Generally, people dealing with unsecured debt, credit card liabilities, automobile deficiencies, certain back taxes, things like that, if they are having a difficult time paying their credit card debt on a monthly basis, Chapter 7 bankruptcy allows them to get out of that debt.
Chapter 7 bankruptcy is the most common bankruptcy. Sometimes it's referred to as a liquidation or straight bankruptcy, although the great majority of people get through this process without losing any assets because California has a general set of exemptions that allow us to protect property.
In a Chapter 7, we have to show assets are protected and then we have to show that the budget is tight. As long as we can meet those two tests for the most part, then you are eligible to file Chapter 87 where you get discharged of all your unsecured liabilities.
Anyone who is overwhelmed by debt and not able to afford the bills should definitely consider a Chapter 7 bankruptcy. There are income qualifications and other things we'd be looking at.
But people who are saddled with debt are very stressed out and we understand that. And we offer free consultations and we're happy to go through anyone's finances and give them advice on whether they can benefit from Chapter 7.