Chapter 7 Bankruptcy Los Angeles
This is commonly referred to as “Personal Bankruptcy” or “Bankruptcy Liquidation”
Chapter 7 Bankruptcy Los Angeles can be used by individuals or businesses, but accomplishes different things for each. Individuals can discharge their debts in a Chapter 7, but corporations can not.
In general, Chapter 7 is the least expensive and quickest bankruptcy.
It allows you to:
- Discharge your debts (those that are dischargeable) without doing any repayment.
- Remove certain judgment liens against property
- Takes a total of 4-5 months.
Some risks and problems with Chapter 7 are:
- While it is usually not an issue, in some cases your assets may be at risk, depending on their value and whether you have enough exemptions available to protect them.
- You may not be eligible for Chapter 7 if your income presently, or for the 6 months prior to filing is too high.
In Chapter 7 Bankruptcy Los Angeles you do not make any payments to your creditors, but the trade-off is that if you have assets with values beyond the exemption limits of the applicable state or federal law in your case, the Chapter 7 Trustee can sell those assets to pay your creditors.
A qualified bankruptcy attorney can determine which exemption laws apply and whether your assets would be at any risk of being sold.
Eligibility For Chapter 7 Bankruptcy
To be eligible for aid under chapter 7 of the Bankruptcy Code, the debtor could be an individual, a partnership, or even a business or other business entity. 1 1 U.S.C. §§ 101(4 1 ), 109(b).
Susceptible to the way evaluation described previously for private debtors, aid is available under chapter 7 irrespective of the volume of the borrower’s debts or whether the debtor is solvent or insolvent.
A person can’t file under chapter 7 or any other chapter, but if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of this courtroom, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recoup property upon which they hold liens.
Additionally, no person can be a debtor under chapter 7 or some other chapter of the Bankruptcy Code unless she or he has, over 180 days before filing, received credit counseling from an approved credit counseling agency either at an individual or group briefing. 1 1 U.S.C. §§ 109, 111.
There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to deliver the necessary counselling.
When your debt management program is developed throughout mandatory credit counseling, then it has to be filed with the court.The borrower doesn’t have any responsibility for discharged debts.
In a chapter 7 case, however, a release is only accessible to private debtors, as well as corporations or partnerships. 1 1 U.S.C. § 727(a)(1 ) ).Even though a single chapter 7 case usually ends in a release of debts, the right to a discharge isn’t absolute, and some kinds of debts aren’t discharged.
Furthermore, a bankruptcy discharge doesn’t extinguish a lien in your land.
Contact us or click the button below