(for Riverside/San Bernardino Counties)

Chapter 7

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About Chapter 7 Bankruptcy Attorney in Riverside CA

CHAPTER 7

In a Chapter 7 bankruptcy case you file a petition asking the court to discharge your debts. The basic idea is to wipe out (discharge) your debts in exchange for giving up any unexempt property. The exemptions for our jurisdiction are found in the California Code of Civil procedure (sections 703.010 – 704.995).

In most cases all of your property will be exempt (not able to be seized and sold by the trustee for the benefit of your creditors). The property that is not exempt can be sold by the trustee and the proceeds distributed to your creditors. If you want to keep the property that is unexempt you can pay the trustee the amount that you are over your exemptions and keep those items. With the new bankruptcy law the eligibility requirements to file a Chapter 7 bankruptcy are based on your income.
(click here for more info).

The limits and standards are from the IRS and USDOJ and the figures they allow are what we must use to see if you are eligible to file a Chapter 7 bankruptcy
(learn about eligability).

If you are over the initial threshholds you may still be able to file a Chapter 7 bankruptcy if your allowable living expenses exceed your monthly income
(national expense standards).

In a Chapter 7 bankruptcy if you are making payments on a mortgage or vehicle you can continue to do so and keep those items. If you are behind on your home or auto payments and you want to keep them a Chapter 7 is most likely not the right choice for you. A Chapter 7 does not eliminate the rights of the creditor of secured property to take away that property to cover the debt. It will not give you a chance to become current on those payments because a plan payment is not proposed to catch up on those late or missed payments in a Chapter 7 bankruptcy. If you are in this situation then maybe a Chapter 13 bankruptcy would be right for you.

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