Tag Archives: chapter 7
New Law Increases California Homestead Exemption up to $600,000
There is good news for California homeowners who are considering filing for bankruptcy protection. A new state law raises the homestead exemption — the amount of home equity that can be shielded from creditors in a Chapter 7 or Chapter 13 — to a minimum of $300,000 and a maximum of $600,000. The increase was […]
What is the Right of Redemption in Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is called liquidation because some of the debtor’s property is converted to cash to pay back creditors. However, property that is subject to secured loans is treated differently. The asset can be repossessed by the lender when the debt is discharged. But Chapter 7 filers may have secured personal property that they […]
How Exemptions Help You Keep Your Property in Bankruptcy
One of the most persistent misunderstandings in bankruptcy is that you have to give up your assets to gain a discharge from debt under Chapter 7. The truth is, most Californians who file in Chapter 7 get to keep most of their property. Remember, the goal of bankruptcy is to help you get a fresh […]
Giving Up Real Estate in a Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, the trustee may sell a portion of the debtor’s property in attempts to repay creditors. Not everything has to be turned over to the bankruptcy trustee, however, as California bankruptcy laws allow the debtor to keep exempt property. Property that is exempt is considered to be the “necessities of modern […]
How the Liquidation of Assets Works in Chapter 7
Many people fear they will be left with nothing when filing for Chapter 7 bankruptcy, but that is not the case at all. Chapter 7 liquidates your assets and uses the proceeds to pay back creditors. After assets have been liquidated and the creditors paid back, you may then be free of all consumer debts […]
