When your debt is out of control and creditors are incessantly harassing you, consulting an experienced lawyer on qualifying for Chapter 7 Bankruptcy may just save you from your worries. Apart from personal injury and workers compensation matters, Ibrahim Law’s expertise likewise focuses on bankruptcy cases in La Habra, Stanton, Cypress, and all of Orange County, CA. Avoid foreclosures, eliminate credit card debts, and free yourself from unsecured loans, medical bills and collection lawsuits. With our fully capable bankruptcy attorney, you’ll be well guided, well informed, and on your way towards a debt-free future.
Serving Chapter 7 bankruptcy clients from La Habra, Stanton, Cypress, and other neighboring cities in Orange County, California, our lawyer has built an excellent reputation in handling these concerns. When you hire Ibrahim Law Firm, you will gain a dedicated legal partner with impressive credentials and unparalleled knowledge that will benefit you in every stage of the bankruptcy procedure. Our legal services are provided according to your current situation and circumstances. Regardless of your present condition, we will always be considerate, approachable, and responsive to your questions and concerns.
We guarantee that your attorney will meet and guide you through each stage of your case and will explain the legal process in understandable terms, from application to the discharge of your obligations. We will review your particular situation and show you the ideal options to free yourself from the cloud of debt that’s been hanging over you and your family.
Chapter 7 bankruptcy protects debtors from creditors in the collection of debt. It discharges, which essential means eliminates, credit card debt, medical bills, and other unsecured debt. Chapter 7 bankruptcy does not affect secured debts, like mortgages, auto loans, unless you are planning on returning the secured item. If you wish to keep these secured items, you can continue to pay and keep them.
Typically, chapter 7 bankruptcy is filed to eliminate credit card debt. Before deciding whether Chapter 7 is the right answer you must decide whether you qualify, there are certain tests that one must pass. The first test, called the income and expense test, calculates whether you have excess income left over at the end of the month to pay a portion of your debt. We must demonstrate to the bankruptcy court that your expenses on a given month meet or exceed your income on a given month in order to qualify to file for Chapter 7. If there is an excess, then the bankruptcy trustee will not allow you to move forward with a Chapter 7. The court will either dismiss your case or request that you convert your case to a Chapter 13 bankruptcy. To best determine whether you qualify to file, you should speak to our bankruptcy lawyer.
If you have passed the first hurdle, the second hurdle is to pass the “Means Test”, which is based on your income and the amount of dependants living in your household versus the median income for the area that you live in. This particular test is designed to prevent individuals with high level of income to file for Chapter 7 bankruptcy and eliminate unsecured debt (i.e., credit card debt). Once you pass these two tests, you generally qualify to file for Chapter 7 bankruptcy.
However, the next consideration is to determine whether your assets are protected after you file. During a Chapter 7 bankruptcy, the debtor is allowed to keep certain assets, if not all. These are usually considered exempted wherein they cannot be liquidated by the bankruptcy trustee to use as payment for debts. Such properties are clothing, household goods, things used for work, equity in your home or car, and retirements, etc. However, those who plan to file should consult a bankruptcy attorney before proceeding in order to determine whether these assets are able to be kept by the debtor.
The next step to filing for bankruptcy is to take a two courses – one that is taken prior to filing of the bankruptcy petition and the other is taken after the petition is filed. Both courses are required in order for you to receive a discharge. Failure to take these courses will cause your bankruptcy case to be dismissed.
Approximately, one month after the filing of a chapter 7 bankruptcy, you will be in front of a bankruptcy trustee. This individual shall ask you several questions under. Should everything go well during the examination, there is very little that you must do afterwards. It takes approximately 4 to 5 months before you will receive a discharge from the bankruptcy court. Once you receive a discharge, you are no longer able to file another Chapter 7 bankruptcy for 8 years.
To know more information about our bankruptcy attorney, simply call our office at 714-808-0800 or send us an email at Alaa@ibrahimfirm.com. Ibrahim Law also offers legal services for workers compensation, estate planning, and personal injury in Anaheim, La Habra, Stanton, Cypress, and all of Orange County, California.
Ibrahim Law Firm
10231 N.Brookhurst St. Anaheim, CA 92804