Filing for bankruptcy is a great way to get back on your feet if you are deep in debt. When you have to choose between paying your debt off or taking care of your family, a Chapter 7 bankruptcy is a great choice for you.
If you take the help of a bankruptcy attorney San Diego, you can get in control of your organization and get a fresh start in your life. If your case is filed without any flaws, you will get in and out of bankruptcy in a span of 90 days. An experienced Chapter 7 bankruptcy attorney will walk you through the bankruptcy process and guide you through the whole bankruptcy.
What is the Chapter 7 Bankruptcy Process?
In order to qualify for a Chapter 7 bankruptcy process, you need to complete a bankruptcy petition and several bankruptcy schedules that overlook your financial situation.
The schedules should disclose all your financial records which are:
- Income
- Debts
- Assets
And other important financial records. If you hire an experienced bankruptcy attorney, your bankruptcy will go as smooth as possible. You will make one appearance for the meeting of creditors with your attorney and then after 2 months later, you will get a discharge of your debts and your case will be over.
The Automatic Stay
As soon as you file for bankruptcy, the bankruptcy court will order an automatic stay on all your debts until your bankruptcy is over. These include, any foreclosure that was in process, creditor lawsuits or wage garnishment, repossession of assets, tax collection to be put on hold.
This can be a big thing for debtors as they are rid of harassment and pressure from their creditors.
Do You Keep Your Assets?
If you can exempt all your equity and are regular on your loans, you can keep your hours or car. You will lose the house or the car if you are behind on your loans or cannot protect the equity. When you have secured debts such as mortgages or car loans, if you cannot pay them or have the equity, your trustee will sell them to pay off your creditors.
How Do You Qualify for a Chapter 7 Bankruptcy?
Not everyone can qualify for a Chapter 7 debt discharge. In order to file for Chapter 7 bankruptcy, you need to pass the Means test. The bankruptcy filing depends on how much money you can earn and still file for a Chapter 7 bankruptcy. The income limit depends on the state that you are in. For e.g. If you live in San Diego, your income limits are based on the California median income.
- If your income is less than the California median income for your household, you automatically pass. If your income is a little higher than the median income, your bankruptcy attorney San Diego CA will still be able to help you.
- If your income is way higher than the median income, it will be tough to qualify for the means test even with the help of a bankruptcy attorney.
If you do not pass, you will have to file for a Chapter 13 bankruptcy and repay your debts over a long period of time.
Discharge of Debts
After 90 days have passed after you filed the case, a court order known as “discharge” will be given to you to eliminate your debts. This order eliminates the personal liability for debts that you can eliminate your debts.