Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a liquidation bankruptcy.  It discharges most unsecured debts like credit cards, medical bills, personal loans, and payday loans.  In order to qualify for a typical consumer Chapter 7 bankruptcy, you must pass a “means test” which takes into account your household income. In most situations, you will also need to show that you have no disposable income to repay your creditors.  If your income is too high to qualify for a Chapter 7, you may want to consider Chapter 13 bankruptcy or debt settlement (see below).  Chapter 7 is a relatively quick process.  You will typically receive a discharge in as little as four to five months after the filing of your case.

A common misconception associated with Chapter 7 bankruptcy is that one cannot keep any assets if filing a Chapter 7.  Most people are able to keep their cars, house, pension fund, furniture, jewelry, and other assets of value, which an experienced bankruptcy attorney can protect through exemptions. Another misconception is that if one has income that’s too high, that’s an automatic disqualification from a Chapter 7.  Certain situations allow for Chapter 7 eligibility despite high income. For example, if a debtor is deemed to have mostly “nonconsumer” debt such as business debt or medical debt, he or she may qualify for a Chapter 7 without having to pass the means test.  This is why it’s crucial to discuss all alternatives with an experienced bankruptcy attorney.

Contact Us Today!

If you or any of your loved ones need help with or are currently considering filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, contact Karadjian & Escobar, P.C. today.  We offer consultations free of charge.  Your case will be personally handled by an experienced, caring attorney from start to finish.  We have offices throughout Southern California for your convenience.  We can meet you at our offices in Orange County (Irvine) or Los Angeles County (Glendale or Van Nuys in the San Fernando Valley).  We can meet you during weekends, early mornings, or late evenings if typical office hours don’t work for you.  If we don’t have an office near you, we can meet you at your home or a local coffee shop if you prefer (coffee on us!).  We look forward to getting you back on your feet as quickly as possible. Contact us at 323.426.8300, 949.705.4630 or 818.574.1202. You can also reach us via email at contact@kelawfirm.com.