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Chapter 7 Bankruptcy Attorney – Debt Elimination in Temecula & Riverside

Filing Chapter 7 bankruptcy in California can help eliminate overwhelming unsecured debts such as credit cards, medical bills, and personal loans while protecting essential property. For individuals and families in Temecula, Murrieta, and Riverside County, Bankruptcy Attorney David Nelson – known as Bankruptcy Man – provides trusted guidance through every step of the process.

Who Qualifies for Chapter 7 Bankruptcy?

Not everyone automatically qualifies for Chapter 7, but many people who seek relief do. Eligibility is determined primarily by the means test, which compares your household income to the median income in California for your family size.

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Even if your income is above the median, certain expenses may still allow you to qualify. Additional requirements include not having received a recent bankruptcy discharge and meeting residency and filing history rules.

What Happens to Your Property in

Chapter 7?

One of the biggest concerns for clients is whether they will lose their property in bankruptcy. The good news is that California law provides two exemption systems designed to protect property, and you are allowed to choose the system that best fits your situation:

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• System 1 (California Code of Civil Procedure §704): Stronger protection for home equity. Often chosen by homeowners with significant value in their property.

• System 2 (California Code of Civil Procedure §703): More flexible for those without substantial home equity. This system allows you to protect cash, vehicles, personal property, and “wildcard” amounts.

 

Choosing the right system can make a major difference in how much of your property is protected, which is why professional legal advice is essential.

How Chapter 7 Bankruptcy Helps

Filing for Chapter 7 can provide immediate and long-lasting relief by:

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• Stopping creditor harassment through the automatic stay.

• Wiping out unsecured debt such as credit cards, payday loans, and medical bills.

• Halting lawsuits, wage garnishments, and bank levies.

• Offering a financial reset so you can move forward debt-free.

 

Most Chapter 7 cases in California are considered “no asset cases,” meaning clients keep all of their property while eliminating debt.

Frequently Asked Questions About Chapter 7 Bankruptcy

Q1: How long does a Chapter 7 bankruptcy take in California?
 

Most Chapter 7 cases last about 4 to 6 months from filing to discharge, depending on court schedules and trustee reviews, and your response time when asked for documentation by the Trustee.

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Q2: Will I lose my home if I file Chapter 7 bankruptcy?
 

In most cases, no. California’s exemption laws allow you to protect home equity, over $600,000 worth in most cases. However, under the 1215-day rule in federal bankruptcy law, if you purchased your home during the last 1,215 days (about 3 years and 4 months), prior to filing your bankruptcy case, there may be a cap on the amount of equity you can protect, about $200,000 at this time. You must ask your bankruptcy attorney about this issue. If you purchased your home more recently, you may want to wait to file your case. 

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Q3: What is the difference between the two California bankruptcy exemption systems?

 

In Bankruptcy we can protect items of property which you own, like furnishings, retirement accounts, money in the bank, your home, car, musical instrument, These protections are called exemptions in the Bankrutpcy Law. The Federal Government gave the states the right to decide what you can protect when you file a bankruptcy case. Most states came up with own system of protections, while California recognizing the need, came up with 2 systems. The first is great for homeowners and the second is great if you don't. 

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• System 1 (Calif Code Civ Pro Sec 704): Best for homeowners with significant equity.

• System 2 (Calif Code Civ Pro Sec 703): Best for renters or homeowners with little equity who want stronger protection for personal property, vehicles, and cash.

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  Your attorney will help determine which system best protects your situation.

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Q4: Can Chapter 7 stop a lawsuit or wage garnishment?
 

Yes. Filing Chapter 7 triggers the automatic stay, which is a Temporary Restraining Order which stops Your Creditors from continuing collections against you in the form of lawsuits, wage garnishments, foreclosures, repossessions, harrassing phone calls, and all collection activity.

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Q5: What debts cannot be discharged in Chapter 7?
 

First thing, a Discharge is when the Automatic Stay which is the Temporary Restraining Order (see above) is made into a Permanent Injunction prohibiting all types of collections against you. Certain debts, such as student loans (except in rare cases of hardship), child support, alimony, and most recent taxes, cannot be discharged in bankruptcy.

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Older taxes can often be discharged in a bankruptcy, however, you must ask your attorney about this to be sure. He can't promise they will be discharged, but he should be able to say if it looks like they should or not. You will want to Get a Transcript from the IRS or a Statement of Account for the tax years you want to Discharge. 

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Take the First Step

To Financial Freedom

Every bankruptcy case is unique. If you are considering Chapter 7 bankruptcy in Temecula, Murrieta, or Riverside County, contact BankruptcyMan – Attorney David Nelson – for a free consultation. Learn how you can protect your assets, stop creditor harassment, and get a true financial fresh start.

📞 Call (951) 200-3613 or Contact Us today.⚡