Chapter 7 bankruptcy is the most common form of bankruptcy protection, as it is available to all companies and most individuals and couples. After completing this program, you could benefit from the discharge of most of your debt. Although, this process can be complex. It is essential to fully understand what filing for Chapter 7 protection entails and what your role in the process will be.

A Los Angeles Chapter 7 bankruptcy lawyer could help guide you through this process. Whether you are an individual with personal debts or the owner of a company, a Chapter 7 bankruptcy petition could be the solution that you need. Get in touch with a skilled attorney for help with this process.

How Does Chapter 7 Bankruptcy Work?

A Chapter 7 bankruptcy can lead to an automatic stay against any ongoing or future collection efforts and a discharge of debt. As powerful as these benefits are, they do come at a price. A Chapter 7 bankruptcy petition empowers the court to appoint a trustee to seize some of the debtor’s assets and hold a sale. This sale raises cash to pay creditors.

It is important to note that petitioners can retain many assets. Certain types of property are exempt from liquidation. Additionally, parties may negotiate with creditors for an alternative to liquidation sales. A Los Angeles attorney could provide more information on the Chapter 7 bankruptcy process.

Starting a Debt Relief Petition in Los Angeles

Filing a petition for Chapter 7 bankruptcy protection can have an immediate and powerful effect. However, this protection is only possible if the filing party follows the legal guidelines for submitting a comprehensive application.

All parties, regardless of their status as an individual, couple, or company, must submit detailed financial data to the court. According to 11 United States Code § 521, this will include:

  • A list of creditors and the amount owed to each entity
  • A list of assets
  • An income statement
  • A list of current liabilities

Individuals and couples seeking protection must take an additional step. This involves completing an approved credit counseling course. These take place online over two sessions and teach people about the Chapter 7 process and how to avoid debt in the future.

Those who complete the course will receive a certificate of completion, which must accompany any request for bankruptcy protection. A seasoned lawyer could help Chapter 7 petitioners to obtain the information needed to submit an application for bankruptcy.

Call a Los Angeles Chapter 7 Bankruptcy Attorney to Learn More

When you are facing overwhelming debt, it can seem like there is no way out. High-interest payments and the threat of lawsuits can hinder your ability to earn an income and cause unnecessary stress.

Fortunately, nearly every person and company has the ability to seek debt relief through a Chapter 7 bankruptcy petition. A Los Angeles Chapter 7 bankruptcy lawyer could explain this process and work with you to gather and submit the necessary documentation. Contact us to let an attorney help you with your case.

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    Law Office of Terrence Fantauzzi

    Law Office of Terrence Fantauzzi
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