If you live in California, you may be one of the large numbers of people who have recently lost their job or taken a significant loss in pay. You may have even considered filing a Chapter 7 bankruptcy. The significance of a Chapter 7 bankruptcy on your credit though is extremely great. You may not realize it, but people who file a Chapter 7 bankruptcy will have a record of it on their file up to 10 years. This has a significantly large impact on how creditors view you. You might find like so many others though, that you have no other options.
Though Chapter 7 is described as liquidation, a Chapter 7 case usually permits you to get rid of debts, usually without having to lose any of your assets. Consumer debts are typically wiped out. The most common exceptions are recent year taxes, student loans, support obligations, and fines/penalties. A person filing a Chapter 7 Bankruptcy often can begin the credit recovery/rebuilding process as soon as the case is completed, about 3 or 4 months after filing. Contact a bankruptcy lawyer in Sacramento at Law Office of Robert W. Fong for free consultation today.
If you get behind on your payments, your creditors can take the collateral and sell it to get their money. It is important to contact a bankruptcy lawyer in Sacramento for specific consultation regarding your personal situation. Even filing for bankruptcy can only delay the loss of your home or car if you don’t keep up the payments. Unless you are willing to lose your home or car, you must make paying these secured debts a very high priority. This seems only logical, but it’s shocking by the number of our clients who, probably because of collection harassment, pay credit card payments instead of their house or car payments.