After filing Chapter 7 bankruptcy in California, you can expect immediate relief from creditors and a process that typically takes 3-4 months. Here’s what happens:
- Automatic Stay: Creditors must stop all collection actions.
- Meeting of Creditors: Attend a hearing to answer questions under oath.
- Asset Review: A trustee assesses your assets; non-exempt property may be sold.
- Debt Discharge: Most unsecured debts are eliminated.
- Financial Education: Complete mandatory credit counseling and financial management courses.
Important Considerations:
- Chapter 7 stays on your credit report for 10 years.
- Not all debts are dischargeable.
- Consult a bankruptcy attorney for personalized guidance.
Filing for Chapter 7 bankruptcy can be a daunting decision, but understanding the process can help ease the stress and uncertainty. Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows individuals to discharge most of their debts and get a fresh financial start.
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