Woodland Hills Chapter 7 Attorney
Helping Our Clients Free Themselves from Debt
When you’re in a difficult financial position and owe your creditors a considerable amount of money, filing for Chapter 7 bankruptcy provides a way out. People can slowly accumulate a mountain of debt and find themselves unable to fully pay their credit card bills, or it can happen seemingly all at once when an emergency saddles you with medical costs or forces you to take out a personal loan. For most of your unsecured debts, Chapter 7 can free you from your obligation to pay them back.
Bankruptcy is an intimidating prospect and can come with its own challenges, but by erasing your current debt you’ll be able to create a new foundation to build a more solid financial situation.
What Exactly Is Chapter 7 Bankruptcy?
Chapter 7 is the bankruptcy most every day people think of when considering bankruptcy. It’s what’s commonly known as a liquidation bankruptcy. It can help people with a considerable amount of consumer debt --and too little income to support it--release themselves from their obligations to their creditors.
Common types of debt discharged in Chapter 7 include:
- Credit card balances
- Medical bills
- Personal loans
- Pay day loans
- Past-due utility bills
- Collection agency accounts
- Business debts
Do I Qualify for Chapter 7?
In order to qualify for filing Chapter 7, you must first pass the means test. The means test determines whether or not you have enough disposable income to cover repaying part of your debt. The higher your disposable income, the more likely you will not be able to file for Chapter 7. Instead, Chapter 13 might be a better course for you. The test ensures that those who are eligible for Chapter 7 are the ones who will have the most difficulty paying off their debts.
How to qualify for Chapter 7 bankruptcy:
- You must be an individual, married couple, or a small business owner.
- You cannot have a discharge from a previous Chapter 7 filing in the last 8 years.
- You cannot have a discharge from filing Chapter 13 in the last 6 years.
- In the last 180 days, you cannot have a bankruptcy that was dismissed due to a violation of a court order or fraudulent filing.
- You must have attended a credit counseling course within 180 days before the bankruptcy discharge. If you do not attend it in time, your case will be dismissed.
If you are thinking about filing for bankruptcy to free yourself from debt, a Chapter 7 attorney in Woodland Hills and Los Angeles can assist you throughout the filing process. At JM Law Firm, APC, we’ve helped clients like you get the legal support they needed when it was time for them to rebuild their financial lives. The first step for many is to kick off their existing debt and start fresh.
At no cost to you, we’ll learn about your problems and offer ways in which we can help you move forward.
Contact our firm online and ask how you can arrange a free consultation where you can discuss your situation with one of our attorneys.
Although liquidation can sound frightening, not everything you own can be taken – in fact, more often than not, Chapter 7 bankruptcies end up being “no-asset” cases. These are situations where the debtor isn’t considered to own anything that can be sold off to pay creditors, so liquidation doesn’t occur or does only to a very limited degree. At JM Law Firm, APC our Chapter 7 attorneys are well versed in exemptions, to help you keep as much of your property as possible. Property that can be exempt from seizure includes vehicles up to a certain value, household appliances, a reasonable amount of clothing and household furnishings, equity in your home, your hard-earned retirement fund, tools of your trade, and more. Our debt relief attorneys will take a deep dive into your situation, and make sure you’re aware of any assets that could be at risk before actually filing a case. Our goal is for there to be no surprises.
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