Exploring Chapter 7 Bankruptcy as a Means of Debt Relief in Castroville
Individuals who accumulate large amounts of debt, including medical or credit card debt, often become frustrated quickly. Certain types of extended repayment plans can offer debtors some relief. However, when those types of plans are not enough, Chapter 7 bankruptcy proceedings may offer the necessary solution.
Bankruptcy proceedings can be extremely difficult to navigate on your own. If you are contemplating filing for Chapter 7 bankruptcy, the Castroville debt relief lawyers at Miranda, Magden & Miranda, LLP, may be able to assist. We can review all of your debts and financial circumstances with you and help you determine whether filing for Chapter 7 bankruptcy may be a viable solution. Reach out to us today to find out more about how we could assist you with your bankruptcy proceedings.
What is a Chapter 7 Bankruptcy Filing?
Chapter 7 bankruptcy proceedings are also commonly known as liquidation. A person may be eligible to file for Chapter 7 bankruptcy if he or she has accumulated a significant amount of debt. As part of these proceedings, certain property – known as nonexempt property – owned by the debtor is sold off in order to pay the debtor’s creditors. Once that has been done, the majority of the debtor’s outstanding obligations are discharged as part of the bankruptcy proceeding.
There are certain types of property and assets, known as exempt property, that the debtor may be able to keep and may not be sold as part of the bankruptcy proceedings. These types of exempt property often include personal assets, like household furnishings and appliances, clothing, jewelry, retirement plans, income from a personal injury or workers’ compensation case, insurance policies, equity in a motor vehicle, among other assets.
Debts that are Non-Dischargeable as Part of Chapter 7 Bankruptcy Proceedings
There are certain types of debt that are not dischargeable by way of a Chapter 7 bankruptcy proceeding. Those types of non-dischargeable debt include, but are not limited to, alimony debt, child support arrears, certain taxes, debts incurred from criminal restitution, student loan debt, and certain types of personal injury debt.
Role of an Attorney in a Chapter 7 Bankruptcy Proceeding
In a Chapter 7 bankruptcy proceeding, a lawyer’s role is extremely important. Given the complexity of Chapter 7 bankruptcy proceedings, a lawyer can explain the process to you step by step, ensuring that you fully understand everything that is going on. Your lawyer will also work to minimize the assets that have to be sold in order to pay off creditors and help you keep as many of those assets as possible.
Contact a Castroville Debt Relief Lawyer Today
Not all debtor-creditor situations require Chapter 7 bankruptcy. However, the process can allow a debtor the opportunity to discharge all of his or her remaining debts and the opportunity to start from scratch. The experienced legal team at Miranda, Magden & Miranda, LLP, can help you decide if a Chapter 7 bankruptcy is right for you. For a legal consultation or case evaluation with an experienced Castroville debt relief attorney, please contact us online today for more information.