Chapter 7, also known as a “liquidation” is intended for debtors who have no ability to pay any of their unsecured debts on a monthly basis. The point of bankruptcy in general is to obtain a discharge of debt, meaning the you will never have to pay that debt, giving you a fresh financial start. Although some debts are not dischargeable, the majority of debts can be discharged. The “discharge” is among the most powerful remedies available under the law.
From the moment you file the petition the typical Chapter 7 case lasts approximately 90-120 days. So this means in as little as three months you can have a fresh start and move on with your life.
Keep Your Exempt Property
In California, a debtor can elect from one of two categories of exemptions, depending on the type of property owned and the amount of equity that exists. Let me help you determine which category is better for you. If you qualify, you can keep certain exempt property such as:
- Home Furnishings,
- Social Security and Disability Benefits,
- 401ks, IRAs
- Pensions, and other Qualified Retirement Plans,
- Tools of the Trade (Business),
- Alimony and Child Support, and more.