Chapter 7 bankruptcy requires detailed planning
Chapter 7 bankruptcy is what most of us think of when we think about bankruptcy – even if we don’t know it. 72% of all bankruptcies filed are filed as a Chapter 7 bankruptcy. It’s also called the “fresh start” and alternatively “clean slate” bankruptcy. It is all of that.
Chapter 13 filings comprise about 25% of all bankruptcy cases filed. It used to be called a “wage-earner plan.” The person who filed the Chapter 13 had to have a pretty static monthly income. That way, s/he could maintain a consistent payment into the plan.
Chapter 7 is usually simpler, pretty much always faster and less expensive than a Chapter 13. There is much about this type bankruptcy that depends on how you “package” your financial situation. In order that gets to keep assets you are entitled to it is important that you have a bankruptcy lawyer that will dive deep into exactly your financial situation Understanding this completely requires a sit-down meeting between you and the attorney. During that meeting that attorney should be asking you many detailed questions. Questions about your cars, home, your childcare, insurance, and personal assets like jewelry. Now back to your education…
Chapter 7 bankruptcy cliff notes
A “fresh start” or “clean slate”, Chapter 7 is the simplest form of bankruptcy. It is designed to let people (and sometimes businesses) get out of debt without repaying any of the “unsecure” creditors. Chapter 7 also requires the person(s) filing go turn over to the bankruptcy trustee all “non-exempt” assets. But skilled planning with an experienced bankruptcy lawyer in San Diego can usually make sure to exempt the property. (i.e., the filer gets to keep the property.)
Chapter 7 bankruptcy is part art and part science
With Chapter 7 bankruptcy , the Court, not the creditors, decides whether any assets should be sold to pay creditors. There is both an art and a science to actually completing the documents to be filed in a Chapter 7. Much greater skill is needed to plan for minimum loss to the person filing. Ideally, Paul likes to present the client’s scenario to the Court and trustee as a No-brainer. “If my client can’t pay reasonable living expenses and have some money leftover, it’s pretty smooth sailing.”
Paul must file his clients’ Chapter 7 case in the right venue – physical location. That’s identified by where the client(s) have lived for the better part of the last 180 days. Not surprisingly, the process requires the person(s) filing to bare his / her / their financial soul to the court and the creditors. All income, assets, debts and creditors must be disclosed. Again, careful and skillful planning is essential!
If you are considering Chapter 7 it is important to get real attorney advice. So many people wait too long to get the advice that is a free bankruptcy consultation. A “fresh start planning session” with Paul Staley will give you the answers to the questions you have about bankruptcy, Chapter 7 or 13. Paul has practiced bankruptcy law in San Diego for the last 20 years serving people like you. In this meeting you and Paul will go over all your legal options and your financial situation. You will know at the end of the meeting what you need to do next, and how to go about it.