The holidays can be a financially stressful time of year for many people. Along with buying gifts for loved ones and friends often comes a financial burden. Some consumers overspend at holiday time and use their high-interest credit cards excessively, resulting in massive amounts of holiday debt. Even when this holiday spending is within your stretched budget, it does not take much in terms of unexpected events, such as reduced work hours, lay off, or car accident, to send you into an insurmountable debt situation.
Many of these individuals who accumulate significant consumer debt over a long period of time feel that they have no way out and nowhere to turn. Fortunately, however, help is available. Depending upon the type of debt you are faced with and the amount of debt you currently have, you may be eligible to discharge your debt by way of a Chapter 7 bankruptcy proceeding.
Chapter 7 bankruptcy is not right for everyone. However, it can be beneficial in the right circumstances and can allow certain individuals the opportunity to start their financial lives anew. If you are contemplating filing for Chapter 7 bankruptcy, it is extremely important that you first consult with a knowledgeable bankruptcy attorney.
The skilled California Chapter 7 bankruptcy attorneys at Miranda, Magden & Miranda, LLP can discuss your debts and financial situation with you and determine if filing for Chapter 7 bankruptcy is the right option for you. If you are eligible for Chapter 7 bankruptcy and you decide to file, we will make sure that you understand the entire process fully. We can also represent you at all bankruptcy proceedings that take place in court.
The Chapter 7 bankruptcy process is essentially a liquidation process. When you file for Chapter 7 bankruptcy, your non-exempt assets are sold – or liquidated. The sale proceeds, if any, are then used to satisfy the various debts you owe to creditors. If there are debts that remain, those debts may then be subject to discharge as part of the Chapter 7 bankruptcy process.
One of the main functions of a Chapter 7 bankruptcy lawyer in California is to help you retain certain assets and avoid having to sell them as part of the bankruptcy proceedings. Some items are considered ‘exempt’ from Chapter 7 bankruptcy and are not subject to sale. Those items include jewelry, clothing and other personal items, household goods, household furnishings, household appliances, motor vehicle equity, insurance policies, retirement plans, and income from a workers’ compensation or personal injury case, among other assets.
There are certain types of debts that are not subject to discharge by way of a Chapter 7 bankruptcy. Those types of non-dischargeable debt include, but are not limited to, student loan debt, restitution that has to be paid as part of a criminal case, certain types of tax debt, alimony debt, personal injury debt, and child/family support arrearages. A knowledgeable California bankruptcy attorney will be able to determine whether your particular debt is subject to discharge by way of a Chapter 7 bankruptcy proceeding.
Debts that accumulate during holiday time and unexpected events can lead to a significant amount of financial stress. If you are in significant debt and do not know where to turn, the experienced legal team at Miranda, Magden & Miranda, LLP, may be able to assist. For a legal consultation and case evaluation with an experienced California Chapter 7 bankruptcy lawyer, please contact us online today for more information.
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