California Chapter 7 Bankruptcy FAQ

California Bankruptcy FAQ

If you have more bills than you can afford to pay, you're likely feeling overwhelmed and frustrated with your finances. While getting ahead on your payments and stopping the collection calls can seem impossible, you may be able to do just that with the help of a skilled California bankruptcy lawyer. Here's what you need to know about Chapter 7 bankruptcy and how it can help.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a type of bankruptcy that is designed to eliminate as much of your debt as possible. If you qualify for this type of bankruptcy, the court will determine what, if any, non-essential assets you have, and will liquidate them in order to satisfy your debts. Any remaining unsecured debt after the liquidation process will be discharged. If you have student loans or other secured debts, they will remain intact after the bankruptcy and you will still need to make payments on them. However, unsecured debts like medical bills and credit card debt will likely be discharged and you will no longer owe those debts. Chapter 7 bankruptcy is one of the easiest ways to get rid of your debt and start over fresh with a clean financial slate.

How Do I Know Chapter 7 Bankruptcy is Right For Me?

There are some qualifications you must meet in order to be eligible to file for a Chapter 7 bankruptcy in California. For example, your income must be lower than the median income for a family of your size. If you meet this criteria, you are automatically approved to file a Chapter 7 bankruptcy. In some cases, families that are over this income limit can still file if they can demonstrate that they have an exceedingly large amount of debt. A seasoned California bankruptcy lawyer can assist you in determining whether Chapter 7 bankruptcy is right for you by helping you to complete a means test. A means test will examine your income, debt and assets, and will help you decide whether a Chapter 7 bankruptcy is a viable option for you.

Contact an Experienced California Bankruptcy Attorney Today

While online or "no attorney" bankruptcies are being filed every day, doing so is taking a significant risk with your financial future. Failure to fill out the bankruptcy forms correctly or not claiming certain property as exempt could cause you to lose your valuables and may even cause your bankruptcy to be denied. It is always in your best interest to contact a Corona bankruptcy lawyer to discuss the option of filing for bankruptcy and to obtain assistance with filing. Your attorney can guide you through the process of filing for a Chapter 7 bankruptcy, and will ensure that your forms are filled out properly.

At Farhat Law Firm, APC, we have assisted many individuals and families who have overwhelming debt by working with them to file a Chapter 7 bankruptcy. We can apply our skills, experience and resources to your case, and give you the best chance of coming out ahead after your bankruptcy. Contact us today at (951) 808-0529 to schedule a consultation to discuss your finances. We're here to help you.