Should I File Chapter 7?

If you are at the point where you need to get a fresh start on your credit, you may be asking yourself, “should I file Chapter 7?”  In many cases, this type of straight bankruptcy case will be the preferred remedy recommended your lawyer because it helps you quickly get out of debt and obtain immediate debt relief.  From the moment that your lawyer files your case, your case will be completed and you will obtain a discharge in about 90 days.  This assumes that your case is filed by an experienced bankruptcy lawyer who is capable of ensuring that your filing will be successful.  Novice practitioners often are unable to close the case within 90 days and sometimes the case may go on for years while a trustee liquidates your assets.  But if you retain experienced bankruptcy counsel, you can be safely assured that your filing will go smoothly.

Should I File for Chapter 7 Bankruptcy in San Diego?

Chapter 7 bankruptcy will usually be recommended by your bankruptcy lawyer when you need to get rid of unsecured debts.  Common types of unsecured debts that are eliminated in a Chapter 7 case include credit cards, medical bills, and judgments.  Filing for Chapter 7 bankruptcy in San Diego can help you expeditiously eliminate credit card debt and other unsecured debt, so you can have a fresh start.

Benefits

Among the several important benefits of bankruptcy, perhaps the main and most important benefit of Chapter 7 is that you can eliminate your credit cards, your medical bills, and any judgments, and most other types of unsecured debts, so that you can start with a clean slate.  Another important, and often overlooked benefit is the ability to lower car loan payments by buying back your car for its value through the redemption process.  Few lawyers fully understand this process and few lawyers use the redemption process.  But in many cases, it can be a very effective tool for reducing your car loan payments.  Redemption allows you to purchase your car for its value, instead of paying off the current loan balance.  If you don’t have the money to repurchase your car, there are companies that will give you a loan for that purpose.  By essentially refinancing a much lower car balance, your payments can be substantially lowered.  If the value of your car is substantially less than the outstanding loan balance, then redemption can be huge benefit and definitely is an option you should consider and discuss with your attorney.

Protections

The main protection of Chapter 7 is that upon the filing of your case an automatic bankruptcy stay goes into effect that will stop phone calls from harassing creditors and debt collectors.  Foreclosure is also stopped temporarily, but to permanently stop a foreclosure, you would need to file a Chapter 13 case.

Credit Card Bankruptcy

Chapter 7 is frequently referred to as a credit card bankruptcy, since one of the main reasons that people file under this Chapter is to eliminate your credit card debt.  If your credit card debt is out of control, you may want to consult with a bankruptcy attorney to see if a credit card bankruptcy is the best solution to help you get debt relief.

Talk to a Lawyer

A lawyer that specializes in bankruptcy can determine if filing under this Chapter would be most beneficial to you in light of your specific needs.  If you are suffering from unmanageable credit card debt, medical bills, judgment debt, or other types of unsecured debts, talk to a Chapter 7 lawyer in San Diego to see if you should file under this Chapter.

This entry was posted in Chapter 7.


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