Chapter 7 Bankruptcy Lawyer

Helping Clients Protect Assets & Get Out of Debt

If you are struggling to pay your bills or fear your home will be foreclosed, then filing for bankruptcy might be your solution for eliminating some or all of your debt. At SM Law Group, we are committed to using our extensive knowledge of the law to assist clients who are experiencing financial hardship.

Through Chapter 7 bankruptcy, also called liquidation bankruptcy, debtors can wipe out their debts. Our dedicated lawyers proudly serve clients throughout Los Angeles. We will gladly take the time to speak to you about the details of your case and review your finances so we can advise you of all your options under the law.

Advantages of a Chapter 7 Bankruptcy

If you qualify for Chapter 7, there are many benefits that come with pursuing this option, including:

• Quick and easy process – it can take 4 to 6 months to complete
• Halting creditor actions and lawsuits, including repossession and creditor harassment
• You can often enjoy a clean slate so you can start rebuilding your finances

Chapter 7 is a great way to resolve your debts and create a fresh start for your financial future.

What Debts Can Be Discharged in Chapter 7?

Most kinds of debt can be wiped out in a Chapter 7 bankruptcy, such as:

• Credit cards
• Medical bills
• Personal loans

However, debts like taxes, student loans, child support/alimony, and debt incurred through fraud can’t be discharged in Chapter 7.

Am I Eligible to File for Chapter 7?

When you file for Chapter 7 bankruptcy, the court will look at all your sources of income and expenses to determine if you are eligible for debt relief.

Through a procedure called the Means Test, the court will compare your expenses to average expenses of people in your area. If your income and expenses are average, you won’t qualify for this type of bankruptcy.

Can I Keep My Home If I File for Chapter 7?

If you have no equity and are current on your mortgage payments, then you’ll have no problem keeping your house after you file for Chapter 7. If you do have equity in your home, then California law allows you to protect a certain amount of equity in your home when you file for bankruptcy. The amount of equity you can protect varies on your age, as well as your marital and disability status.

• For example, let’s say a homeowner qualifies for the $75,000 exemption. If the house was worth $500,000 and had a $450,000 mortgage against it, that would leave $50,000 of equity in the home. Because the amount of equity is less than the $75,000 limit in this example, the homeowner would be able to file Chapter 7 bankruptcy and keep their house.

It is absolutely critical to speak to an experienced bankruptcy attorney before you file to see if your home and other assets can be protected. While most of the people we represent can keep their homes if they file Chapter 7, some have so much equity in their home that the home would be at risk if they file a Chapter 7. In this situation, filing for Chapter 13 bankruptcy is generally the best option for the homeowner.

Does Chapter 7 Stop Foreclosure?

Filing for Chapter 7 will delay a foreclosure, but only temporarily. The lender is unable to proceed with the foreclosure until it gets a court order from the bankruptcy court authorizing it to proceed, or until the bankruptcy case is closed.

Although Chapter 7 is obviously not a permanent solution, it can give a homeowner some temporary breathing room. Chapter 7 can also be very advantageous to a homeowner who wants to give up their home. Not only does Chapter 7 wipe out credit cards, but it also prevents a second mortgage lender from coming after a homeowner for a deficiency after a foreclosure.

Consult with Our Experienced Los Angeles Bankruptcy Lawyers

Are you considering whether bankruptcy is the right option for you and your family? Then contact our top-notch lawyers at SM Law Group so we can talk about your options under California’s bankruptcy laws. Our esteemed attorneys have assisted countless clients in the greater Los Angeles area rebuild their lives and shore up their financial future by helping them get out of debt. Although the Chapter 7 process may seem daunting, our knowledgeable attorneys will walk you through each phase of the process and advocate for your best interests.