Chapter 7 Bankruptcy

Chula Vista Chapter 7 Lawyer

Discharge Qualifying Debt in Chula Vista - Quickly & Effectively

Drowning in bills you know that you cannot pay can be terrifying, especially as you start to receive calls from impatient creditors. A divorce, devastating accident, unexpected illness, or loss of income can all contribute to a situation where you cannot keep up on payments.

Before long, late fees, penalties, and interest together can compound your debt and make the problem seem insurmountable. While it is understandable to feel stressed, you may be able to retake control of your finances through filing for Chapter 7 bankruptcy.

Our Chula Vista Chapter 7 bankruptcy attorneys at The Sexton Law Firm are ready to help you defeat debt through filing for bankruptcy. Our attorneys have thorough knowledge of Chapter 7 bankruptcy laws and can guide you through each step of the process.

Our legal team can determine your eligibility, safeguard exempt assets from liquidation, and help you understand what debts you may be able to discharge. Our goal is to help you escape overwhelming debt and work toward a more financially sustainable future.

Do not let debt take over your life. Contact us online or call (619) 202-8976 to see if Chapter 7 bankruptcy makes sense for you.

How Does Chapter 7 Bankruptcy Work?

Chapter 7 bankruptcy is known as liquidation bankruptcy, which means that your nonexempt assets are sold off by the bankruptcy trustee to pay back your creditors.

The process can take between four to six months. If you do not have any assets to sell, your bankruptcy case can be closed usually four months after filing your petition. If creditors want to contest your discharge, this can prolong your chapter 7 case.

When liquidation has concluded, the bankruptcy court in Chula Vista, will generally allow you to discharge any remaining unsecured debts, which are debts that have no collateral. Once your qualifying debts are discharged, the case is complete and you will have no further debt obligations except for any debts that are not dischargeable.

What Debts Are Discharged in Chapter 7?

Most unsecured debts can be discharged in a Chapter 7 case. Unsecured debts include most types of debt that do not have collateral attached, including:

  • Credit card bills
  • Medical debt
  • Utility bills
  • Personal loans
  • Collection agency accounts
  • Business debts
  • Past due rent

What Types of Debts Cannot Be Discharged in Chapter 7?

Understand that you will not be able to discharge secured debts like your mortgage or vehicle loans. In addition, tax debt, alimony, child support, and some government fines and penalties do not qualify for discharge in bankruptcy.

However, the ability to discharge other types of debt can give you the financial flexibility to redirect funds toward these payments, allowing you to keep your home and car. Our lawyers can help you explore these options.

How Do I Qualify for Chapter 7 Bankruptcy?

Chapter 7 is for people with limited monthly income, so you will likely only qualify if you can meet the income limit requirements, which is called the Means Test. If you do not currently have any disposable income, you may likely be eligible for Chapter 7 bankruptcy.

To determine whether you are eligible for Chapter 7:

  • First, determine your average monthly income over the last 6 months.
  • Second, compare that number with the median average income for your household size in California.

If your income is less than the median average, you automatically qualify for Chapter 7 bankruptcy.

What If I Don't Pass the Means Test?

If your income meets or exceeds the median average, you still may qualify for Chapter 7 bankruptcy.

You will need to assess your current level of disposable income by subtracting necessary living expenses from your average monthly income, such as:

  • Food
  • Transportation
  • Some education costs
  • Taxes
  • Medical care

You can also safely count any secured payments, including payments on your rent, mortgage, or car loan.

Any funds you have left over after subtracting necessary expenses constitutes your disposable income. If you have too much disposable income, you will likely be asked to file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. Our legal team in Chula Vista can help assess your eligibility and ensure all qualifying expenses are deducted when determining your level of disposable income.

Can Chapter 7 Stop Foreclosure, Repossession & Creditor Harassment?

Once you file for Chapter 7 bankruptcy, you are protected under a court order called the “automatic stay.” This injunction immediately prevents creditors from communicating directly with you and freezes any collections actions. The automatic stay is a powerful feature of bankruptcy and can be used to stop foreclosures, end creditor harassment, and prevent vehicle repossessions. The order remains in effect until your bankruptcy filing has been completed.

With the automatic stay in place, a bankruptcy court will appoint a trustee to oversee your bankruptcy case in Chula Vista. They will meet with you and your legal representation to initiate the liquidation process.

What Assets Are Exempt in a Chapter 7?

You may have heard about liquidation, which involves the trustee selling – or liquidating – nonexempt property to help partially repay your debts. While this can sound scary, the reality is that a Chapter 7 bankruptcy is not meant to leave you without any property.

You are able to use a federal or state exemption schedule to protect certain types of assets from liquidation. Our Chula Vista chapter 7 bankruptcy attorneys can help you leverage these exemptions and minimize any liquidation impacts.

Using California exemptions, Chapter 7 bankruptcy filers can generally protect:

  • Your primary residence
  • A motor vehicle
  • 75% of your wages
  • Retirement benefits, including pensions
  • Public benefits, including unemployment payments
  • Insurance proceeds
  • Personal property, including jewelry, art, clothing, furniture, and other sentimental items

Every bankruptcy is different. Do not assume that exemptions will automatically save assets that are important to you: Always consult with an experienced Chula Vista bankruptcy lawyer before filing. Our legal team can evaluate your situation and walk you through what types of property you will be able to safeguard from liquidation.

Can I Keep Any Credit Cards If I File For Chapter 7?

The issuing banks will often close your credit card accounts when you file for Chapter 7 bankruptcy. This is due to the fact that credit card issuers will usually cancel your accounts, no matter how much money is owed, if they see bankruptcy filings as evidence of unstable finances.

There are certain exclusions, though. The credit card issuer can let you keep your card if it had no balance when you filed. Due to the fact that credit card companies have their own bankruptcy policies, this is not always guaranteed. Reaffirming a credit card debt, which is an agreement between you and the creditor to keep that debt out of your bankruptcy discharge, is another option that you may want to consider, but it can be quite risky financially and requires court approval.

Speaking with knowledgeable Chula Vista Chapter 7 lawyers, like those at our law firm, can help you better understand the subtleties of how credit cards are handled during bankruptcy. We can help you navigate the legal system and offer specialized counsel based on your unique situation. Our aim is to safeguard as much of your assets as we can while assisting you in a seamless Chapter 7 process.

We Can Help You Navigate Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy can be intimidating, especially if you are concerned about losing your home or other important assets to liquidation.

Our Chula Vista Chapter 7 bankruptcy lawyers at The Sexton Law Firm have helped countless individuals and their families leverage Chapter 7 bankruptcy’s many benefits. We can determine whether filing might make sense for you and work to minimize your estate’s exposure to liquidation.

Take the first step to conquering your debt by scheduling a consultation with our team. Call (619) 202-8976 or contact us online to get started today.

Commonly Asked Questions

How long does a Chapter 7 bankruptcy case take?

The process generally spans four to six months. If there are no assets to liquidate, your bankruptcy case can often be concluded around four months after submitting your petition. Should creditors decide to contest your discharge, this could lengthen the timeline of your Chapter 7 case.

Why Hire The Sexton Law Firm?

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Hear From Our Happy Clients

At The Sexton Law Firm, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

    “He allowed me to vent, responded accordingly, and return my text message as if we were friends.”
    Through this very difficult period in my life, I reached out to the Legal Aid Society and they assigned a Lawyer to assist me in filing for bankruptcy protection. Andrew Sexton took the time to speak with me on the phone, he walked me through the process with detailed emails explaining what I needed to do in order to make the process go smoothly. He allowed me to vent, responded accordingly, and return my text message as if we were friends. Everything was conducted electronically, and on the phone, we never met in person…. Amazing. I highly recommend this firm with handling your financial issues regarding Bankruptcy. Thanks, Mr. Sexton for your professionalism and your due diligence in regard to my case
    - Brian Powell
    “From the very beginning, they were professional and very efficient in dealing with my case.”
    I was in a car accident back in July and got rear-ended because some guy was rushing on his way to work, you would think the guy would want to save more time by not filling out a police report and dealing with lawyer stuff but I guess not. I went on Google and found the Sexton Law Firm. From the very beginning, they were professional and very efficient in dealing with my case. I had the pleasure of meeting the head honcho, James Sexton. He was very personable and reassuring in taking care of my case. My case was dealt within one year, he even helped me get the medical assistance I needed. The entire time the law firm sent out ongoing emails giving me updates and letting me know how long I would have to wait for a response from the other party.
    Everything worked out perfectly, In the event that I am ever in another accident, I would definitely hire this firm again to handle it. Do I recommend them? Yes I do!
    - Jen Miller
    “They gave me outstanding service!”
    Andrew and his staff at James Sexton law firm are very courteous and professional when handling my bankruptcy. I was a little nervous going into this but came out feeling unstressed. I was given a list of paperwork to submit and after doing so they responded quickly and efficiently to handle the situation. My bankruptcy was finalized within 3 months. They gave me outstanding Service! Andrew Sexton follows in his father's footsteps as a professional and competent attorney. Thank you, If I could I would give 6 stars for service!
    - Michael Harkiewicz
    “I would highly recommend this law firm for anyone needing help!”
    The Sexton Law Firm was very helpful during the entire process. Andrew was very helpful and knowledgeable. However, Asia was the most helpful. She answered all my questions and relieved my worries about the progress of my case. I would highly recommend this law firm for anyone needing help with bankruptcies.
    - Ginger Russ
    “His council was well received, and it was honest.”
    I was referred to Mr. Andrew Sexton at a time of great need, confusion, and embarrassment. His council was well received, and it was honest, offered clarity, and calmed four shoulders worth of concerns. I would recommend that your consideration for representation would be met with the same regard. Very grateful for his time, knowledge, and resources.
    - Chris Myers
    “A very personable and professional team.”
    Mr. James Sexton has a very personable and professional team. His case manager Juliana Alvarez and office manager Tania Contreras, are great!! I do not have enough adjectives to describe them. And as for Mr. Sexton, he listens to every word and is forward reaching in his direction with my case. Thank you all and big hugs at these holiday moments and be safe with this pandemic.
    - David Phelps
    “We got called in and were out in minutes! Sexton made the process so easy and stress-free!”
    I am very grateful for the Sexton Law Firm! Patient, professional, and quick! I needed to file bankruptcy and they reassured me countless times of the process, how easy it will be, everything will be okay, and that I am not a bad person for filing! When arriving at the courthouse, he explained what will happen and what to say. We got called in and were out in minutes! Sexton made the process so easy and stress-free!
    - Erika Peterson
    “Top level lawyers who know how to win a case for their clients!”

    The Sexton law firm represented me in a facility injury case. Their professionalism and handling of my case was A+. The case was rapidly handled and settled in record time. The staff and the lawyers at this firm always kept me abreast of my case and gave me many options to resolve my case. My case was resolved in record time. I am extremely happy with my settlement and I am glad that I chose this great law firm to represent me. This law firm are top level lawyers who know how to win a case for their clients. I highly recommend this law firm to anyone who needs a lawyer. This law firm gets Five Stars because they earned it in my case settlement result. This review is real and from the bottom of my heart I sincerely thank the Sexton Law Firm and it’s staff and I am very grateful and thank them again for their services in my case.

    - Ronnie Brooks