Chapter 7 Bankruptcy - California Bankruptcy Attorneys
Chapter 7 bankruptcy is typically what most people think of when the term bankruptcy is mentioned. Under a Chapter 7 bankruptcy, any non-exempt assets may be liquidated in order to pay off creditors. Your unsecured debts will be eliminated, and you will have the chance at a fresh start, free from excessive debt and financial obligation. Because Chapter 7 bankruptcy entails liquidation, it is often best suited to individuals who have little or no exempt property, or whose debts are primarily unsecured, rather than those who are facing problems with house payments or tax payments.
Under the new bankruptcy laws enacted in recent years, you must meet certain income restrictions and other guidelines when it comes to qualifying for Chapter 7 bankruptcy relief. Typically, you cannot make more than the average household within your state, and you must not have any disposable income which could be used to repay creditors. In terms of income, the bankruptcy court will use your last six months of employment to determine your income level. This can be troublesome for individuals who have lost their jobs, but who had substantial income prior to the loss. In these types of cases, there are other evaluation methods used.
For individuals who may have had significant income in the past, proving an inability to pay may be difficult without the legal representation and expertise of a qualified California Bankruptcy Attorney. Additionally, if you have engaged in any sale of valuable property and/or possessions within the past year, there may be additional difficulties with proving your case. You should contact our office and schedule a free, no-obligation California Bankruptcy case evaluation as soon as possible in order to get a fully qualified legal evaluation of your present circumstances.
Most Chapter 7 bankruptcies are “no-asset” cases, meaning that the person filing for bankruptcy has no non-exempt assets which can be sold to pay off creditors. This type of case is typically very straightforward, however, if you fail to report even one asset or valuable possession, the bankruptcy trustee may move to have your case dismissed. A dismissed California bankruptcy case means that even if you re-file for bankruptcy, you will not have the full protections of the automatic stay, and creditors would be free to attempt to collect on what you owe. Therefore, it is essential to get proper legal representation as soon as possible before you file for bankruptcy, in order to prevent potential problems down the line. Our firm has years of experience handling both simple and complex Chapter 7 Bankruptcy cases in California, and we are prepared to help you with your case every step of the way. Contact us today and get your free case evaluation – the sooner you contact our offices, the more we will be able to help.