Chapter 7 Bankruptcy Attorney Carlsbad, San Diego.
Chapter 7 is known as “liquidation bankruptcy.” Chapter 7 is generally used by individuals who have an income that is below the median income for their state, and have minimal, if any, assets. Under Chapter 7, burdensome debt can be erased usually within 3 months and the debtor can keep his assets if they are below the amount allowed in his/her jurisdiction (called exemptions). If an individual files for Chapter 7 with assets above those allowed, the bankruptcy trustee will liquidate those additional assets to pay off as much of the debt as possible before discharging the balance.
In a Chapter 7 case, you file several forms with the bankruptcy court listing income and expenses, assets, debts and property transactions for the past year. A court-appointed individual, the bankruptcy trustee, is assigned to oversee your case. About a month after filing, you must attend a First Meeting of Creditors where the trustee reviews your forms and asks questions. Despite the name, creditors rarely attend. If you have any non-exempt property, the trustee will ask that you turn it over to him or her. The meeting normally lasts only a few minutes. If there are no challenges from creditors, approximately three months later, you receive a discharge order, which is a notice from the court that “all debts that qualified for discharge were discharged.” Then your case is over.