Residents in Hayward face financial challenges on a daily basis. From lost jobs to medical emergencies and many other incidents, there are no shortages of events that can plunge one into financial trouble. This can result in missed mortgage payments, missed car payments, credit card bills piling up, and more. Creditor calls soon follow, including threatening letters and often intrusive contact with friends, family, and employers.

It is easy to feel overwhelmed at these times. Banks, credit card companies, and other creditors seem to hold all of the cards. Fortunately, federal law has built in protections for residents facing these challenges. Bankruptcy provides a means to break free from unsurmountable debt and receive a fresh start.

If you are in financial trouble, Chapter 7 Bankruptcy may be the answer. Chapter 7 Bankruptcy is by far the most common type of bankruptcy, with over 700,000 people choosing to file for Chapter 7 each year. About 20,000 of these filings are from the bankruptcy courts for the Northern District of California, in which Hayward is located.

Benefits of Chapter 7 Bankruptcy

1. Eliminate Unsecured Debts

Chapter 7 Bankruptcy is a type of liquidation bankruptcy. This means that in Chapter 7 Bankruptcy, a debtor sells all of his or her non-exempt assets in order to pay as much as they can to their creditors. In exchange, all of a debtor’s remaining unsecured debts are forgiven. For many debtors in Hayward, particularly those with a large amount of unsecured debt, Chapter 7 is a great option.

The most common types of unsecured debt include:

• Credit card debt;
• Medical bills;
• Personal loans;
• Utility bills; and
• Junior liens, such as second or third mortgages, that are wholly unsecured.

Junior liens, such as second or third mortgages, that are wholly unsecured.

The above types of debt can often be wiped away at the end of the Chapter 7 Bankruptcy process, giving the debtor the chance to get a fresh financial start. There are more complexities with “secured assets” like a first home mortgage. However, other avenues may be available with those situations to best position oneself to move on after settling the matter.

2. Preserve Exempt Assets

Contrary to some misconceptions, filing for bankruptcy does not mean that you will lose all of your possessions. For example, Chapter 7 Bankruptcy allows debtors to use California’s system of property exemptions to save many of their assets from liquidation in the bankruptcy process. For some debtors with few assets, all of their assets may be exempt.

Some of the largest exemptions available to Hayward residents include the homestead exemption, the wildcard exemption, exemptions for retirement accounts and pensions, and a personal vehicle exemption.

Contact a Chapter 7 Bankruptcy Attorney in Hayward

The Law Offices of Melanie Tavare are proud to offer Chapter 7 Bankruptcy services to members of the Hayward Community. Although Chapter 7 Bankruptcy is not the right choice for all debtors, it is definitely an important option to consider if you have large amounts of unsecured debt and assets that may be exempt from creditors. If you would like to speak with an experienced Chapter 7 Bankruptcy Attorney, contact us online or call us at 510-255-4646.

The Law Offices of Melanie Tavare is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code