Chapter 7 Bankruptcy Attorney in Irvine, CA
If you or someone you know is going through a difficult financial situation, our Irvine, CA bankruptcy attorneys from The Bankruptcy Group may be able to help. Backed by years of hands-on experience handling bankruptcy cases, our lawyers can help you understand the bankruptcy process and how you can take advantage of its benefits.
To learn more about your case in a free, confidential consultation with one of our knowledgeable bankruptcy lawyers, call our law offices today at (800) 920-5351.
Understanding Chapter 7 in Irvine, CA
Today’s tough economy has left thousands of people submerged in insurmountable debt. This is not only true for hard-working Californians, but also for many people in the country. Facing a difficult financial situation can be stressful, overwhelming, and put you in a state of hopelessness. However, a bad financial break shouldn’t be the end of the road for you. Bankruptcy can be a powerful tool to help you fight against excess debt. One of the most common forms of consumer bankruptcies in the country is Chapter 7 bankruptcy – also called straight or liquidation bankruptcy.
Through Chapter 7, debtors can have a unique opportunity to get rid of most or all their unsecured debt. Unsecured debt refers to all debt that is not secured by collateral, such as credit card debt, personal debt, and other types of debt covered under Chapter 7. It is essential to understand that Chapter 7 may provide relief from excess debt. However, it does not apply to a particular debt, even if these are not secured by collateral. For instance, you may not be able to include debt stemming from child support, alimony, or restitution, among others. A knowledgeable, skilled, and dedicated Chapter 7 bankruptcy attorney can help you answer any questions you may have about Chapter 7.
Qualifying for Chapter 7 Bankruptcy in Irvine, CA
To be eligible for Chapter 7 bankruptcy in Irvine, CA, you need to meet specific requirements set forth under Chapter 7. The first thing you should know is that you will need to go through specific preliminary steps before being qualified under Chapter 7 in California. First, you will need to go through what is known as credit counseling. A government-approved credit counseling agency should perform your credit counseling session. During credit counseling, you will learn different strategies and tips to manage your finances and avoid financial problems moving forward.
Another step in your Chapter 7 qualification process is going through what is known as the “means test.” The means test compares your monthly income with your state’s median income. If your monthly income is above the state’s median income, you will not be able to continue with the process. Chapter 7 places a cap on your income to justify the need for bankruptcy. However, this does not mean you don’t have other options. If you have enough disposable monthly income, but still have financial problems, Chapter 13 may be an option to consider.
Once you have passed the means test, you will continue throughout the process. After the means test, the court will name an administrator who will be in charge of overseeing your Chapter 7 process. Part of the administrator’s responsibilities includes selling the unexempted property and using the proceeds to pay your creditors. After your creditors have been paid, the court can proceed to grant a discharge. Once active, your discharge will wipe most or all of your unsecured debt. This can provide you with the opportunity of rebuilding your finances. Our skilled, experienced Chapter 7 attorneys can help you throughout the complete process.
What Are the Advantages of Filing for Chapter 7?
Many people believe bankruptcy is a challenging process where you will lose everything and be relegated to live on the streets. Unfortunately, many people don’t consider bankruptcy as a viable option to manage excessive debt due to generalized misconceptions. Bankruptcy, especially Chapter 7, can help debtors get rid of most or all of their unsecured debt. Furthermore, there are additional benefits Chapter 7 can provide to all debtors. For instance, once you have received a discharge, you can start building your finances up. This is something that may take you more time if you file under another chapter, such as Chapter 13, which would take you three to five years to complete. Chapter 7 bankruptcy can take up to six months to complete, which gives you the upper hand in rebuilding your finances.
Another advantage of filing for Chapter 7 is that it stops your creditors from collecting debt while your Chapter 7 bankruptcy is underway. Additionally, you will obtain peace of mind knowing you will not be without recourse to manage your debt and rebuild your finances moving forward. Our skilled, experienced, and knowledgeable bankruptcy attorneys can help you understand your rights.
Irvine, California Chapter 7 Bankruptcy Attorneys Offering Free Consultations
Dealing with a difficult financial situation can put you and your loved ones under stress and anxiety. That is why our Irvine, CA Chapter 7 bankruptcy attorneys at The Bankruptcy Group dedicate their efforts to providing nothing but high-quality legal services to all of our clients. Thanks to our years of experience handling cases like yours, we have been able to approach bankruptcy cases strategically and effectively. If you or someone you know is considering filing for bankruptcy in California, our Irvine bankruptcy attorneys can help. To learn more about your case in a free, confidential consultation, call our legal offices today at (800) 920-5351.