Los Angeles Bankruptcy Lawyer
What is Chapter 7 Bankruptcy?
Individuals may file for bankruptcy in a federal court under Chapter 7 ("straight bankruptcy", or liquidation). In a Chapter 7 bankruptcy, you are allowed to keep certain exempt property. The value of the property that can be claimed as exempt is different for each state. If you have other assets other than those that are exempted, these are sold, or liquidated, by the Trustee to repay creditors. The types of debts which you can include in a Chapter 7 bankruptcy include personal loans, credit card bills, medical bills, even utility bills. However, certain debts cannot be discharged through bankruptcy, and include:
- Child support
- Alimony payments
- Most student loans
- Income Tax debt
- Court-ordered fines or penalties
- Property Taxes
Chapter 7 bankruptcy allows people in debt without the means to repay it to get a fresh start. The process can take several months and during this time no creditors or collection agencies may contact you and attempt to collect their debt. Once your bankruptcy is completed, you will no longer owe the discharged debt.
If you are in the condition of having crushing debt and are considering a bankruptcy filing, it is important you contact a bankruptcy attorney from Pacific Attorney Group. With the help of a skilled bankruptcy lawyer, the best course of action for you will be worked out. Contact Pacific Attorney Group to allow them to help you make the best decision for your situation.
Bankruptcy Attorney in Los Angeles
If you find yourself in financial trouble, the Federal Bankruptcy laws are in place to help you get out of the situation you are in. With the assistance of a professional attorney you have the opportunity to file for bankruptcy and make a new start. However, not all individuals qualify for this type of bankruptcy. A "means test" must be passed to find out if you meet the criteria to file for Chapter 7 bankruptcy or whether Chapter 13 is what is needed. The requirements to qualify for Chapter 7 have been stiffened since 2005, therefore you now have to show whether you have the "means" financially to pay off your debt or not. Fraudulent use by individuals with enough income to pay off their debts who chose to file bankruptcy was one of the reasons these restrictions were imposed.
You are required to receive pre-bankruptcy financial counseling before the filing will be allowed. Because of the complexities and new standards to qualify, as well as exempt property and debt to consider, it is very important that you meet with a bankruptcy attorney from Pacific Attorney Group prior to taking the means test. It is important that your bankruptcy petition is filed correctly so as not to cause delays or a denial of your filing. Call us for your free consultation.