Orange County, CA Chapter 7 Bankruptcy Attorney
If you or a loved one is considering filing for bankruptcy due to financial difficulties, the California bankruptcy lawyers at The Bankruptcy Group may be able to help. With decades of combined experience, we can put our knowledge to work for you in your time of need.
Let us work with you and help you file for bankruptcy in California. To learn more about your options in a free, confidential consultation, call our law offices today at 1-800-920-5351.
How Chapter 7 Bankruptcy Works
Chapter 7 bankruptcy is one of the most common types of consumer bankruptcies. Every year, thousands of people utilize this federal provision to help them push through difficult financial situations using a bankruptcy discharge. A discharge can provide debtors with the opportunity to wipe most or all of their unsecured debt.
Unsecured debt is debt that is not backed by collateral. For instance, your home would be the collateral securing your mortgage, at least until you pay off your loan. Things like credit card debt and other similar debt fall in the unsecured debt category. The discharge of this kind of debt is what makes Chapter 7 bankruptcy so attractive to people facing financial hardships.
While Chapter 7 can be a useful tool for consumers struggling with vast amounts of debt, not every petitioner will automatically qualify for it. Qualifying for Chapter 7 requires you to meet specific criteria; for instance, you will be required to go through a credit counseling course. As a debtor, you will receive education from a government-approved credit counseling agency to help you pinpoint the cause of your financial difficulties and better understand how to avoid similar mistakes in the future.
Another core requirement is going through a means test. This test will determine whether you can continue through the Chapter 7 process. The way it works is simple: the court will compare your monthly household income with your state’s median income. If your income is lower than the median, you will likely qualify for Chapter 7.
Once qualified, you will go through the liquidation process of this bankruptcy. During this stage, a court-appointed trustee will be in charge of selling all of your unexempted property. Once sold, the trustee will divide the proceeds equally among your creditors. Once this process is complete, you will be granted a discharge from any remaining debt.
The entire Chapter 7 bankruptcy process can take up to six months. Our Orange County bankruptcy attorneys have extensive experience handling Chapter 7 cases just like yours and are ready to guide you through the process from start to finish.
The Advantages of Chapter 7 Bankruptcy
As a debtor potentially filing for bankruptcy, you may wonder what benefits you will obtain when filing for Chapter 7. Fortunately, you will be relieved to know that filing for bankruptcy can bring many benefits, especially if you are considering Chapter 7. One of the main benefits is that this process is faster than that related to other bankruptcies. As mentioned before, you can get a discharge in as little as six months.
Furthermore, unlike Chapter 13, Chapter 7 does not require you to devise an intricate repayment plan to pay your creditors back. This can save you time and stress along the way. Another great benefit of filing for Chapter 7 is that all the income you get once you have filed for bankruptcy will be yours and will not be counted for Chapter 7 purposes. However, there may be some property that will be included as part of your straight bankruptcy. A skilled, knowledgeable, and an experienced bankruptcy attorney can help you understand so you can make an informed decision.
Finally, you will get the benefit of having a fresh financial start. A Chapter 7 discharge will wipe most of or all of your unsecured debt, allowing you to rebuild your finances. While filing for bankruptcy may seem like a scary or drastic step to take, the benefits you can obtain through it should offset any fears you may have. Our Orange County bankruptcy attorneys are ready to provide you with the legal counsel you need to navigate your bankruptcy case.
Orange County Bankruptcy Attorneys Offering Free Consultations
Few things compare to the stress and fear that a terrible financial situation can cause. That is why the California bankruptcy attorneys at The Bankruptcy Group work tirelessly to provide high-quality legal services to all of our customers. Thanks to our many years of experience handling Chapter 7 cases like yours, we can guide you through the entire process, from the initial filing of paperwork to your eventual discharge. Don’t let a financial setback take over your life. To speak to a professional about your case in a free, confidential consultation, call our law offices today at (800) 920-5351.