Home and vehicle equity
Values, loans, payment status, and California exemptions must be reviewed together.
Debt relief / Chapter 7
Wipe out debt. Keep moving forward.
Chapter 7 is the faster bankruptcy chapter. It wipes out credit-card debt and other unsecured debt while exemptions can protect the property you rely on.
Immediate relief + lasting discharge
Collection stops. Discharged debt stays gone.
Filing triggers the automatic stay, a federal court order that immediately stops creditor collection activity. When the court enters the discharge, federal law permanently prohibits creditors from collecting discharged debts.
Credit-card debtMedical billsPersonal loansOld utility balancesCivil judgmentsBusiness-related personal debt
Protect the result before filing
The planning matters as much as the paperwork.
Chapter 7 is powerful, but the filing is not the first step. The first step is understanding exactly what the case will do to your income, property, debts, and near-term decisions.
Recent payments or transfers
Payments to family, asset transfers, and unusual transactions should be identified before filing.
Taxes and priority debts
The type, age, returns, assessments, and payment history can change how a debt is treated.
Prior bankruptcy cases
Earlier filings can affect eligibility, discharge timing, and automatic-stay protection.
Business ownership
Inventory, receivables, equipment, guarantees, and entity structure all matter.
Claims and expected money
Lawsuits, settlements, inheritances, refunds, and other rights may be property of the estate.
A Chapter 7 client’s perspective
★★★★★
“Mr. Benjamin Heston did a great job for us, communications were prompt, and thorough, very professional. We provided our required information, and he took care of the rest. A personal Chapter 7 bankruptcy is nothing I would ever want to go through, but Benjamin made it a smooth and painless experience.”
— Thomas
The filing sequence
Prepared first.
Filed with purpose.
- 01
Strategy
Review eligibility, income, household, debts, property, deadlines, exemptions, prior filings, and alternatives.
- 02
Documents
Collect the records needed to prepare complete and accurate schedules, statements, and required disclosures.
- 03
Filing
File the case, activate the automatic stay, provide documents to the trustee, and attend the meeting of creditors.
- 04
Discharge
Complete the remaining requirements and receive the permanent order prohibiting collection of discharged debts.
Chapter 7 questions
Know the answer
before you file.
01Does Chapter 7 wipe out credit-card debt?+
Yes. Chapter 7 wipes out credit-card debt. It also commonly eliminates medical bills, personal loans, old utility balances, and other unsecured debt.
02What is the Chapter 7 means test?+
The means test uses income and allowed-expense data to evaluate eligibility. It is technical and changes over time; it is not simply a comparison of your salary to one number. Nexus will run the current means test when you provide the needed income records.
03Can I keep my home, car, and other property?+
Often, yes. Most individual Chapter 7 cases are no-asset cases. What you keep depends on ownership, equity, liens, California exemptions, payment status, transfers, and the complete facts, so property should be reviewed before filing.
04What happens to collection activity?+
Filing creates the automatic stay, which immediately stops creditor collection activity such as calls, lawsuits, garnishments, levies, foreclosures, and repossessions. At discharge, a permanent federal injunction prohibits collection of discharged debts and can be enforced against creditors that violate it.
05How long does Chapter 7 take?+
A straightforward consumer case often reaches discharge in roughly four months. Missing information, assets, objections, litigation, or prior filings can extend the timeline.
Chapter 7 vs. Chapter 13
Two chapters.
Different jobs.
The best chapter is the one that solves the actual problem while protecting the rest of your financial life.
QuestionChapter 7Chapter 13
Core purposeWipe out dischargeable debt in a shorter caseUse a court-approved plan to solve arrears, protect property, and reorganize debt
Typical timelineSeveral months for a straightforward caseUsually three to five years
Monthly plan paymentNo Chapter 7 repayment planBuilt from the lowest legally supportable payment that can achieve the case goals
PropertyExemptions and equity determine what can be protectedOften used when keeping property or curing arrears is central
Unsecured debtDischarged without a repayment planMay receive only partial payment; the remaining dischargeable balance is wiped out at discharge
Best fitEligibility, income, property, and timing support a faster resetA structured plan produces a better or safer result
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