Los Angeles Bankruptcy Lawyer
Chapter 7 Bankruptcy Information
Liquidation bankruptcy or Chapter 7 bankruptcy is the most common type of bankruptcy filed in the United States. When most people think about filing for bankruptcy, they are thinking about Chapter 7 bankruptcy. Unlike Chapter 13 bankruptcy, Chapter 7 bankruptcy does not involve any payment plans. However, the greatest downside is that if you have a significant amount of assets, you may be in danger of the bankruptcy court taking control of them and selling them off to pay your creditors. Fortunately for the vast majority of people filing bankruptcy, nothing is ever taken by the bankruptcy trustee.
Chapter 7 bankruptcy has to power to wipe out most debts. Some debts, such as student loans, recent taxes, government fines, domestic support obligations, debts from fraud, and some others are not dischargeable in Chapter 7 bankruptcy. However, the good news is that nearly all other debts will be wiped out by a Chapter 7 bankruptcy. It is always in your best interest to consult with an experienced Los Angeles bankruptcy attorney to find out if you have any debts which you will not be discharged.
Bankruptcy Attorney in Los Angeles, California
Filing for Chapter 7 bankruptcy begins with a determination of your qualification to file Chapter 7 bankruptcy. In order to file Chapter 7 bankruptcy, you must pass the Means Test. The Means Test has several layers to it and is difficult to truly understand. The most important factor in passing the Means Test is the amount of income you have received in the last 6 months prior to your bankruptcy filing. If you have earned less than California’s median income (for a household of the same size) then you qualify. If you have earned more, you may still qualify but your expenses will have to taken into account. The expenses that are allowed to be deducted are determined by the government.
After qualification for Chapter 7 bankruptcy has been determined, a bankruptcy attorney should determined whether or not there any assets in danger of being seized by the bankruptcy court. You may lose some of your assets if your assets exceed the allowable bankruptcy exemptions. This is another important reason why it is imperative to speak to a bankruptcy attorney.
Finally, a determination should be made as to whether there are any debts that may not be discharged with a Chapter 7 bankruptcy.
In most cases, our bankruptcy attorneys can give you a quick assessment in a short 15 minute telephone conversation and also provide you with a quote of our fees. After the short telephone conversation, you can decide on whether or not to file Chapter 7 bankruptcy.
Our bankruptcy attorneys offer free consultations. Contact us to talk to an attorney today or to set up a free consultation at one of our offices.
Our bankruptcy lawyers serve all of Los Angeles County. Our main office is in Burbank, California. We also have branch offices in Pasadena and Valencia (Santa Clarita). Our Los Angeles County bankruptcy lawyers can meet you at the office location that is most convenient for you.