The Benefits of Chapter 7 Bankruptcy

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Filing for Chapter 7 bankruptcy can help free you of large amounts of debt. It can be extremely beneficial if done right and with the help of a Los Angeles bankruptcy attorney. Unlike Chapter 13 bankruptcy, it does not require a court-approved repayment plan. So, if you are dealing with high credit card debt or medical bills, and the court approves your filing for Chapter 7 bankruptcy, the following benefits can include:

  • A Discharge of All Unsecured Debt – The court will enforce an automatic stay that prevents creditors and collectors from making phone calls, garnishing wages, or otherwise pursuing repayment from you. Credit card balances and other unsecured debts, those not attached to any collateral, are discharged and you no longer have to pay them. You essentially get a fresh start that can help you get back on your financial feet.
  • An Efficient Process – In as little as 3 to 5 months, you may complete the bankruptcy filing process, including your consultation, attorney meetings, credit counseling, attorney/trustee meetings, and discharge notification. Dealing with lots of debt is stressful. With Chapter 7 bankruptcy, debt relief in a relatively short amount of time is possible; in some cases, the discharge order may be issued 60 to 90 days after you file.

OakTree Law can assist with Chapter 7 bankruptcy filings. In addition, we offer estate planning, real estate, and foreclosure services.

You can call us directly at 562-219-2979 now.

Receive Help from a Los Angeles Chapter 7 Bankruptcy Attorney

Our Los Angeles and Orange County bankruptcy attorneys can help determine if you qualify for Chapter 7 bankruptcy or evaluate other possible solutions. Contact us today for a free evaluation and our attorneys will help you decide on the best financial choices.

Although filing for bankruptcy lowers your credit score, you can start rebuilding your credit after your debts are discharged. Thereโ€™s no set time for improving your credit. You can start qualifying for loans and applying for credit cards, and it may not take that long to start seeing increases in your credit score. A bankruptcy remains on your credit report for 10 years. But if you are responsible, you can qualify for high-interest loans to prove your financial responsibility.

  • Future Income Is Not Affected – A Chapter 7 bankruptcy estate does not typically include property acquired before, during, or after a filing, unless it is acquired within 180 days of a bankruptcy filing. Inherited property or property acquired following a divorce or settlement agreement is included in this rule. Death benefits and life insurance policy proceeds are as well.
  • The Debt Amount Is Unlimited – There is no debt limit with Chapter 7 bankruptcy. This differs from Chapter 13, which sets limits on secured or unsecured debt. Exceeding these can mean you are ineligible to file. On the other hand, Chapter 7 will eliminate all debt, no matter how much it is, if approved by the court.
  • You Keep Your Assets – While eliminating your debt, you can keep assets such as your vehicle, home, and expensive jewelry. You can, therefore, maintain your quality of life. At the same time, you can be free of the pressures associated with large amounts of debt.
  • Court Appearances Are Usually Not Required – Most Chapter 7 bankruptcy cases do not require a court appearance or a meeting with a bankruptcy judge. However, you do need to meet with your bankruptcy trustee. This aspect saves time and eliminates some of the stress of a bankruptcy filing.

OakTree Law can assist with Chapter 7 bankruptcy filings. In addition, we offer estate planning, real estate, and foreclosure services.

You can call us directly at 562-219-2979 now.