What is Chapter 7 Bankruptcy

Bankruptcy can provide you with a “fresh start” by eliminating many types of debts such as credit card or medical bills. At the conclusion of your Bankruptcy you will receive a discharge which prohibits creditors from collecting on the discharged debts.

What is an Automatic Stay?

Additionally, as soon as you file for Bankruptcy an automatic stay will take effect. The Automatic Stay will prevent creditors from harassing you and collecting on most of your debts while the Bankruptcy application is pending. Thus, while the Stay is pending your creditors are generally not allowed to call you, garnish your wages or proceed with lawsuits.

How long is the Bankruptcy Process?

A Chapter 7 Bankruptcy usually takes approximately 120 days after we file the petition with the Bankruptcy court.

How much does Bankruptcy cost?

The government filing fee for Bankruptcy is $306. The attorney’s fee varies depending upon the type of case you have. Call our office at 916-313-9069 for a free consultation to learn about your Bankruptcy options.

What are the income requirements for Chapter 7 Bankruptcy?

You will need to determine your average monthly income for the last six months immediately before filing your bankruptcy petition. If your current monthly income is less than the median income for the state of California, you may be able to file for Chapter 7 bankruptcy. If your income exceeds the state’s median income you may still be able to file for Chapter 7 but you will need to complete the entire “means test.”

Do you have to appear in court?

For most Chapter 7 cases you will not need to attend a formal court hearing. Although within 20-40 days of filing your case you will be scheduled for a meeting of creditors, which is known as a “341 meeting”. Our office will prepare you for the 341 meeting and attend the meeting with you. At the 341 meeting the U.S. Trustee will place you under oath and may ask you questions regarding the statements you made in your Chapter 7 Bankruptcy application.
Creditors may also attend this meeting and ask you questions; however most creditors do not attend this meeting.

If I previously received a Chapter 7 discharge can I file for a second Chapter 7 Bankruptcy?

Your case will be dismissed if you received a Chapter 7 discharge within the last eight years. Additionally, if within the last 180 days, you filed a prior bankruptcy petition, and it was dismissed because you did not appear before the court or follow the court orders, you cannot file under Chapter 7.

Can I apply for Chapter 13 Bankruptcy?

If you do not qualify for Chapter 7 under the means test, Chapter 13 is another Bankruptcy option. In contrast to Chapter 7, in Chapter 13 you would make payments to the creditor (via the trustee), and you usually would be able to keep most of your property.