San Bernardino Chapter 7 Bankruptcy

Most often referred to as “liquidation” bankruptcy, Chapter 7 bankruptcy involves giving control of your estate to a trustee, who then has the right to sell, or liquidate, your nonexempt property in order to pay off as many of your creditors as possible. The new San Bernardino bankruptcy laws enacted in the past few years place strict requirements on who is allowed to file for Chapter 7 bankruptcy. In many instances, if you qualify to file for Chapter 7, it is highly likely that you will be able to keep the majority of your possessions. In some instances, you may even be able to keep all of your property, provided that it falls within exemption guidelines, or is not profitable for the trustee to sell.

If your income falls within specified guidelines, and you do not have the disposable income available to repay your creditors, you will likely be approved for a Chapter 7 bankruptcy. However, there is a new prerequisite to filing – you must attend an approved credit counseling class before you file for bankruptcy, and have a certificate of completion. This class must be taken within 180 days of your San Bernardino bankruptcy filing. In some instances, individuals take the class and file for bankruptcy on the same day – this is not generally recommended, as it may cause some difficulties in getting your San Bernardino bankruptcy approved.

In many instances, the financial counseling will involve the creation of a repayment plan. You do not have to adhere to this repayment plan in a San Bernaridno Chapter 7 bankruptcy. In fact, you do not have to pay back any of the debts that are discharged under your San Bernardino bankruptcy. The exception to this is if you decide to “reaffirm” a debt during the bankruptcy process. This most often happens in the case of a secured loan, such as your car, where you agree to continue making the payments and the creditor agrees not to repossess the item.

Understanding the ins and outs of Chapter 7 bankruptcy is more difficult than in years past because of the new guidelines and requirements that have been put into place. A knowledgeable, experienced San Bernardino County Bankruptcy Lawyer will be able to provide you with extensive information that relates directly to your particular circumstances. This will allow you to make the best possible choice when it comes to filing for bankruptcy.

Our premier San Bernardino County Bankruptcy Law Firm has helped thousands of individuals get back on their feet and get a fresh start by having their debts discharged via bankruptcy. If you are in over your head in debt, and need a way out, call our firm. We will arrange for a free initial case evaluation to help you better understand your options and we will provide you with the advice you need to take full advantage of the bankruptcy laws of San Bernardino County. Don’t delay – the sooner you contact our offices, the sooner we can help you be free of debt and get back on track financially.