Breaking the Cycle Of Debt
Anyone who has struggled with money knows how difficult it is to break the cycle of debt. 2020 caused the biggest spike in unemployment since the Great Depression, and many Americans are now struggling to pay their bills.
Bankruptcy is a tool people can use to restructure their finances, but it is often misunderstood. There is sometimes a stigma around filing for bankruptcy, despite its usefulness and the fact that filing for bankruptcy is a perfectly legal tool to eliminate debt. The ability to discharge debt and avoid debtor’s prison was one of this country’s founding principles.
There are several different types of bankruptcy under the Bankruptcy Code, including Chapter 11 and Chapter 13.
Today, we’ll be discussing Chapter 7.
How Chapter 7 Bankruptcy Works
Chapter 7 is called a liquidation chapter because any nonexempt assets can be liquidated by a court appointed-trustee to repay your creditors. This rarely happens – around 95% of all chapter 7 cases filed do not have any assets which are not protected by state exemption laws.
Certain debts, such as credit card balances, business debt and medical bills, can be discharged through a chapter 7 bankruptcy. Unlike other forms of bankruptcy, you are not placed on a payment plan.
When a chapter 7 is filed, you are protected by an injunction called an automatic stay. Creditors can no longer contact you seeking repayment, nor can they:
- Foreclose on your house
- Have your utilities disconnected
- Repossess property
- Garnish your wages
Chapter 7 bankruptcy can be used by individuals, businesses, and sole proprietors to wipe away unsecured debts. Once these liabilities are removed, you will have the freedom to rebuild your credit.
Can I File for Bankruptcy on My Own?
While it is possible to file for bankruptcy without the help of a professional, it can be a tricky proposition. Even in cases that seem straightforward, complications can arise.
Some creditors may attempt to contact you after you have filed, or they may oppose your filing. It is also easy for laypeople to make mistakes in their filings, which can result in your discharge being denied or the trustee selling your property.
To protect your interests, it is recommended that you hire a certified specialist in bankruptcy.
Our Riverside office is run by attorney Frank X. Ruggier, an experienced litigator who is knowledgeable in both California and federal bankruptcy codes.
3 Benefits of Working with a Bankruptcy Attorney
There are many benefits to working with a Riverside bankruptcy attorney; here are 3 you may not have considered:
- You Won’t Be Lost in the Shuffle
Residents of Riverside and the Inland Empire know that in Southern California, many things tend to revolve around Los Angeles. You may even assume that using a law firm from “the city” will improve your case, but that isn’t always so.
Many metropolitan firms have dozens of lawyers. These lawyers take on numerous clients, and a team of paralegals will assist them as they prepare cases.
Unfortunately, clients sometimes feel lost in the shuffle of these giant practices. You may end-up speaking to a different person each time you call the office, or relying on paralegals for updates.
We are a boutique law firm. Our lawyers are intimately familiar with each case they take on; you will never have to speak to someone who is trying to learn about your case from their notes while they stall you on the phone.
- Familiarity With Local Trustees
A trustee is appointed to each Chapter 7 bankruptcy case. Your trustee is assigned based on the division in which your case is filed. We have a working relationship with many trustees from the Central District of California – Riverside Division panel. In fact, Larry D. Simons is a chapter 7 trustee assigned to the Riverside division.
Occasionally, disputes arise during the bankruptcy process. Your lawyers may need to negotiate – or even file litigation – in order to settle these matters. If your lawyer has a previous relationship with your trustee, it could help to resolve disputes more quickly.
- Assistance with Your Finances
Our work is not strictly limited to resolving your Chapter 7 bankruptcy. At the Law Offices of Larry Simons, we believe in setting our clients up for future success.
We will review your entire financial situation and make recommendations that can help you going forward. We will make suggestions that can keep you from falling back into debt.
A Firm You Can Trust, Right Here in Riverside
If you believe Chapter 7 bankruptcy could be right for your financial situation, contact the Law Offices of Larry Simons right now.
There is no charge to speak to a Certified Bankruptcy Specialist about your situation and you’ll have a better understanding of what can be done to becoming debt-free.
Don’t wait another minute to take control of your money and eliminate debt.
- Why Hire a Mission Hills Lawyer for Chapter 13 Bankruptcy? - April 1, 2021
- The Benefits of Hiring a Riverside Chapter 7 Bankruptcy Lawyer - March 30, 2021
- What Happens When You File Chapter 7 Bankruptcy in California? - January 28, 2021
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