If you’re in a tough financial situation, you may have heard that Chapter 7 bankruptcy can help. But what is Chapter 7 bankruptcy? Is it the right choice for you? How will it affect your financial future? How do you file Chapter 7?

These are all questions that you need to have answered before you consider filing. A Chapter 7 bankruptcy attorney can help answer these questions for you, giving you the knowledge you need to know how to best proceed in your unique financial situation.

California Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a method of canceling an individual’s unsecured debt. This form of bankruptcy can be a viable option for people who have become buried in debt for any number of reasons and are unable to reasonably repay it. If you’re being hounded by creditors, are at risk of losing your home, or don’t see any way out of your debts, a Chapter 7 bankruptcy lawyer may be able to help you regain your financial stability. Filing Chapter 7 automatically puts a stay on your unsecured debts. This means that creditors that you owe money to can no longer contact you regarding any of the unsecured debt that you owe (i.e. credit card payments or medical bills).

What is an Unsecured Debt?

Unsecured debts include credit card bills, unsecured loans, medical bills, broken leases, and other unpaid bills. After your Chapter 7 bankruptcy petition is submitted, creditors can no longer contact you. They will have to work through your attorney and the bankruptcy court to determine how, or even if, your debts will be repaid.

How Does the Chapter 7 Bankruptcy Process Work?

During a San Diego Chapter 7 bankruptcy proceeding, you or a bankruptcy lawyer who you hire to represent you will disclose your complete financial records. The court will determine how to distribute your assets among your creditors through a process called liquidation and then cancel any remaining unsecured debt. However, keep in mind that Chapter 7 cannot discharge certain types of debt including child support payments, alimony payments, and student loan payments.

A typical Chapter 7 California proceeding takes four months to complete from the time the petition is entered. Once the proceeding is over, your unsecured debts will be erased, your credit report will reflect that you filed for bankruptcy for a period of seven years, and you’ll be able to move forward with your life with a clean slate.

San Diego Chapter 7 Attorney

The goal of Chapter 7 bankruptcy is to get individuals back in a place of economic stability where they can regain their financial footing and start fresh without debts looming over them.

To learn more about the option of Chapter 7, schedule a one-hour free consultation with San Diego Chapter 7 bankruptcy attorney, Scott Orona. Mr. Orona has been involved in thousands of bankruptcy proceedings and provides clients with a personalized level of service as they go through the stressful process of filing for consumer bankruptcy in the state of California.

Call 619-306-7627 today to schedule your free case evaluation with Attorney Orona.