Louis Zimmerman Attorney at Law

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Chapter 7

     Also known as "Fresh Start" or "Straight" bankruptcy, Chapter 7 bankruptcy allows a person to eliminate most or all of his debt while being allowed to keep their exempt property. Exemptions are a complicated subject and I'll be more than glad to discuss this with you, or contact a qualified local bankruptcy lawyer. Most of my cases are "no asset" cases, which means there are no assets or they are exempt from the bankruptcy estate.

In most cases, a person may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan.

Chapter 7 eliminates:

• Credit Card debts
• Medical debts
• Personal Loan debts
• Lawsuit debts
• Judgments - unless fraud or criminal related
• Deficiency debts on repossessed autos and foreclosures
• Some IRS debts - many income tax debts are dischargeable
• Personal Injury debts - except driving while intoxicated and criminal injury

In California, your house (homestead) may be exempt from bankruptcy.

Other exemptions include:

• Car

• Household Furniture

• Books & Pictures

• Clothing & Apparel

• Wages & Tax Refunds

• Tools of your trade

• Farm implements

• Cash value of insurance policies

• Pension & Benefits

     Chapter 7 is the most commonly filed bankruptcy and can allow for a new start. More and more Americans find themselves struggling with debt they cannot control. Chapter 7 bankruptcy allows for their debt to be discharged and lets them get a hold of their financial situation with a fresh start. It does not eliminate student loans except extreme hardship cases, debts from certain types of taxes, alimony maintenance or support payments, fines, penalties and criminal restitutions, or debts from personal injuries caused by driving while intoxicated.

     If filing for bankruptcy is an opportunity for a debtor to emerge out of a financial crisis and start afresh, then Chapter 7 of the Bankruptcy Code is the way to achieve this end relatively faster. Under Chapter 7 of the Bankruptcy Code all non-exempt property of the debtor is sold and the proceeds of the same are distributed to the creditors. In most cases where Chapter 7 is brought into force the debtor has no assets to lose, therefore the fresh start takes place relatively faster.