Chapter 7 Bankruptcy
Chapter 7 Bankruptcy
Why File for Bankruptcy?
The main reason people file for bankruptcy is too much debt. Life is expensive and when someone has a job loss, move, health issues, divorce, failed business it is easy to get buried in debt. Bankruptcy can help clean up debt and give someone a fresh start.
Get Rid of Pay Day Loans and Credit Card Debt
Stop Wage Garnishments and Bank Levies
Eliminate Expensive Medical Bills
Stop Lawsuits and Wipe Out Judgments
Stop Evictions and Foreclosures
Stop Car Repossessions
What Steps Do I take to File for Bankruptcy?
Below is a general summary of the steps to file for bankruptcy. If you want an even more detailed explanation see our page titled “Summary of the Chapter 7 Bankruptcy Process” – here.
1. Determine if You Qualify. The first step to see if you are allowed to wipe out your debts in a chapter 7 bankruptcy is to see if you qualify. Thus, you will talk directly with lawyer Michael Johnson who is knowledgeable and experienced with hundreds and hundreds of chapter 7 cases. Your bankruptcy consultation will be directly with a bankruptcy attorney, not with a paralegal or intake person. During the consultation a review will be done of you income, expenses, debts, assets, and financial affairs. If you qualify, then you will begin to work on gathering your paperwork.
2. Prepare Documents. After you provide our office with your paperwork we will work with you to prepare your bankruptcy petition. Together we will review, explain, and sign your bankruptcy paperwork. Also, you will take a short credit counseling class on the computer or on the phone. Once your petition is prepared and you have satisfied your credit counseling requirements you will be in a position to submit your paperwork to the court. When your paperwork is filed with the court it creates a bankruptcy “automatic stay” which stops creditors from calling and contacting you. It also stops wage garnishments, bank levies, and foreclosures. The chapter 7 bankruptcy process takes on the average about 3 1/2 months to go through.
3. Bankruptcy Process. Once your bankruptcy paperwork has been submitted then you will have formally started the chapter 7 bankruptcy process. You will be expected to take a second credit counseling class on the computer or phone. Also, Attorney Michael Johnson will accompany you to a court hearing called a “341 meeting of creditors” where you are interviewed by a bankruptcy trustee. The trustee is responsible to review and to ensure that you have completed your paperwork correctly, disclosed all of your assets, and verify your identity. Creditors are invited to attend the meeting but rarely attend unless there has been fraud or abuse.
4. Chapter 7 Bankruptcy Discharge. Approximately 75 days after you attend your court hearing, if there aren’t any issues, the bankruptcy court grants you a discharge of your debts. Your qualified debts are then wiped out and you are off to a fresh start!
End the Stress and Sorry! Become Debt Free!
Honest, hard working people file bankruptcy. Our office has worked with hundreds of good people. We enjoy getting to know each person and learning how bankruptcy can help give them a fresh start.
Is it Bad to File Bankruptcy?
Bankruptcy is the oldest debt relief program in the country. From a public policy perspective the government does not want to see its citizens trapped in debt and unable to support their families. Also, the government would prefer for people not just to be working but to be active consumers in the economy spending money and paying taxes, not just servicing debt. Filing bankruptcy is a privilege and cannot be done frequently. The government sets specific guidelines on who can file bankruptcy and the type of bankruptcy that they can file to prevent abuse and to protect creditors. Also, many people quickly rebuild their credit and improve their scores in the months after bankruptcy. Thus, don’t be ashamed to talk with bankruptcy Attorney Michael Johnson, he is known as a caring and non-judgmental Sacramento bankruptcy attorney.
Good People File Bankruptcy!
It’s true, bad stuff happens to good people. As a result many good people have filed bankruptcy to help them get back on their feet. I have worked with a wide variety of people from all walks of life, professions, ages, races, religions, and gender. Chances are you have a friend, neighbor, co-worker, or family member who filed bankruptcy and you don’t even know it have worked with a Sacramento bankruptcy lawyer.
Bankruptcy Makes Life a Little Easier
Nobody said life would be perfect, but a Chapter 7 Bankruptcy may allow you to break free from your debt and to gain a new financial future. Bankruptcy is a tool that can put you on the path of constructing the life you want for you and your family. We all have set backs and bankruptcy gives you the boost you need to push forward.
How Do You Get Started?
If you would like to learn more about how a chapter 7 bankruptcy may be able to help you get a new lease of life, then feel free to contact our office for a free and confidential consultation. Some of the initial questions that will be covered are:
How much is your gross monthly income?
How much is your debt and what type of debt?
Are you single, married, separated, divorced?
Have you lived in California for the past two years?
Do you own any real estate?
There will be other questions similar questions covered during the consultation. Also, it is helpful if you begin to gather your paperwork such as: current pay stubs; tax returns; bank statements; credit report; mortgage statements; car statements; retirement and investment account statements.
Let Us Help You!
My goal is to provide you with outstanding legal services with excellent client service. Debt can cause despair and stress. Many of my clients come to me feeling discouraged, overwhelmed and sometimes emotionally broken. I understand the need to give each client encouragement, hope, and the motivation to help them put the pieces of their financial life back together.
Contact Us Today
Office: (916) 350-4829
Cellular: (916) 549-1189
Main office
9245 Laguna Springs Drive, Suite 200
Elk Grove, CA 95758
Attorney Michael Johnson has worked with hundreds of people in preparing and filing bankruptcy. The most common form of consumer bankruptcy is chapter 7. A chapter 7 bankruptcy can help people put an end to debt that has overwhelmed their lives and that they can’t repay. The objective is discharging unwanted debt. Individuals must qualify for bankruptcy. The process generally takes about 90 – 120 days from the time of filing the bankruptcy petition to obtaining a bankruptcy discharge.
Questions and Answers about Bankruptcy
What is a Chapter 7 bankruptcy? A Chapter 7 bankruptcy is a way to get a fresh start by wiping out unwanted debt. Filing bankruptcy is a process of filing a “voluntary petition” with the bankruptcy court to have your debts “discharged” or wiped out. A discharge is an injunction (prohibition) to prevent your creditors from being able to collect on such debt.
Will a Chapter 7 bankruptcy stop harassment from my creditors? Yes, when you file bankruptcy the court grants an “automatic stay” stopping your creditors from pursuing collection action from you. Thus, by filing bankruptcy it will stop harassing phone calls, garnishments, levies, and judgments.
What debts can be discharged if I file bankruptcy? There are many debts that can be discharged when you file bankruptcy to receive debt relief. The most common types of debts that are discharged are credit card debt, medical, and other unsecured debts. Debts are placed into different categories when you file bankruptcy such as “secured” or “unsecured” and “priority” and “non-priority” debts. Debts are discharged depending on the type and category of the debt.
Will I lose all of my property if I file bankruptcy? No. The bankruptcy code allows people filing bankruptcy the ability to “exempt” or protect a certain value of their personal property. In California there are what they refer to as 703 and 704 exemptions. Prior to filing your bankruptcy petition it is important to create a list of all your property, determine the value, and then to carefully exempt your property to the extent possible. Working with an experienced bankruptcy attorney is critical to protecting your property from your creditors.
Will I lose my house if I file bankruptcy? Many people that file bankruptcy are able to keep their homes. However, it depends on whether your home has equity and how much. Also, it depends on other facts such as whether you are current with your mortgage payments. Thus, if you are current on your mortgage payments and you have little or no equity in your home you shouldn’t have a problem keeping your home if you file bankruptcy.
Will I ever be able to get credit again if I file bankruptcy? In most cases Yes. Although when you file bankruptcy it will be reported on your credit report and will impact your credit score you will be able to rebuild your credit score with a little effort and time. Then, after such efforts you should be in a position to buy a car or a home.
Can anyone file a Chapter 7 bankruptcy? No, those that file bankruptcy must meet certain requirements and pass the U.S. Trustee’s means test guidelines. Thus, if you are considering bankruptcy you should talk to an experienced bankruptcy attorney regarding your specific income and expenses to see if are eligible to file bankruptcy.