• There is no minimum or maximum debt limit. A Debtor is barred from Chapter 13 bankruptcy if his or her debt exceeds $1,081,400 in secured debt and/or $360,475 in unsecured debt. Unlike Chapter 13 bankruptcy, Chapter 7 bankruptcy permits you to file for and have discharged any amount of debt. Note that not all debts are dischargeable (See section below: What debts are not discharged in a Chapter 7 bankruptcy?).
• Any unpaid balances that remain after your non-exempt assets have been distributed are discharged.
• You keep any wages you earn or property you acquire, except for inheritances (received within 6 months), after the bankruptcy filing date.
• Most cases are discharged and over in about 3 – 6 months.

• There is no minimum or maximum debt limit. A Debtor is barred from Chapter 13 bankruptcy if his or her debt exceeds $1,081,400 in secured debt and/or $360,475 in unsecured debt. Unlike Chapter 13 bankruptcy, Chapter 7 bankruptcy permits you to file for and have discharged any amount of debt. Note that not all debts are dischargeable (See section below: What debts are not discharged in a Chapter 7 bankruptcy?).
• Any unpaid balances that remain after your non-exempt assets have been distributed are discharged.
• You keep any wages you earn or property you acquire, except for inheritances (received within 6 months), after the bankruptcy filing date.
• Most cases are discharged and over in about 3 – 6 months.

• Your non-exempt property may be collected and sold by the Trustee.
• It only temporarily stops foreclosure.
• Anyone who cosigns a loan for you may be liable for the debt unless they file for bankruptcy protection.
• You can only file once every eight years.
• You cannot strip an unsecured second lien on your residence.
• You cannot make up arrearages (missed payments) on your home or vehicle.
• You cannot cram down (reduce to fair market value) on your car or reduce the interest rate.

These are only some of the disadvantages of Chapter 7 bankruptcy. Please call us to discuss your particular circumstances.

To qualify for relief under Chapter 7 bankruptcy of the Bankruptcy Code, the following applies:

• The debtor may be an individual, a partnership, or a corporation or other business entity.
• Subject to the Means Test, relief is available under Chapter 7 bankruptcy irrespective of the amount of the debts or whether the debtor is solvent or insolvent.
• An individual cannot file under Chapter 7 bankruptcy or any other chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.
• Must complete credit counseling and obtain a certificate.
• The debtor may not have received a discharge in a Chapter 7 bankruptcy in the previous eight years, or Chapter 13 bankruptcy in the previous four years.

The Debtor’s attorney will normally do the following things in a Chapter 7 consumer case:

• Analyze the amount and character of the debts owed by the Debtor to determine whether bankruptcy is the best remedy for the Debtor’s financial problems.
• Assist the Debtor in preparing his or her estate for bankruptcy, so that a minimum amount of property will later have to be turned over to the Trustee.
• Advise the Debtor in determining exempt and non-exempt property and debts that are dischargeable. Review the Debtor’s history of payments and transfers to determine possible exposure to Debtor and others.
• Assemble the information and data necessary to prepare the bankruptcy schedules and statements for filing.
• Prepare the proper petitions, schedules, and statements for filing with the bankruptcy court.
• Determine whether the education classes are necessary. If so, file the required certificates with the court.
• File the bankruptcy petitions, schedules, and statements with the court and obtaining the necessary injunctions and restraining orders.
• Attend the Meeting of Creditors with the Debtor.
• Preparing and filing amended schedules as required by the court.
• Address issues related to redemption, surrender or reaffirmation.
• Respond to inquiries from your creditors and/or the Bankruptcy Trustee.Your San Francisco bankruptcy attorneys from JC Law Group PC will discuss this in detail with you at your consultation.

Attorneys’ fees are charged in addition to the fees required by the court(currently $306). It is impossible to quote an exact fee without first reviewing the Debtor’s individual situation. Each case is unique so we need to meet with you to discuss your particular situation. Please call your San Francisco bankruptcy attorney at (415) 963-4004 today.

If a client provides us with only part of the requested information, then fees will increase for that client because the attorney is forced to do more of the client’s work. The client should avoid this and simply provide all requested information. Thoroughness and accuracy are of utmost importance in a properly filed bankruptcy. Inaccurate paperwork can cause you to lose your bankruptcy protection and cost you more in attorneys’ fees.

It important to know that most Chapter 7 bankruptcies are what’s called a “no-asset” case meaning the debtor keeps all of his or her assets. “No-asset” means that you have no money or property of a value in excess of the exemptions allowed by law, In general, the Trustee will file a “no asset” report shortly after the Meeting of Creditors. Soon after the Meeting of Creditors the Trustee/court will decide whether or not your case is a no-asset case. Normally, your discharge will be entered approximately 120 days after your case was originally filed, unless a creditor files an objection to your discharge. If this happens, the Trustee will request an extension of time or you can ask for more time. Your case will probably be closed shortly after the discharge.

If your case involves non-exempt assets, the bankruptcy Trustee will immediately begin to collect all of your property to which s/he is entitled by law. You are obligated to protect those assets until the Trustee can make arrangements to pick them up. A notice will be sent out to all the creditors notifying them of a possible distribution. The creditors will file a “proof of claim.” The Trustee will examine the proof of claims and object to those the Trustee deems to be improper. All claims not objected to by the Trustee, you, or another creditor will be approved by the court and the creditors will receive a pro-rata share of whatever the Trustee has collected. The fees for the auctioneer, trustee and their attorney are paid out of the funds they collected, not by the Debtor. Oftentimes, it is possible to work out a buy-back arrangement with the trustee where you make payment(s) to the Trustee in exchange for keeping your property. This is why it’s important to select an attorney that has a good working relationship with the Trustee.

This is a difficult situation, especially if you paid money or transferred assets beforebankruptcy. Discuss this with your San Francisco bankruptcy attorney before you pay money or transfer any assets since not all such transactions are permitted under the Bankruptcy laws. The 2005 Bankruptcy Reform Act has added several very complicated hoops to planning for a bankruptcy. Paying down mortgages, buying or transferring assets, paying friends or a relative money may all be doorways for the Trustee and your creditors to attack your assets.

Please review the Do’s and Dont’s of Bankruptcy for more information. You should always consult with a bankruptcy attorney in exemption planning.

If your discharge in bankruptcy is granted, in most circumstances all of your debts will be discharged except the following list, which is intended to be only an outline of most debts that are not discharged. Again, this list is not exhaustive and you should always consult with a San Francisco bankruptcy lawyer regarding your particular circumstances.

• Taxes due within the last three years or taxes not assessed because of fraud.
• If the bankruptcy court so rules, debts for obtaining money, property, services, or an extension, renewal, or refinancing of credit by means of false pretenses, fraud, or a false financial statement used with intent to deceive.
• Debts not listed on your bankruptcy papers, unless the creditor had knowledge of the case in time to file a claim.
• If the bankruptcy court so rules, debts for fraud, embezzlement or larceny.
• Debts for domestic support obligations (alimony, maintenance or support).
• Debts for intentional injury.
• Debts for certain fines and penalties payable to governmental units.
• Debts for student loans, unless not discharging the debt would impose a severe undue hardship. This undue hardship must be properly pleaded to the Court and the judge will decide based on the Debtor’s unique situation.
• Debts that were or could have been listed in a prior bankruptcy case in which you either waived your discharge or your discharge was denied.
• Debts that are owed to a single creditor for a total of more than $500 for the purchase of “luxury goods” incurred by you in the 90 days before you filed the petition for bankruptcy. The 90 day period may be longer, depending on your history of paying, what the money was used for and your “intent” at the time of incurring the debt.
• Cash advances that total more than $750 that arose from the extensions of consumer credit under an open-end credit account incurred by you and the 70 days before the bankruptcy was filed, regardless of the number of creditors involved.
• Debt for personal injury judgments against the Debtor resulting from car accidents in which the Debtor was a drunk driver.
• Post-petition HOA fees.
• Monies owed to a 401(k), pension, profit-sharing, stock bonus or such other plan.

Generally, no. The bankruptcy Trustee will request that you provide copies of several documents (tax returns, bank statements, etc). One of these items will be copies of some of your pay stubs before filing. If you refuse to provide this information then the Trustee may send a form to your employer seeking information about your wages. Therefore, your employer will usually not be contacted so long as you comply with the Trustee’s request.

Unfortunately, we are not privy to the formulas used by credit reporting agencies. In all candor, the filing of a bankruptcy may mean your credit rating will drastically decrease, and will remain on your credit report for up to ten years. Depending on your situation, it may not take long after your discharge to substantially raise that rating. Several financial institutions openly solicit business from recent debtors, apparently because they know that the debtor cannot file another Chapter 7 for at least eight years. In general, most people faced with bankruptcy already have a poor credit report score so filing for bankruptcy can be one way to start rebuilding credit.

Debtors cannot receive another Chapter 7 discharge for eight years after the filing of the first bankruptcy. Be advised that if the Debtor commits fraud, or fails to perform as required by law, the discharge can be revoked.

In short, yes. However, navigating the bankruptcy codes, particularly the 2005 amendments, can be extremely difficult. An unsophisticated debtor may receive a discharge, but unnecessarily give up property that he or she could have preserved. Worse, a debtor can make an innocent mistake that results in dismissal of the case. San Francisco bankruptcy attorneys from JC Law Group PC can assist in your bankruptcy filing and protect your interests. We represent clients from the following counties: San Francisco, Alameda, San Mateo, and Santa Clara. Please schedule an appointment to discuss your situation at (415) 963-4004.

Yes, Credit card debts are unsecured debts and are generally dischargeable in bankruptcy. It is important to contact a bankruptcy attorney immediately upon receiving the complaint because there are deadlines for answering the complaint, and time frame in which the credit cards can get a default judgment against you. Once a default judgment is entered, they can move to garnish your wages or lien on your property. For more information on dealing with creditor lawsuits, listen to this Podcast.