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Chapter 7 Bankruptcy

Redding, California, Chapter 7 Bankruptcy Attorney

In Chapter 7 bankruptcy, unsecured debt, such as credit card debt, is discharged. Chapter 7 bankruptcy is known as debt liquidation, because while your unsecured debt is discharged, you will have to decide whether you want to keep your secured assets and pay for them or return them to the seller. Depending on your financial situation, Chapter 7 bankruptcy may be the right option for you. At the law office of Bonnie Baker, Attorney at Law, we work closely with clients to identify a legal solution suited to each individual's needs.

Are you interested in speaking with an attorney regarding your bankruptcy options? Do you want to know if Chapter 7 bankruptcy is an option for you? Contact our firm today to arrange your free 90 minute consultation.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a reasonable solution for most debtors who find that they are unable to pay their debts with the income they are receiving and desire a "fresh start". You will not lose all of your assets. In California, you may elect one of two sets of exemptions which allow you to keep items listed in the exemptions. The amount of value that you can protect for each asset is included in the exemption. California has adopted a specific set for this state's residents as well as the set of federal exemptions. Each exemption set has numerous items but California or state based exemption is distinguished from the Federally based set of exemptions also adopted in California by its large homestead exemption. Individual Californians who own and reside in their residential property can claim $55,000 as a homestead exemption and with dependents, $75,000 equity. Older residents and disabled parties can claim $150,000 equity.

Cash proceeds from the sale of your residence may also be protected by the homestead exemption if you comply with certain requirements, such as timely reinvestment in real property. Homestead exemptions are not a guarantee of cash recovery from the debtor since currently homes that are sold in foreclosure may not sell for an amount that provides the debtor with any of their "equity" since homes sold in a "distressed" market may only be purchased by the lender for the amount of their lein. In the current market, the lender may be the only party at the sale. IRAs, vehicles, tools of the trade, etc. are protected as well as many other categories of assets. To confirm that 100% of the value of your asset is protected, check the exemption amounts protected in California. Bonnie Baker would be glad to assist you in obtaining a copy of the list of exemptions or one may review them under California Code of Civil Procedure, Sections, 703 and 704.

It is important to evaluate your options when determining which set of exemptions will be the most benefical for you by consulting with a professional. If you are separated from your spouse, additional considerations are involved including whether your spouse will also file bankruptcy prior to your discharge and whether your estranged spouse will sign a waiver for your petition filing since your spouse must use the same set of exemptions as you have chosen if you were not divorced.

Chapter 7 bankruptcy can be a viable form of debt discharge for consumers. However, not all debts can be discharged in a Chapter 7 bankruptcy. Examples of debts that cannot be discharged in bankruptcy include:

  • Alimony and child support
  • Some taxes
  • Criminal restitution 

To arrange your free 90 minute consultation with Bonnie Baker, contact our firm today.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

1650 Oregon Street
Suite 209
Redding, CA 96001

Phone 530-241-5421
Fax 530-241-7138
Toll Free 1-877-301-4012

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