With consumers suffering across the county from overwhelming debt, foreclosure and rising taxes, many people are checking into filing chapter seven bankruptcy. As a chapter seven bankruptcy attorney, I can tell you I see every day the tremendous relief and peace that chapter seven bankruptcy brings to families. The overwhelming burden of debt can be a terrible stress in a person’s life affecting every aspect of personal and professional relationships, a stress that is often-times totally unnecessary and curable with some sound financial and legal advice.
What is Chapter Seven Bankruptcy?
Chapter seven bankruptcy is a tool available to consumers to allow them to “discharge” all qualifying debts, this typically includes credit cards, medical bills, collections, lawsuits, and most other types of personal unsecured loans. Chapter 7 bankruptcy is a way for consumers to get a debt free “fresh start” and move on to the more positive things in life. Any monies earned after the filing of a chapter seven bankruptcy are considered “post-petition” and not part of the bankruptcy. The idea behind chapter seven bankruptcy is to give people a chance to just start over without the burden of debt.
Chapter Seven Bankruptcy and Your House and Mortgage
Generally, chapter seven bankruptcy does not affect your mortgage or house. Unless there is a large amount of equity (at least $100,000 in California), the bankruptcy trustee will generally not be interested in the house, so long as the debtor lives in the house. Since most consumers have less than $100,000 in equity in their house, this doesn’t come up very often. The other issue that comes up from time to time, is a borrower who’s behind on payments. Chapter 7 bankruptcy does not really change this situation, if an arrangement can be made with the lender to catch up payments or modify the loan, bankruptcy won’t stand in the way.
Chapter Seven Bankruptcy Attorneys | Orange County Bankruptcy Attorney
It is difficult to explain all aspects of chapter seven bankruptcy in a short overview, however, McFarlin LLP chapter seven bankruptcy attorneys are available to speak to you in more detail about your financial situation. Our bankruptcy attorneys represent clients in Riverside, Los Angeles, San Diego, Long Beach, Anaheim, Costa Mesa, Rancho Santa Margarita, Foothill Ranch, Tustin, Mission Viejo, and throughout California. We have office in Irvine or can speak to you on the phone about your situation at no initial charge. We would be more than happy to explain the whole process and analyze your situation for you answering all your questions. Call us today at (888) 728-0044.