptions are set aside.

Creditors are given about 90 days to object to your bankruptcy. Once the objection to dischargeability deadline date has passed, your bankruptcy will be finished and the Court will issue an"order of discharge and final decree". This document will state the date your bankruptcy finished with a Judge's signature. Contact us for an appointment to discuss your situation.

After the bankruptcy, are all my debts discharged?
There are certain unsecured debts that are non-dischargeable such as:

Debts for most taxes
Debts incurred to pay nondischargeable taxes
Debts which are not properly listed by the debtor
Debts for most fines, penalties, forfeitures or criminal obligations
Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated
Debts owed to certain retirement plans
Domestic support obligations
Student loan debt
Debts for which the debtor has given up the discharge protection by signing a reaffirmation agreement in compliance with the Bankruptcy Code
Debts that the bankruptcy court has ruled in this case are not discharged

I got my discharge but the creditor is still calling, help!
You may have post discharge violation! Please go to our post-discharge violation section for more information.