Bankruptcy
Chapter 7 and Chapter 13; what you keep, what gets discharged, and what to expect.
How I help
I am Thomas McNally, a California attorney with more than 40 years of legal experience. I provide a high level of professional and personable service to clients in Marin County as well as to clients in the surrounding Bay Area counties, including Sonoma, Napa, Contra Costa and San Francisco.
Through bankruptcy proceedings, I have helped a multitude of clients get the fresh start they deserve. As your attorney, I will explain your options for bankruptcy and carefully examine your situation to see if you qualify. If bankruptcy is right for you, I will guide you through the process in a compassionate and nonjudgmental way.
What I help with
- Chapter 7 Bankruptcy Eligibility, exempt property, the means test, debt discharge.
- Chapter 13 Bankruptcy Repayment plan, mortgage arrears, keeping assets.
Chapter 7 and Chapter 13
Chapter 7 is often referred to as a "straight" or "liquidation" bankruptcy. The debtor retains exempt property, while non-exempt property is sold by a trustee appointed to oversee the case. In the majority of Chapter 7 cases, no proceeds are actually paid to unsecured creditors because most debtors' assets are exempt or fully encumbered. A Chapter 7 debtor receives the most extensive discharge of unsecured debts, with no requirement of repayment, often known as a "fresh start." This chapter is used most frequently to eliminate credit card debt, medical expenses, and other delinquent bills. A potential candidate must satisfy certain financial requirements, including a "means test," to qualify for a Chapter 7 discharge. I will review your individual financial situation and share my analysis of your eligibility. A Chapter 7 case is the quickest and least expensive bankruptcy, generally taking about four to five months from filing to discharge.
Chapter 13 is often referred to as a "debt reorganization" or "wage earner's plan." In a Chapter 13 proceeding, there is an adjustment of debts for a debtor with regular income. The debtor can keep all their property, retain sufficient income to pay necessary living expenses during the term of the plan, restructure their debts, and provide for payments to creditors over three to five years. At the end of the repayment period, any remaining dischargeable debt is wiped away. A Chapter 13 debt reorganization is often the best available option for debtors dealing with harassment by the IRS or threats of foreclosure or repossession of property.
Ready to talk it through?
Tom reads every message personally and usually replies within a few hours.