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Chris Jackson Law, PC

Chris Jackson Law, PC - Christopher J. Jackson


CHAPTER 7

Millions of Americans are struggling to keep up with their monthly bills and household expenses. Bankruptcy protection was designed to eliminate debts, save assets, and get your head above water again with a needed fresh start.

What Debts Can I Eliminate in a Chapter 7 Bankruptcy?
If you are one of the millions of Americans struggling with debt, filing for a Chapter 7 bankruptcy may be the best decision you could ever make. Under a Chapter 7 bankruptcy, you can eliminate all of your unsecured dischargeable debts, which may include credit card bills, medical bills, utility bills, some bank loans, judgments from creditors, certain business debts, and more. Once discharged, they are gone forever!

Certain debts are not dischargeable, including certain taxes, alimony, child support, criminal debts, student loans, and a few others. We can help you to determine whether or not a debt will be eligible for discharge.

Will a Chapter 7 Bankruptcy Stop My Foreclosure, Repossessions, Etc.?
Filing either a Chapter 7 or Chapter 13 bankruptcy stops creditor harassment, wage garnishment, lawsuits, repossessions and foreclosures.

What Assets Can I Keep in a Chapter 7 Bankruptcy?
Due to generous exemptions in California which protect your assets in bankruptcy, approximately 97% of my clients keep all their assets in a Chapter 7 bankruptcy. Such exemptions apply to vehicles, household goods, cash, bank accounts, clothing, jewelry, retirement accounts, equity in your home and other assets.

Should I file a Chapter 7 or Chapter 13 Bankruptcy?
Chapter 7 bankruptcy will typically eliminate all unsecured debt and give you a "fresh start" in as little as 3-4 months. It will also prevent your secured-debt creditors from pursuing you should you decide to walk away from your home or vehicle. I generally prefer Chapter 7 for most clients, unless they can utilize Chapter 13 to (i) remove their second mortgage (HELOC) from their house; (ii) significantly reduce car or mortgage payments; and/or (iii) catch-up on past-due payments on their car or home loans.

Although Chapter 13 bankruptcy is a longer-term commitment, in certain situations it has some significant advantages. For example, if you owe more on your first mortgage than the value of your house, you can completely remove the second mortgage or home equity loan in a Chapter 13! In addition, you can reduce payments on your car and home loans. Further, you can spread out past-due payments on a house or car over 3-5 years if you so choose. Moreover, you can often pay off debts which are non-dischargeable in Chapter 7 (e.g., recent tax debts) over time.

How will Bankruptcy affect my Credit?
While bankruptcy will affect your credit to a degree, if you are in default on many bills, your credit score is likely already suffering. The good news is that filing for bankruptcy will wipe your debts clean on your credit report, and can sometimes even improve your credit score! See Wall Street Journal Article: "Declaring Bankruptcy Can Improve Your Credit Score."

While bankruptcy will stay on your credit report for seven (Chapter 13) or ten (Chapter 7) years, depending upon your situation you may qualify for a home loan in as short as 18-24 months. As noted in the above article, you can also achieve a 700 credit score within a short time with proper credit management. We can discuss ways to improve your credit after bankruptcy.

Contact an experienced and compassionate bankruptcy lawyer at Chris Jackson Law, PC today. We'll review your financial situation to determine whether a Chapter 7 or Chapter 13 bankruptcy is right for you.

Contact us for a FREE consultation: (831) 655-5111


"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."


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Why Bankruptcy?
  • Stop Harassing Phone Calls
  • Get Rid of Debt
  • Stop a Foreclosure
  • Stop Repossession
  • Remove Second Mortgage & Equity Line
  • Ease Pressure & Achieve Financial Well-Being
Chris Jackson Law, PC