Bankruptcy is not placed in a single category; there are actually a handful of bankruptcy types out there. Regardless of the kind of bankruptcy a person is going to file under, they have to first be qualified to file and they have to make sure that filing for bankruptcy is their only option concerning finances. We highly recommend seeking the help of professionals like a bankruptcy lawyer in San Diego. We highly recommend Bankruptcy Law Center.

Who are Qualified to File for Chapter 7 Bankruptcy?

People who are buried in debt are may file for a Chapter 7 bankruptcy of they desperately want to eliminate debts that they simply can’t pay for. Aside from that, people who file for bankruptcy aim to rebuild their credit with clean slate. Keep in mind that there are stated limitations as to the people who are qualified to file for Chapter 7 bankruptcy. Those that were granted discharge before a Chapter 13 cases will have to wait about 6 years from the time that the Chapter 13 was filed to be qualified for filing Chapter 7.

Petitioning for Chapter 7 bankruptcy invokes what we call ‘automatic stay’ which immediately stops the majority of the collection, repossession, lawsuits, foreclosures, wag garnishments and bank levies by the creditors. Clients are not required to do anything to implement the automatic stay since it acts just like an injunction; creditor basically have no other choice but to respect it or they will suffer consequences. Most of a client’s debts will be discharged through Chapter 7, but there are still limited exceptions to the discharge of debts. The exempted debts are called ‘nondischargeable debts.’ Also, debts that are the result of fraud, bad checks or lying on credit card applications can be discharged. There are a ton of ways to optimize the benefits of Chapter 7, with the help of a bankruptcy lawyer San Diego.