Bankruptcy Lawyer  | What Is Chapter 7 Bankruptcy

Bankruptcy Lawyer  |  Chapter 7 bankruptcy is the most common option for a consumer who is considering bankruptcy. In this type, a debtor’s non-exempt assets are liquidated by the trustee in order to repay the person’s creditors. Every state has exemptions for certain types of property, meaning a large portion of many people’s assets is normally protected. Businesses are also able to file for this type of bankruptcy, but many businesses prefer to choose a chapter that allows them to reorganize their debts if they are staying in business

Filing for Chapter 7 bankruptcy

In order to qualify for Chapter 7, the debtor must meet the means test. The means test looks at the person’s income and expenses. If the income is above a certain amount, he or she may have to file under a different Chapter. Before filing the petition, the debtor must complete a required pre-filing credit counseling course. The approved courses are available at many locations as well as online. Filing bankruptcy then involves completing the court’s petition. The person will also need to file the credit counseling certificate for the course as well as a variety of schedules showing the debts that are owed, the income and the assets.

The Automatic stay is issued and the trustee is appointed

After the bankruptcy petition is filed, the court then issues an automatic stay. This is an injunction preventing any of the person’s creditors from continuing further collection activities, including pending money lawsuits, garnishments, letters, phone calls and others. The automatic stay lasts for the duration of the bankruptcy case. The court also appoints the trustee that handles the liquidation of any assets and the payments to the creditors.

Meeting of the creditors

The debtor will need to attend the meeting of the creditors. At this meeting, the debtor may be questioned by the trustee and by any of the creditors. In most Chapter 7 cases, creditors do not show up for the meeting. After the meeting, the trustee can then take control of any non-exempt assets.


If the bankruptcy case is successful, the person’s unsecured debts will be discharged. Not all debts are able to be discharged in bankruptcy. Creditors who have a secured interest in property, such as an auto lien or a mortgage lender, will retain those interests. The debtor will not have to repay any unsecured debts that are discharged.

Chapter 7 Bankruptcy helps many people who are overwhelmed by their debts. Through this type of bankruptcy, people may receive a fresh financial start and be able to move forward with their lives. D. Max Gardner is a qualified, experienced bankruptcy lawyer in Bakersfield, CA who will represent you every step of the way.


Our office can assist you in determining whether bankruptcy is the right choice for you, and which chapter under the Bankruptcy Code would provide you with the most relief.  To schedule a free consultation with a knowledgeable Bakersfield bankruptcy lawyer about filing a Chapter 7 bankruptcy in Kern County, please call our office today at 661-888-4335 .