Dedicated Attorneys Help Clients Make a Fresh Start with Chapter 7
Experienced bankruptcy lawyers walk you through the process
At Sadeghi & Associates in Irvine, California, we’ve seen that filing Chapter 7 bankruptcy can be a huge relief for those dealing with creditors threatening lawsuits, possible home foreclosure or impending vehicle repossession. Often called liquidation bankruptcy, Chapter 7 allows you to wipe out debt so you can move on with your life. If you reside in Los Angeles, Orange or Riverside county, we can help you every step of the way, making sure you understand your rights and obligations under the bankruptcy laws.
Determining if you are eligible for Chapter 7 bankruptcy
To qualify for Chapter 7 bankruptcy, you must pass the means test, which is a demonstration that your average monthly household income is less than the median income for a household of similar size in California. If your median income is higher, you must show that your total annual disposable income (after deducting certain necessary expenses) is not enough to pay back at least 25 percent of your unsecured debt over a five-year period. We can look at your situation to determine if you are eligible for Chapter 7.
Understanding how Chapter 7 affects your situation
With Chapter 7 bankruptcy, most unsecured debts can be discharged. Exceptions include child support, certain taxes and student loan debt. You also receive the protection of an automatic temporary stay that forces all creditors to cease taking any collection actions against you as soon as you file bankruptcy. While the stay is in effect, your home cannot be foreclosed upon, your car cannot be repossessed, your wages cannot be garnished, and lawsuits and collections efforts must stop. And, creditors are no longer allowed to call or harass you. Instead, they must communicate through the bankruptcy court.
Also, in California, certain assets are protected from being sold to satisfy creditors. Retirement accounts and other ERISA-protected plans are generally exempt. You are also entitled to exempt the equity in your home up to a certain limit, which in California varies from $75,000 to $175,000 depending on your age, health and familial status. Our firm is familiar with all the nuances of Chapter 7 bankruptcy and will help you obtain all the protections and benefits to which you are entitled.
Contact California Chapter 7 bankruptcy lawyers for a free consultation
For help filing Chapter 7 bankruptcy, look no further than Sadeghi & Associates in Irvine, California. For a free consultation, call us at 949-668-1367 or contact us online.