San Diego Chapter 7 Bankruptcy

There are many benefits to Chapter 7 bankruptcy when you are deeply in debt:

No Limit on Debt that Can be Wiped Out

• You can wipe out almost all debts - there is NO dollar limit! Credit card debt, payday loans, department store bills, payments on furniture, appliances, and electronics -- all gone after Chapter 7.
• There are some exceptions that can't be wiped out: most taxes, government fines, student loans, alimony and child support, and a few other debts stay on the books and you are still responsible for paying them.

Keep Most Belongings:

• You can KEEP most of your personal belongings. Most of your belongings will fall under the category of "exempt property," which cannot be sold to pay off creditors. There are dollar limits on how much of each type of item you can keep, but most people do not own enough expensive items to go over the limits.
• There are two different California systems that set the values on how much of each type of item you can keep - and you get to CHOOSE which system to follow! You can select whichever system lets you keep most of your belongings, and your bankruptcy attorney at Steigerwalt Law Firm can help you decide between them. For example, one system may be better for you if you have certain retirement benefits or a mobile home; the other can potentially give you a $22,000 exemption that you can use to keep something like a paid-off boat or car, jewelry, or other valuable items.

Homes and Cars

• Home: Depending on which California exemption system you choose, you can keep your home if your equity (the value left after the mortgage is subtracted) is below a certain value, but you must keep ALL mortgage payments current. "Home" includes a condo or a mobile home. Chapter 7 stops foreclosure temporarily, but not permanently. But by wiping out other bills, Chapter 7 leaves some clients with enough funds to catch up on mortgage payments.
• Car: You can also keep your car if your equity (the value left after the loan is subtracted) is below a certain value, as long as you keep ALL the payments current.
• Car repo stopped temporarily: Chapter 7 stops a car reposession for just a month or so, and not permanently. However, some of our clients have found that once their other debts are wiped out, they have enough money to catch up on past car payments and keep up on future payments, and they get to keep their car.

• Credit counseling: You must attend a credit-counseling course within 6 months before you file for Chapter 7.
• "Means test:"  Under the Chapter 7 "means test," your total last six months of income must be less than the "median" in your area. If it is not, you still may qualify if you have certain legally allowed expenses that reduce your income so that it is less than the median. This is complicated to calculate and is usually different for each person. Your attorney can figure this out for you.
• No recent bankruptcy discharge: You cannot have gotten a Chapter 7 bankruptcy discharge in the past 8 years, or a Chapter 13 discharge in the past 6 years.
• No recent bankruptcy dismissal: You cannot have had a bankruptcy filing dismissed in the last six months for violating a court order, making a fraudulent filing, or because you asked for the dismissal when a creditor asked for relief from the bankruptcy automatic stay so that it could repossess or foreclose.

If you do not qualify for Chapter 7 because you have too much income, you may still be eligible for Chapter 13. Chapter 13 may also a better choice for persons who want to keep their home or other possession that they would lose in Chapter 7.

• Qualifying & Choosing Exemption System. Your bankruptcy attorney reviews your finances to make sure you qualify for Chapter 7, helps choose the exemption system that will let you keep the most belongings, and prepares your bankruptcy petition. The bankruptcy petition includes paperwork that lists all your creditors and debts, and also lists everything you own and its approximate value. You must complete a financial management course, which your attorney can set up for you.
• Chapter 7 Bankruptcy Petition filed by your bankruptcy attorney, and court clerk advises creditors that Petition was filed. This stops creditors, lawsuits, and wage garnishments.
• Creditors' meeting held at the Bankruptcy Court, 20-30 days after the Petition is filed. You MUST attend this proceeding. Your creditors have the option to attend or not attend. This is called a "341 meeting" and typically lasts anywhere from 5 minutes to 30 minutes.
• The bankruptcy trustee sells any non-exempt items you own and uses the proceeds to pay your creditors. You keep your exempt items, up to the dollar limit.
• Unsecured creditors must all have filed their claims, by day 90 after the petition is filed.
• Your debts are wiped out 90-180 days after the petition is filed, except for the debts that cannot be discharged. As mentioned before, these include most taxes, alimony, child support, and student loans, and some other, less-common categories of debt.

We can offer you a free debt evaluation and advise you as to whether Chapter 7 bankruptcy, Chapter 13 bankruptcy, or another option would be a good option for you. Once you are ready and your bankruptcy fees are paid, we will file your Chapter 7 Bankruptcy Petition for you.

• San Diego Chapter 7 Bankruptcy Filing Fee: $299.00, paid to the Bankruptcy Court
• Steigerwalt Law Firm's bankruptcy attorney fee: varies, depending on how complicated your situation is - how many different creditors, types of debt, types of income, and so on. We offer:
     : A free consultation.
     : A reliable flat-fee quote tailored to your exact situation.
     : Affordable payment plans. We have found that once clients commit to filing Chapter 7 bankruptcy, they can stop paying their bills and can often pay all their attorney fees in a month or so. We will file your bankruptcy petition once all fees are paid.