Chapter 7 Bankruptcy in California

In a Chapter 7 bankruptcy, most DEBTS are ELIMINATED completely. This is called a “discharge.” Medical bills, credit cards, judgments from car accidents, personal loans and other unsecured loans can usually be eliminated or “discharged” in full. Once a debt is discharged, the creditor is forever prevented from taking any action to collect the debt. Having helped thousands of California through this process, Shah Peerally is an dedicated California Chapter 7 bankruptcy attorney.

Bankruptcy laws provide for certain exemptions. When evaluating exemptions, you must first determine how much “equity” you have in your property. Your “equity” is that part of the property that you own. If the value of your equity in your property is less than the exemption amount and your payments are current, an experienced Chapter 7 bankruptcy attorney will probably have no problem making arrangements for you to keep your property. If the value of your equity in your property is more than the exemption amount, you might be forced by the court to turn it over to the bankruptcy trustee who will sell it and use the money to pay on your debts.

Normally, as an dedicated California Chapter 7 bankruptcy attorney, WE WILL BE ABLE TO HELP YOU KEEP ALL OF YOUR PROPERTY. The rules are different for secured loans, such as homes, cars, boats, RVs etc. With some minor exceptions, you must either pay for the collateral that secures the loan or give it back to the creditor.

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