Chapter 7 Bankruptcy
San Francisco Chapter 7 Bankruptcy Lawyer
Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are commonly referred to as "straight bankruptcy" or "liquidation" cases, and may be filed by an individual, corporation, or a partnership. Under chapter 7, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership's or corporation's debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.
Sacramento Chapter 7 Bankruptcy Lawyer
You would generally file Chapter 7 bankruptcy if you wanted to 'wipe out' your unsecured debt when there is no way to pay it off. Most people try to find a way to continue paying on their home and their car if it is prudent to do so. Each person's situation is unique, not everyone may be able to keep their house or car depending on the amount of equity and the expense.
Chapter 7 bankruptcy is the simplest type of bankruptcy and the most common, because most people who file for bankruptcy do not have the means to reorganize their debts and pay them off. Chapter 7 takes only a few months, and the length of time depends on the complexity of the case and how busy the courts are. There are standards set by the districts to determine if you qualify for Chapter 7 bankruptcy by determining if your income is below California's median income. You must meet these standards to file for Chapter 7 and have your debts wiped away. The standards are based on IRS guidelines.
San Francisco Bankruptcy Attorney
If your income is at or over the state's median income level, there are other tests that are applied to see if you qualify for Chapter 7. The tests involve calculating your allowed expenses to determine whether or not you have income available to repay your debts. The calculations to determine whether you can qualify can become complicated and you should seek the advice of attorney to determine what expenses are included in the calculation. The rules change periodically based on decisions from courts and they vary between jurisdictions.
Chapter 7 bankruptcy is not a great option for you if your assets exceed the amounts allowed in the legal exemptions available to you. These exemptions vary from state to state and depend on where and how long you have been living in a location before filing. The exemptions have limitations on how much equity can be protected in property you own. Generally, in California your personal property items are protected and there are protections for retirement accounts, motor vehicle $3,525, jewelry $1,425, tools of trade $2,200, life insurance with cash value $11,800 and a wildcard $23,250. There are also exemptions that apply to houses that have equity depending on family size, age and other factors.
If you are contemplating filing for Chapter 7 bankruptcy, you need to see a lawyer about filing. It is not something that you should try to do on your own. It might seem simple, but it's actually quite complicated. Our Northern California Bankruptcy Lawyers are experienced at completing Chapter 7 bankruptcy filings quickly so that you can have a fresh start and begin your new life debt free.
Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are commonly referred to as "straight bankruptcy" or "liquidation" cases, and may be filed by an individual, corporation, or a partnership. Under chapter 7, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership's or corporation's debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.
Sacramento Chapter 7 Bankruptcy Lawyer
You would generally file Chapter 7 bankruptcy if you wanted to 'wipe out' your unsecured debt when there is no way to pay it off. Most people try to find a way to continue paying on their home and their car if it is prudent to do so. Each person's situation is unique, not everyone may be able to keep their house or car depending on the amount of equity and the expense.
Chapter 7 bankruptcy is the simplest type of bankruptcy and the most common, because most people who file for bankruptcy do not have the means to reorganize their debts and pay them off. Chapter 7 takes only a few months, and the length of time depends on the complexity of the case and how busy the courts are. There are standards set by the districts to determine if you qualify for Chapter 7 bankruptcy by determining if your income is below California's median income. You must meet these standards to file for Chapter 7 and have your debts wiped away. The standards are based on IRS guidelines.
San Francisco Bankruptcy Attorney
If your income is at or over the state's median income level, there are other tests that are applied to see if you qualify for Chapter 7. The tests involve calculating your allowed expenses to determine whether or not you have income available to repay your debts. The calculations to determine whether you can qualify can become complicated and you should seek the advice of attorney to determine what expenses are included in the calculation. The rules change periodically based on decisions from courts and they vary between jurisdictions.
Chapter 7 bankruptcy is not a great option for you if your assets exceed the amounts allowed in the legal exemptions available to you. These exemptions vary from state to state and depend on where and how long you have been living in a location before filing. The exemptions have limitations on how much equity can be protected in property you own. Generally, in California your personal property items are protected and there are protections for retirement accounts, motor vehicle $3,525, jewelry $1,425, tools of trade $2,200, life insurance with cash value $11,800 and a wildcard $23,250. There are also exemptions that apply to houses that have equity depending on family size, age and other factors.
If you are contemplating filing for Chapter 7 bankruptcy, you need to see a lawyer about filing. It is not something that you should try to do on your own. It might seem simple, but it's actually quite complicated. Our Northern California Bankruptcy Lawyers are experienced at completing Chapter 7 bankruptcy filings quickly so that you can have a fresh start and begin your new life debt free.