Chapter 7
The bankruptcy litigation attorneys of The Law Offices of Todd B. Becker would like to explain how filing Chapter 7 bankruptcy can relieve certain personal debts. While filing for bankruptcy can be an intimidating prospect, it is a legally and financially viable alternative to constant harassment from debt collectors.
Chapter 7 (“Straight”) Personal Bankruptcy
Chapter 7 liquidation is the process by which debtors wipe out or "discharge" many of their debts. Chapter 7 is also known as "straight" personal bankruptcy. Chapter 7 bankruptcy in Riverside, Los Angles, and Long Beach are appropriate for those individuals facing extreme debt who may not have the source of income to repay them. A person’s non-exempt assets are sold and used to repay the debts. Any debts not covered by the sale are generally discharged, with some exceptions.
Discharge of Indebtedness
Discharge of indebtedness is the process by which a Chapter 7 debtor eliminates a debt during bankruptcy proceedings. A creditor or lender cannot collect a debt that has been discharged. The debtor is freed from his financial obligation.
However, not all types of debts can be liquidated in a bankruptcy proceeding. For example, a Chapter 7 debtor, even though he or she liquidates his or her debts, generally cannot discharge child support payments, taxes, or student loan payments.
Generally, most unsecured debt is dischargeable in Chapter 7 “straight” bankruptcy. A Chapter 7 debtor is usually granted relief from having to pay the following types of debts:
- Unsecured or personal loans
- Medical and dental bills
- Court ordered judgments
- Repossession deficiencies
- Claims in automobile accident or negligence cases
Depending on the circumstances, a debtor may be granted a discharge of the following types of debt:
- Divorce property settlements
- Debts incurred by dishonesty, fraud, or concealment
- Amounts received by embezzlement
- Judgments due for intentional or willful torts
- Some taxes, including some "old" income taxes
- Some student loans, but only in very limited "undue hardship" situations
- Balances due on credit cards, except purchases made with the intent to file bankruptcy
Seek Experienced Legal Personal Bankruptcy Assistance
If you find yourself in a difficult personal financial situation, it is important to hire an experienced legal team that truly cares about your case and wants to assist you. Contact the attorneys at The Law Offices of Todd B. Becker - we have extensive experience in Riverside, Long Beach, and Los Angles Chapter 7 and other bankruptcy alternatives.
