Chapter 7

Reuben Nathan
Practicing Personal Injury Attorney at Matrix Law Firm in Los Angeles California

In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Most liens, however, such as real estate mortgages and security interests for car loans), survive. Other assets, if any, are sold (liquidated) by the trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, but there are various types of debt that are not discharged in a Chapter 7. Common exceptions to discharge include child support, income taxes less than 3 years old and property taxes, student loans (unless the debtor prevails in a difficult-to-win adversary proceeding brought to determine the dischargeability of the student loan), and fines and restitutions imposed by a court for any crimes committed by the debtor. Additionally, spousal support is not covered by a bankruptcy filing nor is property settlements through divorce. Despite their potential non-dischargeability, all debts must be listed on bankruptcy schedules.

Filing a Chapter 7 immediately stops all creditor harassment, foreclosures, lawsuits, bank levies, wage garnishments, collections as well as auto repossessions. Those who most benefit from this filing are in financial positions of not having the ability to realistically repay their debt in the immediate future or are not making any progress with reducing their debt.

Chapter 7 Bankruptcy

Are you overwhelmed with debt? Are your financial options running low? Do your monthly bills sit in a pile, unpaid? Do creditors and collection agencies call you every hour of every day asking for money you don’t have?

If you answered “Yes,” to any of these questions, you are probably in need of a qualified California bankruptcy attorney. Following a free initial consultation, a California bankruptcy attorney can help you decide if Chapter 7 bankruptcy is the right way to go for your particular financial situation.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a form of liquidation and is the most common form of consumer bankruptcy. Often times, it is the best bankruptcy option for consumers with a relatively small amount of debt, as well as those who don’t have much valuable property. At Matrix Law Firm’s Bankruptcy Lawyers, our California bankruptcy attorney team is equipped to answer any and all questions you may have about Chapter 7 bankruptcy.

In the end, bankruptcy laws seek to provide a “fresh start” for struggling debtors. The focus of Chapter 7 bankruptcy is to discharge qualifying debt, eliminate personal liability on as much debt as possible. While Chapter 7 liquidation usually results in a complete discharge of most consumer debts, it is possible that certain debts will not be discharged. To get answers to your Chapter 7 bankruptcy questions, contact Matrix Law Firm’s Bankruptcy Lawyers today.


Chapter 7 liquidation bankruptcy usually takes about four to six months from start to finish, often taking only one trip to 341 creditor meeting. A 341 creditor meeting is a meeting of the debtor’s creditors and is required under section 341 of the United States Bankruptcy Code. During the Chapter 7 liquidation procedure, this is the first meeting which involves the bankruptcy trustee, the creditors and the debtor. It occurs usually 20 to 40 days after the Chapter 7 bankruptcy is filed.

At Matrix Law Firm’s Bankruptcy Lawyers, our California bankruptcy attorney team is dedicated to your best interests. After sitting down with us for your initial consultation, we will assess your total situation, gather as much information as possible, and help you make an educated decision on your financial future.

After filing for Chapter 7 bankruptcy, you will receive the benefit of an “automatic stay,” which immediately stops your creditors from trying to collect on your debts. This temporarily prevents creditors, to whom you owe secured debt, from going after your car, house or other property. The automatic stay will cease most legal proceedings from happening and will end collection efforts.

In essence, once you file your bankruptcy case, most of your financial obligations are gone.

Choosing a qualified California bankruptcy attorney team is possibly the most important part of your bankruptcy case. Filing for Chapter 7 liquidation can be complicated, but with a California bankruptcy attorney team at your side, you can successfully go through the bankruptcy process, get your debt problems under control, and get your life back on track.
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