Chapter 7 FAQs
Frequently Asked Questions about the Chapter 7 Bankruptcy Process
What is Chapter 7 Bankruptcy?
Chapter 7 is a type of bankruptcy that offers individuals a fresh financial start by discharging many unsecured debts (such as credit card debt, medical debt and more). Chapter 7 is sometimes referred to as the “liquidation” bankruptcy because, in theory, your bankruptcy trustee can liquidate or sell off to raise cash any of your non-exempt assets (assets that are not protected by California’s exemption statutes). Most people who qualify for Chapter 7 bankruptcy have few or no non-exempt assets, so liquidation is highly unlikely with proper bankruptcy planning and analysis. Learn more.
Can a Business File for Chapter 7?
What is the Bankruptcy Automatic Stay?
What does the automatic stay stop?
How Long Does it Take to File Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a relatively quick process. While a Chapter 13 repayment plan can last several years, Chapter 7 debtors generally get a discharge in about four months from the date of filing. Learn more.
What is the Chapter 7 Means Test?
What are Exempt Assets?
What is 'secured' debt?
Can I transfer or dispose of my possessions or property before I file bankruptcy?
What is a Chapter 7 discharge?
At the end of a Chapter 7 bankruptcy an individual can receive his or her discharge. A corporation will not receive a discharge. A successful Chapter 7 bankruptcy will result in the elimination of most common consumer debts such as medical bills and credit cards. Some types of debts are not discharged including student loans, recent tax debts, debts incurred by fraud, and family support claims. Learn more.