Chapter 7 Bankruptcy is Relief from Debt or liquidation.
When the US Constitution was written, our founding fathers thought the right to file bankruptcy was so important that they established Bankruptcy before even considering the freedom of speech or religion.
Chapter 7 Bankruptcy is referred to as “liquidation” or “no asset case”. In Chapter 7, debtors do not repay their debts like in Chapter 13. Instead, the trustee will liquidate (convert to cash by selling) any assets that are not protected by exemptions allowed under California Code of Civil Procedures Section 703 or 704. The trustee will also make distributions to creditors. Whatever debt remains after this process will be discharged or wiped out.
If a debtor’s income exceeds certain thresholds (median income) after all applicable deductions, then the debtor may not be eligible for Chapter 7 Bankruptcy relief and will have to file a Chapter 13 Bankruptcy instead.
Find Out More About Your Bankruptcy Options
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.
What Is the Chapter 7 Bankruptcy "Means Test"
The bankruptcy means test determines who qualifies to file for debt forgiveness through Chapter 7 Bankruptcy.
The Means Test takes into account your income, expenses and family size to determine whether you qualify for complete debt relief.
At Alamdari Law, We have been able to qualify many of our clients, even though their income at first glance is beyond the means test limits. In California you must make less than $101,315 total for a family of 4; however, we are often able to apply deductions to the your income and bring your net income within the means test.
The exceptions to the means test are disabled veterans who incurred most of their debts while being deployed, reservists, and members of the National Guard that have been called to active duty before filing for Chapter 7 Bankruptcy. Even with all our efforts some of you will not qualify for Chapter 7 Bankruptcy, that is when we have to look at Chapter 13 Bankruptcy.
What Are the Benefits to Filing Chapter 7 Bankruptcy in California?
Chapter 7 bankruptcy can give an individual a fresh start by discharging their unsecured and consumer debts.
With a Chapter 7 bankruptcy, you are released from liability related to any debts that are discharged. This means that you are no longer obligated to pay those debts. For individuals with large amounts of credit card debt, medical bills, or other forms of consumer debt this can provide a huge amount of financial freedom.
Other benefits of filing Chapter 7 bankruptcy:
- Future income is not affected
- Stops lenders from aggressive collection actions
- You may not have to forfeit all of your assets
- No repayment plan is required
Contact our office to speak to a Santa Clarita Chapter 7 bankruptcy lawyer today to discuss how you can get the fresh financial start that you need.
Chapter 7 bankruptcy is a Complete Protection, STOP the Calls
We will STOP the harrassing phone calls and letters! We will get you back on track to financial security!
From the moment a bankruptcy petition is filed with the courthouse you are an automatic injunction or “stay” goes into effect. It means that from the moment of filing creditors must stop all attempts to collect from you. They cannot sue you. They cannot foreclose against your house, garnish wages, repossess cars or even call you on the phone. If they do, they are in contempt of court.
We believe in giving each client personal attention, honest communication and a holistic approach to resolving the issues surrounding your case.
Contact Alamdari Law Today for Skilled Legal Help with Chapter 7
Discharging your debts through bankruptcy can be a confusing and complex process. At Alamdari Law, we are committed to helping consumers understand their rights. We provide clients the resources and guidance they need to make an informed choice about getting out of financial hardship. Contact our office at (661) 485-3917 to speak with a Santa Clarita Chapter 7 bankruptcy lawyer.