Chapter 7 Bankruptcy

On October 17, 2005, the bankruptcy law changed. Since then, many clients have told us they thought the bankruptcy law ended then and that they would not be able to file anymore. This is not true.

Most people can still file Chapter 7 bankruptcy and wipe out their debts. It is a little harder now because there are more procedural requirements under the new law, but most people can still qualify for bankruptcy if they are swamped with high interest credit card debt.

Frequently Asked Questions

Q. How much does it cost to file a Chapter 7 Bankruptcy with Jennifer Aragon?

$995.00 attorney's fees
$299.00 filing fee
$50.00 credit report

Q. What is a Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy is a "liquidation of debts". The Debtor (that's you) receives a discharge a court order stating that you no longer have to pay your creditors--usually within four months. In the vast majority of cases Chapter 7 will give you a very quick "fresh start".

Q. How difficult will it be for me to file a Chapter 7 under the new bankruptcy laws?

For the vast majority of people, Chapter 7 is still very possible with very little extra effort! The main difference is that there is more paperwork than there used to be prior to the 2005 change in the law. Jennifer Aragon will take care of all of the paperwork and court appearances for you!

Q. Will my creditors stop harassing me?

Yes, absolutely! By law, all actions against a Debtor must case once the documents are filed with the court. Creditors cannot initiate or continue any lawsuits, wage garnishments, or even telephone calls demanding payment.

Q. Will my spouse be affected?

Not directly. However, California is a community property state, so it is generally advisable to file jointly with your spouse, as both husband and wife may be deemed liable for the other's debts. Ask Jennifer more direct questions on this topic when you meet with her.

Q. Who will know that I filed for bankruptcy?

Bankruptcy filings are public records. However, under normal circumstances, no one will know that you went bankrupt, unless they were specifically searching the court files for your personal information.

Q. How often can I file for a Chapter 7 Bankruptcy?

You may file for (and receive a discharge in) a Chapter 7 Bankruptcy case once every 8 years. If you have received a discharge in another chapter of bankruptcy within the last several years this might also affect your eligibility to receive a discharge in a Chapter 7 Bankruptcy.

Q. Isn't consolidation better for my credit than Bankruptcy?

In most cases, consolidation is not better for your credit. Chapter 7 will cost you less money and you will rebuild your credit rating faster than if you had tried to consolidate. Be cautious if you are trying to consolidate many "non-profit" credit counseling groups engage in fraud against financially desperate people. i.e., they may take your money and do nothing on your behalf.

Q. Can I keep my credit cards?

Whether a Debtor keeps credit cards after filing for Bankruptcy is up to the credit card company. But in most cases, even if you have a zero balance, the credit card company will cancel your charging privileges.

Q. Can I get more credit after filing for Bankruptcy?

Yes! Usually you will qualify to purchase a house within about two years after having filed for bankruptcy. You should be able to obtain credit cards shortly after having filed for a Chapter 7 Bankruptcy. Only you can decide if obtaining further credit cards is an advisable course of action.

Q. Can my employer fire me for filing bankruptcy?

No! U.S.C. Section 525 prohibits any employer for discriminating against you because filed for bankruptcy.

Q. Will I lose property by filing a Chapter 7?

In almost all cases the anwer is "No!" Almost all property you have will be considered EXEMPT (untouchable by the court and/or creditors). Secured property (homes, cars, etc.) with loans against them will be exempt and can be retained SO LONG AS YOU ARE CURRENT AND KEEP CURRENT ON YOUR MONTHLY PAYMENTS.

Q. Do I have to go to Court?

You are required to appear once at a civil hearing, which will be held 20 to 40 days after the date of filing your petition. However, you will not be in a courtroom and you will not see a judge. The attorney, Jennifer Aragon, will be present with you while a court trustee asks you a few simple questions. You do not have to face this alone!

Q. What role does my attorney play in filing a Chapter 7 Bankruptcy?

Advisor
Handle all creditor calls
Prepare all necessary paperwork
Appear at court hearing with you
Protect your assets

Remember, we are here to help you out! Do not hesitate to e-mail us at jenaragon@aol.com or call us at (213) 482-2300 with your questions.

Very Truly Yours,

Jennifer Ann Aragon, Esq.