San Diego, CA -- (SBWIRE) -- 07/09/2012 -- A media representative for the Bankruptcy Law Center today announced the firm is now accepting California Chapter 7 Bankruptcy cases. Chapter 7 is also known in legal circles as ‘liquidation’ or ‘straight bankruptcy’ and it is one of the simplest forms of bankruptcy. It is available to married couples, individuals and corporations or partnerships.
In a Chapter 7 Bankruptcy case the court appoints a trustee who is asked to collect and sell the consumer’s non-exempt assets and distribute the money which is collected to the creditors. The consumer is able to keep all property which is labeled as exempt by the law.
What is exempt property? Exempt property is always determined by each individual state and federal guidelines. The federal guidelines remain constant throughout the country but each state has created its own list of which assets can be considered exempt for a Chapter 7 Bankruptcy filing.
“When my wife became disabled we almost lost our home. She made more money than I did and we were living in a home that costs more than I could pay for on my salary. We filed for Chapter 7 and we were not only able to keep our home out attorney helped us lower our payments so I could afford the payments on my salary.” – Timothy Axelrod
In most states exempt assets may consist of real estate property such as a primary residence, trade or professional tools and books which the consumer needs to perform his or her work, and un-matured life insurance contracts. The court will also exempt social security benefits, veteran's benefits, disability payments, illness or unemployment benefits as well as proceeds from a judgment which is paid in-full or installments.
Most of the Chapter 7 cases which are filed are considered ‘no asset’ cases which means the consumer has no ‘non-exempt’ property which the court can obtain money from. In other words, there is nothing for the trustee of the court to sell unless he or she can prove otherwise.
About The San Diego Bankruptcy Law Center
The San Diego Bankruptcy Law Center works with clients who face many problems: crushing credit card debt with high interest rates up to 34%, unemployment or substantial decrease in income, overwhelming medical bills, home foreclosures, adjusting interest rates on their homes, and struggling or failed small businesses.