Usually, people struggle with filing Chapter 7 Bankruptcy San Diego, but that’s mainly due to a lack of proper knowledge about the procedures. By understanding the basics and finding a suitable bankruptcy lawyer in San Diego residents can complete the process with the least hassle.
What Is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy San Diego is one of the most common methods of the bankruptcy filing. It applies to both individuals and specific business organizations. Anyone who passes the Means Test can avail of Chapter 7 benefits and get relieved from various obligations, including unsecured debts, medical expense-related liabilities, and credit card bills. They are also eligible to keep some of their belongings. The entire process only takes three to four months to complete.
Filing your chapter 7 bankruptcy in the District of Southern California Court can be made smooth by a San Diego bankruptcy attorney. To get out of debt in San Diego residents can find many efficient attorneys in any city of San Diego. For instance, a bankruptcy attorney Chula Vista residents approach in their city will be competent enough to help them through all the bankruptcy filing formalities. An introductory consultation is usually free, where one can discuss one’s situation and requirements.
Formalities Involved In The Chapter 7 Bankruptcy Filing
The following are the significant steps involved in the Chapter 7 bankruptcy filing.
- Gathering relevant documents related to one’s financial income and expenses, including assets, income, debts, tax returns, and bank statements
- Attending brief credit counseling sessions from an authorized provider
- Filling out relevant forms and submitting them along with the fees. Debtors who cannot afford the expenses can approach the Society for Legal Aid in San Diego, for assistance.
- Attending the ‘341 Meeting’ with the trustee and attorney
Chapter 7 Bankruptcy Means Test
Anyone opting for a Chapter 7 bankruptcy in California must meet the Means Test requirements stipulated by law. It verifies whether the monthly/yearly income of the debtor is below the median income level. For a single-person household, the monthly earnings must not exceed $5,030. The value increases with the household size and can go up to $12,942.92 for a 10-member family.
Chapter 7 Bankruptcy Exemptions
The Bankruptcy law provides various exemptions for the debtor, helping them keep necessary belongings with them. They include property, car, wages, household goods, electronics, trade-tools, insurance, and pensions. Thus, one doesn’t have to forfeit all by filing bankruptcy.
The Chapter 7 Bankruptcy San Diego filing helps one permanently get rid of the debt burden and make a fresh start. At the same time, a debtor can keep their various assets, including property and car. You can then be on a new track of improving your credit score for a better tomorrow.