What is ‘secured’ debt?

What is ‘secured’ debt?

This entry is part 8 of 10 in the series Chapter 7 FAQsA “secured” debt is a debt where you have pledged property (also known as “collateral”) to ensure your payment of the debt. In other words, if you are unable to pay the debt, the lender can take the collateral and...
What are Exempt Assets?

What are Exempt Assets?

This entry is part 7 of 10 in the series Chapter 7 FAQsExempt assets are assets the person filing for bankruptcy can shield from creditors and the bankruptcy estate. In other words, they are untouchable assets and yours to keep post-bankruptcy. In California,...
What is the Chapter 7 Means Test?

What is the Chapter 7 Means Test?

This entry is part 6 of 10 in the series Chapter 7 FAQsThe Chapter 7 Means Test is a qualifying test that a debtor must pass to be eligible to file a Chapter 7 bankruptcy. Most Chapter 7 debtors pass and are eligible for Chapter 7 relief. Note that there is a similar...
What Does the Automatic Stay Stop?

What Does the Automatic Stay Stop?

This entry is part 4 of 10 in the series Chapter 7 FAQsGenerally speaking, the automatic stay stops foreclosures, repossessions, lawsuits, wage garnishments, and tax levies. It does not stop criminal proceedings or legal actions against you for support (such as child...
What is the Bankruptcy Automatic Stay?

What is the Bankruptcy Automatic Stay?

This entry is part 3 of 10 in the series Chapter 7 FAQsThe bankruptcy automatic stay is one of the first protections offered to those who file for bankruptcy. The automatic stay takes effect as soon as the initial paperwork in a bankruptcy case has been filed. It is...