To find out more about your legal options, contact our office to speak directly to a Santa Clarita Chapter 7 bankruptcy lawyer from Alamdari Law. We can help you understand your rights and determine whether you qualify for this form of bankruptcy. With Chapter 7 bankruptcy, your debts can be discharged in as little as 4 to 6 months. Call (661) 485-3917 to get started.
What Debts Are Eligible for Discharge Under Chapter 7 Bankruptcy?
Not all debts are eligible to be discharged under Chapter 7 bankruptcy, but most forms of unsecured debt and consumer debt qualify. Call today to find out more!
Chapter 7 bankruptcy discharges or wipes out certain debts. Generally, most unsecured debt will be eligible for discharge. Once a debt is discharged under this form of bankruptcy, you will no longer have any obligation to pay it.
Things that can be discharged in a Chapter 7 bankruptcy:
- Unsecured debt
- Credit card debt
- Lawsuit judgments
- Medical bills
- Utility bills
- Personal loans
- Mortgage or automobile loans (but you relinquish rights to the property)
Examples of debts that cannot be discharged include:
- Child support
- Certain court-ordered fines and fees
- Back taxes
- Student loan debt, and more.
When filing Chapter 7 bankruptcy, it is imperative to be honest when disclosing your income and assets as well as any creditors or debts. Prior to filing, you should always discuss your options with a knowledgeable Santa Clarita Chapter 7 bankruptcy lawyer.
Who Does Chapter 7 Bankruptcy Help?
Chapter 7 bankruptcy is designed for individuals who do not have enough disposable income to pay their debts.
Not all people will qualify for Chapter 7 bankruptcy. High wage earners with large amounts of disposable income will likely be ineligible, but may have the option of seeking relief through Chapter 13 bankruptcy.
Chapter 7 bankruptcy is best for people who have limited disposable income and cannot make regular monthly payments toward their debts. Generally, if you earn less than the median income for a household of the same size in California, you will qualify to file Chapter 7 bankruptcy.
If you earn more than the median income you can qualify by completing the “Means Test.” A Santa Clarita Chapter 7 bankruptcy lawyer can help determine if you qualify and assist you in completing the Means Test.