Chapter 7 FAQ
Question: Will all my property get taken if I file Chapter 7?
Answer: Generally speaking, no. When filing Chapter 7 in California a debtor may use certain exemptions to prevent most if not all of their property from being taken.
Question: Will the trustee come to my house and do an inventory of all my property if I file Chapter 7?
Answer: Probably not. Only if a trustee believes there is property worth liquidating at a debtor’s home. Generally this is not the case.
Question: Can I keep my car if I file Chapter 7?
Answer: Probably. In most cases a debtor can keep their car so long as they can afford the monthly payments if financed, or there isn’t significant equity in the vehicle.
Question: How long does the process take if I file Chapter 7?
Answer: Once a petition is filed the Chapter 7 process only takes a few months.
Question: How can filing Chapter 7 prevent foreclosure?
Answer: Once a petition is filed an automatic stay goes into effect that prevents a creditor from collecting a debt for a specified period of time. By filing Chapter 7 a debtor can stall the foreclosure process in hopes of becoming current on the mortgage or working out a payment plan with the lender.
Question: Can I do a loan modification while in Chapter 7?
Answer: Yes. The lender will need written authorization from your attorney to speak with you about a loan modification. Generally, however, a debtor will probably be out of Chapter 7 before a loan modification is approved. Thus, in most instances where a debtor has fallen behind on their mortgage payments and wishes to file Chapter 7, it is wise not to reaffirm the debt on the home in case the loan modification falls through post bankruptcy.
Question: How long will the Bankruptcy remain on my credit report if I file chapter 7?
Answer: Up to ten years.
Question: How can I live without credit after filing Chapter 7?
Answer: A debtor is required to take two credit counseling courses when filing for Chapter 7. The courses discuss how a debtor can manage their finances post filing.
Question: If I’m married to I have to file Chapter 7 jointly?
Answer: It depends. If a married couple shares the same debt and only one party files for Chapter 7, the debt is discharged only to the filing party. Thus, the non filing spouse would still be responsible for the debt. Thus, married couples should review their debt before deciding whether both parties need to file.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
