1. You were laid off due to the Coronavirus shut-down.

2. You lost your job or business opportunity.

3. You were sick, disabled, or hospitalized even for a short time.

4. Hospital and medical bills are through the roof.

5. You are working but your debts keep piling on.

6. Credit card interest rates are ridiculously high and are killing you.

7. Your monthly payments overwhelm you.

8. You cannot curb your spending habits & get thrills receiving packages.

9. You have tried debt-consolidation companies but they are a rip-off.

10. You want to pay off your debts but why sacrifice for 3 years or more.

11. Taking care of your family’s needs comes first.

12. You do not know how you got to be financially upside-down.

13. You were trying to keep up with the “Joneses” but they moved on.

14. You were trying to keep up with the “Joneses” but you moved on.

15. You are stressed out most of the time.

16. Your life has become complicated with all your possessions.

17. You want a simpler way to live and to enjoy life.

18. You lost track of your priorities in life and want to smile more often.

19. ________________________________________________(your reason).

20. There is no other way out for you and you want a start over.

The Chapter 7 Process (Simple & Straightforward)

1. Free Consultation
We review your financial situation and eligibility.

2. Case Preparation
We gather documents and prepare your filing accurately.

3. Filing & Automatic Stay
Collection activity must stop immediately.

4. Discharge of Debt
Qualifying debt is eliminated, typically within a few months.

Frequently Asked Questions About Chapter 7 Bankruptcy

1. Do I need to file bankruptcy?

Answer: When you are overwhelmed with debts. When you are getting constant annoying calls from collectors. When your wages are garnished. When Creditors don’t want to work with you on a repayment plan. When you can’t construct a budget that allows you a minimum lifestyle while paying off your creditors in a year or two. When all you are doing is paying the minimum on your credit cards while interest rates are at 29.99% and you lose hope of paying off your debt. When you lose your job or are temporarily disabled from work but your debt keeps piling on.

2. What does filing bankruptcy do for me?

Answer: Once you file bankruptcy there is immediate relief through an “automatic stay” issued by the court that puts a stop on all collection attempts by creditors. It freezes all your debts at the point of filing bankruptcy.

3. What happens to my debts?

Answer: Once you file for bankruptcy protection, a Trustee is appointed to administer your estate (all your debts and non-exempt assets) so that all creditors would then have to go through the Trustee and/or bankruptcy court if they wish to pursue collection from you.

4. Are all debts covered in my bankruptcy petition?

Answer: You must include all your debts and assets but not all debts are dischargeable in bankruptcy proceedings. Generally, these categories of debts continue to be an obligation: taxes owed that are less than 3 years prior to the date of filing; employment taxes; spousal and child support; student loans; fraudulent transactions; court ordered restitution; and secured loans, if you want to keep the asset, for example, your car or home.

5. What type of bankruptcies are there?

Answer: For individuals there are generally two types – Chapter 7 or 13. Under a Chapter 7 bankruptcy, if you are eligible under the means test, then all your debts would be discharged or forgiven. Under a Chapter 13 bankruptcy, a payment plan is drawn up and the trustee takes over your finances with minimum allowances for living expenses. This may be a 3 or 5 year plan and after all payments are made under the plan then your debts get discharged.

6. What is included in my bankruptcy estate?

Answer: all your non-exempt assets and all you debts. Non-exempt assets are allowances made for the debtor such as household furniture, personal items such as clothing, kitchenware and other items that are not of high value. For example, if you own a car outright then there is a general allowance of $3,325. If your car is worth more than any amount above that will have to be negotiated with the Trustee based on market value, car condition etc. All unsecured debts, credit card debts, medical care, are generally dischargeable while debts that are secured, such as car and home loans, you have the option to continue with your use and ownership if you continue to make payment and sign a reaffirmation agreement, otherwise, you can turn in your car or home and walk away from your debt.

7. What if I am married?

Answer: In community property states (CA, NV) the bankruptcy estate includes all community debts and assets of the spouses.

8. What if I own a business?

Answer: If you are a sole proprietor of a business then the assets and debts of the business are included and the Trustee may take possession of your equipment and machinery, accounts receivable, inventory, if any, but if your business is a service business, then generally, you would be allowed to continue to operate it. If your business was incorporated then the business has to file its own bankruptcy petition to close out all debts but, if you guaranteed any business loans then you remain on the hook to the creditor.

9. What happens after a bankruptcy discharge?

Answer: You do not have to pay any debt that has been discharged. You will start a new debt free life or a life with limited debts and be able to breathe easily. But you will be smarter as you will not let your discretionary spending get out of control again.

10. How do I qualify for Chapter 7 in California?

Answer: Qualification is based on income, expenses, and the Chapter 7 means test. We review this during your consultation.

11. How much does Chapter 7 bankruptcy cost?

Answer: Costs vary depending on complexity. We explain all fees clearly before proceeding.

12. How fast does Chapter 7 stop creditor calls?

Answer: Immediately upon filing due to the automatic stay.

13. Can Chapter 7 stop wage garnishment?

Answer: Yes. In most cases, garnishments must stop as soon as the case is filed.

14. How long does Chapter 7 stay on my credit report?

Answer: Typically up to 10 years, but many clients begin rebuilding credit much sooner.

1. Identify the type of debt you have as either “Secured” or “Unsecured”.

(a) Secured Debts: These are generally car loans, home loans or mortgages, loans secured by an asset (collateral) or Judgments against you in which the creditor is trying to garnish your wages, obtained a writ and froze your bank account, or filed an Abstract and now has a lien on your home or property.

(b) Unsecured Debts: These are generally credit card charges, hospital or medical bills, state or federal taxes owing for more than 3 years.

* [Student loans, family support, court fines, and recent tax obligations are not discharged.]

** [Credit card charges or loans obtained within 90 days before filing bankruptcy are not discharged so don’t go crazy and maximize your credit cards or cashing them out.]

*** [Transfers made within four years that were not for value (not sold in a normal or customary way) or transfers to hide assets from creditors are not discharged. A common example is quitclaiming your home to your brother, sister or friend to hide it from a creditor.]

2. Identify your Assets:

(a) Do you own a home in which the equity is more than $75,000 for an individual, $100,000 for a married couple, $175,000 for elderly or disabled. If you do then:

(i) perhaps you should not file chapter 7 but a chapter 13 may work for you.
(ii) find out what your equity is and accept the fact that we may need to negotiate a pay-off amount with the Trustee.
(iii) sell your home and pay off your creditors.
(iv) sell your home and have the creditors chase you down.

(b) If you have your own business and wish to continue to operate it then, under some circumstances you may be able to continue to do so (accountants, handymen, consultants, are an example, the list is vast) but if your business has inventory, equipment, or other valuable assets such as account receivables, list of customers, etc. then you should consider another route to take to relieve you from your debt obligations.

(c) If you have a savings account, investment account other than a retirement account or 401K plan, valuable assets such as an art or gold collection then you may have to give them or choose another route.

3. Identify your Earnings:

This is easy. What is your salary? How much money have you made during the past 12 months. There is a threshold amount that cannot be exceeded in order to be eligible to file for Chapter 7 Bankruptcy relief. Obviously, it is different for an individual, married couples, and or individuals or married couples with children and dependents. Generally, for an individual the amount if $ __________.