Roseville Chapter 7 Bankruptcy Attorneys
Understanding How Chapter 7 Bankruptcy Works in California
Under Chapter 7 bankruptcy, most debts can be discharged (liquidated) if the debtor sells assets to repay the debt. The purpose of Chapter 7 bankruptcy is to give debt relief to a person with substantial debt that could never be repaid within a reasonable time. Essentially, Chapter 7 bankruptcies give financially disenfranchised individuals the opportunity to have a fresh start.
Although bankruptcy laws in the U.S. changed in 2005, eligibility requirements for individuals interested in filing for bankruptcy have remained largely the same. If you need debt relief, contact a lawyer at Cecil Cianci Law, PC about your eligibility to file for Chapter 7 bankruptcy.
Contact (916) 675-3866 for a free bankruptcy consultation with an attorney.
Chapter 7 Bankruptcy Requires a Means Test
Are you eligible to file for Chapter 7? Under the new law, you must pass a Means Test to be eligible for a Chapter 7 discharge. The means test uses a variety of factors, such as income, to determine whether you qualify for Chapter 7 bankruptcy. However, most individuals are still eligible, even under the new law. Talk to us before you take the Means Test.
Additional factors may apply in your situation, and many individuals and attorneys do not understand how to complete the Means Test correctly. If you have been told you do not pass the Means Test, call for a free consultation with attorneys who have experience with high-income individuals like Cecil Cianci Law, PC. We will help you determine if you are eligible for a Chapter 7 bankruptcy.
How Will Chapter 7 Bankruptcy Affect My Assets and Debts?
Most debts can be discharged or liquidated under Chapter 7.
However, there are a few debts that cannot be discharged by Chapter 7 bankruptcy, including, but not limited to, child support, spousal support (alimony), certain tax claims, government fines and penalties, government-backed education loans. Talk to an attorney about what can or cannot be discharged in your chapter 7 bankruptcy.
Exempt property from liquidation (your assets that you can keep).
Determining which exemption track to use is one of the most important decisions to make when contemplating filing a Chapter 7 bankruptcy. You do not have to liquidate all property in a Chapter 7 bankruptcy filing. In most cases, you will not have to liquidate any property in your bankruptcy case. There are exemptions, including your home and car (up to a certain value).
Other exemptions (property you can keep) include pensions, health benefits, appliances, furniture, clothing, health aids, and possibly a wild card exemption that can be used on any property you own. For a complete list of what you can keep, talk to a bankruptcy attorney who can explain debtor exemptions and their limits.
As soon as you file for Chapter 7 bankruptcy, collection efforts will stop.
When you can't afford to pay your bills, calls and letters from creditors just make your situation even more stressful. As soon as we file your bankruptcy petition, we will inform your creditors. Collection efforts, repossessions, and foreclosures will stop. You can begin to deal with the situation with less pressure and more hope for the future.
Your first bankruptcy consultation with one of our Roseville bankruptcy attorneys is free! Contact us online or give us a call at (916) 675-3866 to learn more about how we can help you resolve your bankruptcy and get a fresh start with your finances.