Chapter 7 Helping You Live a Debt Free Life 

Los Angeles Chapter 7 Bankruptcy Attorneys

Helping Clients Protect Assets & Get Out of Debt

If you are struggling to pay your bills or fear your home will be foreclosed, then filing for bankruptcy might be your solution for eliminating some or all of your debt. At SM Law Group, we are committed to using our extensive knowledge of the law to assist clients who are experiencing financial hardship.

Through Chapter 7 bankruptcy, also called liquidation bankruptcy, debtors can wipe out their debts. Our dedicated lawyers proudly serve clients throughout Los Angeles. We will gladly take the time to speak to you about the details of your case and review your finances so we can advise you of all your options under the law.

What Is a Chapter 7 Bankruptcy?

Most kinds of debt can be wiped out in a Chapter 7 bankruptcy, such as credit cards, medical bills, and personal loans. However, debts like taxes, student loans, child support/alimony, and debt incurred through fraud can’t be discharged in Chapter 7.

When you file for Chapter 7 bankruptcy, the court will look at all your sources of income and expenses to determine if you are eligible for debt relief. Through a procedure called the Means Test, the court will compare your expenses to average expenses of people in your area. If your income and expenses are average, you won’t qualify for this type of bankruptcy.

Can I Keep My Home If I File for Chapter 7?

If you have no equity and are current on your mortgage payments, then you’ll have no problem keeping your house after you file for Chapter 7. If you do have equity in your home, then California law allows you to protect a certain amount of equity in your home when you file for bankruptcy. The amount of equity you can protect varies on your age, as well as your marital and disability status.

For example, let’s say a homeowner qualifies for the $75,000 exemption. If the house was worth $500,000 and had a $450,000 mortgage against it, that would leave $50,000 of equity in the home. Because the amount of equity is less than the $75,000 limit in this example, the homeowner would be able to file Chapter 7 bankruptcy and keep their house.

It is absolutely critical to speak to an experienced bankruptcy attorney before you file to see if your home and other assets can be protected. While most of the people we represent can keep their homes if they file Chapter 7, some have so much equity in their home that the home would be at risk if they file a Chapter 7. In this situation, filing for Chapter 13 bankruptcy is generally the best option for the homeowner.

Does Chapter 7 Stop Foreclosure?

Filing for Chapter 7 will delay a foreclosure, but only temporarily. The lender is unable to proceed with the foreclosure until it gets a court order from the bankruptcy court authorizing it to proceed, or until the bankruptcy case is closed.

Although Chapter 7 is obviously not a permanent solution, it can give a homeowner some temporary breathing room. Chapter 7 can also be very advantageous to a homeowner who wants to give up their home. Not only does Chapter 7 wipe out credit cards, but it also prevents a second mortgage lender from coming after a homeowner for a deficiency after a foreclosure.

Consult with Our Experienced Los Angeles Bankruptcy Lawyers

Are you considering whether bankruptcy is the right option for you and your family? Then contact our top-notch lawyers at SM Law Group so we can talk about your options under California’s bankruptcy laws. Our esteemed attorneys have assisted countless clients in the greater Los Angeles area rebuild their lives and shore up their financial future by helping them get out of debt. Although the Chapter 7 process may seem daunting, our knowledgeable attorneys will walk you through each phase of the process and advocate for your best interests.

If you have questions about whether you qualify for Chapter 7 and whether it would be beneficial to you, then please give us a call at (818) 805-1758 to schedule a free case consultation today.

Get a Fresh Start & Wipe Away All Your Debt

See Our Winning Case Results
  • Individual v. Credit Card Company (harassing phone calls) $150K Settlement
  • Individual v. Credit Card Company (harassing phone calls) $280K Settlement
  • Individual v. Credit Card Company (harassing phone calls) $175K settlement
  • Small Business Chapter 7 Over $2 Million Debt Discharged
  • Individual Chapter 13 Over $75k in Mortgage Arrears Reorganized
  • Individual Chapter 7 Over $1 Million Debt Discharged
  • Individual v. Credit Card Company (harassing phone calls) $250K Settlement
  • Individual v. Credit Card Company (harassing phone calls) $100K Settlement
  • Individual Chapter 13 $100,000 of Unsecured Debt Discharged
  • Individual v. Credit Card Company (harassing phone calls) $300K Settlement
  • Individual v. Credit Card Company (harassing phone calls) $100K Settlement
/

Client Reviews

Hear From The People We've Helped
  • The absolute best when it comes to handling bankruptcy!

    “They do not pass any judgment upon you - they are simply there to help. I found them to be honest, reliable and timely. The support staff is extremely friendly and very informative. The lawyers have ...”

    - Anna G.
  • John and the representative who met me at the courthouse were very thorough and guided me every step of the process.

    “Thank you John Sarai and the rest of SM Law Group for helping me file my Bankruptcy Chapter 7 case. It was a smooth process. John and the representative who met me at the courthouse were very thorough ...”

    - Evitha B.
  • They made a very stressful situation much easier for me.

    “SM law group handled my bankruptcy case and I was very satisfied with their service. They made a very stressful situation much easier for me. They explained everything to me and it was fast and ...”

    - Lenny DcComics
  • I have never experienced more professional care. My phone calls and emails were answered within 5 minutes!

    “Absolutely outstanding experience! Kian Mottahedeh was my attorney. I have never experienced more professional care. My phone calls and emails were answered within 5 minutes every single time. Kian is ...”

    - Lenka Wallace
  • In the end he got me a settlement for the maximum policy limit which was triple what I expected!!!!! Thank you John!

    “I got into an accident and I called John at SM Law Group and I felt comfortable from the minute I talked to him. He was always available to talk, and didn't pass my case off to anyone else. He handled ...”

    - Negin B.
  • He allowed me time and opportunity to get my bankruptcy paid for and took care of the creditors - for that I am truly grateful.

    “I am truly thankful that I found Kian. He is a truly good person to work with. He allowed me time and opportunity to get my bankruptcy paid for and took care of the creditors - for that I am truly ...”

    - Kera Carter
  • Kian is an awesome lawyer. He helped me get through my bankruptcy.

    “Kian is an awesome lawyer. He helped me get through my bankruptcy. He is easy to talk to and patient in answering all the questions you might have. I would definitely recommend him to anyone that ...”

    - Gonzalo Ceja Canela
  • The attorneys were friendly and helpful and they responded to my emails within minutes.

    “My experience with SM Law Group was very positive. The attorneys were friendly and helpful and they responded to my emails within minutes. I would definitely recommend them to anyone who needs a ...”

    - DeEtta Copenhaver
  • Fantastic firm!!!! trustworthy, reliable, knowledgeable and always available to help.

    “Fantastic firm!!!! trustworthy, reliable, knowledgeable and always available to help. My sister and I were given the opportunity to meet this wonderful firm while they volunteered at one of the ...”

    - Teresa Aguilar Alcaraz
  • My experience with SM Law Group has been excellent.

    “My experience with SM Law Group has been excellent. My attorney was always helpful, friendly and honest with me about what I needed to do and how I needed to proceed through my bankruptcy. I just ...”

    - Wayne Roche
/

In The News

Recent Feature in The Los Angeles Daily Journal

Learn more about the work that is captured in the news. Our team is recognized in our community and among our peers for our tireless devotion to clients facing bankruptcy and personal injury-related matters.

Start Your Free Consultation Today

High Quality Representation for Your Legal Needs
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.