If you live in California, you may be one of the large numbers of people who have recently lost their job or taken a significant loss in pay. You may have even considered filing a Chapter 7 bankruptcy. The significance of a Chapter 7 bankruptcy on your credit though is extremely great. You may not realize it, but people who file a Chapter 7 bankruptcy will have a record of it on their file up to 10 years. This has a significantly large impact on how creditors view you. You might find like so many others though, that you have no other options.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is one of 3 kinds of bankruptcy that can be filed in the state of California. Bankruptcy is declared when the person or business suddenly or over a period of time can no longer pay their debts or loans owed to creditors and they start a process with the courts to discharge or rid their credit of the debt. In Chapter 7, unlike other forms available, the process starts in the court by the debtor filling out a form. In the form, the debtor will include the debt that is owed along with current income and other financial details that go into great depth and complexity. The debtor also includes a list of everything they own when filling out the forms. This will be used later to determine what they will be allowed to keep and what will be auctioned off for the creditors.
In Chapter 7 bankruptcy, you do not pay anything back unless it is related to any official or secured loan. After the forms are filed, you will be contacted by the court and a trustee will be arranged to work with your creditors. The trustee will accompany you to a meeting with your creditors where you will discuss the debt that is owed and the creditors will have the opportunity to disagree with any discharges. Once everything is said and done, a paper is signed that relieves you of all debt and any items you own will then be removed from your home. The trustee will then sell your items and pay the money received to your creditors. A Sacramento resident can file a Chapter 7 bankruptcy one time every Six years.
If you are having financial hardship and are considering filling for bankruptcy, contact us by calling (916) 971-8880 for a FREE confidential bankruptcy consultation.