Are you drowning in credit card debt? Is your mortgage more than the value of your home (commonly referred to as being ‘upside-down’)? Home Equity line of credit or 2nd mortgage maxed out? Are creditors harassing you? Maybe you’ve already been sued or collection agencies are trying to garnish your wages. You may be feeling guilty, scared, embarrassed or a mixture of all of these. If this sounds like you, it’s time to talk with a Chapter 7 bankruptcy lawyer.

Filing for chapter 7 personal bankruptcy can be a difficult decision, but you don’t have to do it alone. My office will give you personal attention and guide you through this difficult process. Our office will work with you to determine if you qualify under the Chapter 7 means test to have most or all of your debts wiped clean. The Chapter 7 process can be overwhelming. We can explain the Chapter 7 exemptions, the Chapter 7 discharge, and what types of assets after bankruptcy you may be able to keep. Voluntary bankruptcy can provide the fresh start you need. Start your life after chapter 7 bankruptcy by calling our office today.

You need a fresh start and we can help. Contact us today to schedule a free bankruptcy consultation. Chapter 7 Bankruptcy may be the right choice for you.

Interested in reading more about the bankruptcy process? Click here to help decide if it’s right for you

Frequently Asked Questions

1. Can I keep both of my cars?

2. What will happen to my IRA’s or other retirement investments?

3. How much of my savings can I keep?

4. How long does the process take?

5. Do I qualify for Chapter 7?

1. Can I keep both of my cars?

The short answer is probably. Each state creates their own system to determine how much of your property you can keep in bankruptcy. California has two separate systems from which you can choose. This choice will generally depend on whether you have equity in your home or not. If you don’t own a home, or are upside-down like so many others today, the ‘homestead’ exemption can be applied to other property you wish to keep. Although this system only allows you to keep a car valued at no more than $2,925, you can apply some or all of the $20,725 ‘homestead’ exemption plus another $1,000 wildcard exemption towards your vehicles. Because each situation is different, schedule a free consultation with our office today so we can help you through the process.

2. What will happen to my IRA’s or other retirement investments?

Whether you have retirement savings in a 401(k), 403(b), an employer profit sharing plan, or IRAs the entire balance of each type of account you own is considered exempt and will remain your property following your Chapter 7 discharge. The one exception to this rule is that for traditional and Roth IRAs, the exemption only applies to the first $1,095,000.

3. How much of my savings can I keep?

The value of your savings, checking, or other non-retirement accounts are not generally considered exempt from the bankruptcy trustee. It is important to know how to apply the exemptions that may be available to you in order to preserve as much of your accounts balances as possible. Depending on the source of the income, various exemptions may allow you to keep the entire account balance. It is also possible that a wildcard exemption could be used so you can keep all of your money. Schedule a free consultation with our office today so we can review your specific situation and help you retain your property.

4. How long does the process take?

The Chapter 7 bankruptcy process begins by filing a ‘petition’ with the court. This lists all of the details the court needs to handle your case. From the time the petition is filed until the court finalizes the bankruptcy, known as a ‘discharge’, is usually about 120 days.

5. Do I qualify for Chapter 7?

In 2005 the bankruptcy laws were changed and a ‘means test’ was established to determine whether bankruptcy filers could use the Chapter 7 process. Determining whether you qualify under the ‘means test’ to file for Chapter 7 bankruptcy is based on many factors, including the size of your household, total household income, and the total amount of your debt. After you subtract your debt from your income what remains is called your ‘disposable income’. Each state has different levels, based on its cost of living, to determine how much disposable income you are allowed to have and still qualify under the means test. A free consultation with our office is the quickest way to find out if you qualify to have your debt erased and get the fresh start you need.