Chapter 7 Bankruptcy in Anaheim

Chapter 7

• Liquidates assets to pay debt
• Best option for debt elimination of:
  • Credit cards
  • Medical bills
  • Unsecured debts
• Before filing, you have to qualify through a Chapter 7 Means Test.
  • Your income will be looked at
  • If it is below the median income for California, you will qualify for Chapter 7 bankruptcy protection.
  • If it is higher, the court will calculate your disposable income and unsecured debts.
  • If your disposable income for the next 5 years is less than $6,000, you can file for Chapter 7 protection.
  • If your disposable income is more than $6,000 but less than $10,000, depending on your expenses, you might still be able to file for Chapter 7 protection.
• An individual can only file for Chapter 7 once in an 8-year period.
• Once you file for bankruptcy, your creditors will stop contacting you.
  • The filing fee as of March 1, 2009, is $299.
  • An automatic stay is imposed on any lawsuit that is pending against you.

The bankruptcy court will discharge your obligations to pay the debt – usually takes a few months.

• The discharge will eliminate:

  • Credit card debt

  • Medical bills

  • Any judgments against you

  • Previous tax debts

  • Garnishments

• Non-dischargeable debts include:

  • Child support

  • Student loans

  • Current tax debts

A Chapter 7 discharge is received 60 days after the first meeting with the creditors.

 

 

This site is built and hosted by www.legalberry.com Providing solutions for people looking for lawyers and providing solutions for lawyers looking for clients.