Chapter 7 Bankruptcy Attorney Anaheim CA

You may feel hopeless, and at the mercy of a faltering economy, but don’t despair. Relief is available, and there is no shame in using the law to protect yourself when you are buried under a pile of debt. You aren’t responsible for the economy, and you didn’t create the mortgage crisis. So use the law to protect yourself and your family.

A Second Chance

Bankruptcy laws are in place to help Americans get a second chance when they are snowed under by economic pressures. You have rights, including the right to be free from harassment by creditors. If your creditors are hounding you, you can make them pay. And if your debt has become more than you can manage, you may be able to file for bankruptcy.

The Chapter 7 Bankruptcy Laws are the most typical alternative for people who want to declare them insolvent. In fact, when people talk about this subject, it is the bankruptcy as explained under chapter 7 of the code of the United States of America. Declare bankruptcy according to Chapter 7 of Bankruptcy Laws is an organized treatment. Especially, after the introduction of the brand-new laws in October 2005, now, it has become mandatory for you to pas a Means test and go through a credit counseling procedure from a government authorized credit-counseling company.

Finding an excellent and knowledgeable bankruptcy lawyer especially if you live in Anaheim or in a nearby city.

Means Test

Initially, you have to pass a Means test, where all your income and vital expenses are evaluated. The means test includes subtracting the day-to-day important expense (the costs that you can not live without) from the overall income on a regular monthly basis. It is just if the output is less than the mean earnings of the state, you can file for bankruptcy under the Chapter 7 of US Bankruptcy Laws. Nevertheless, in case, the output is more than the typical income of the state, the bankruptcy court will ask you to file under chapter 13 of the code.

Credit Counseling

Before you go ahead and file under Chapter 7 Bankruptcy Laws, it is important for you to go through a credit counseling treatment. The purpose of presenting this action is to assess the actual financial scenario of the debtor.

The credit counseling company will check out the monetary details of the debtor and will attempt to help the debtor handle their financial resources and get it back on track, together with paying the financial obligations that the debtor owe to different creditors. If there is any possibility to obtain the finances of the debtor handled, the debtor will not have the ability to declare bankruptcy under Chapter 7. In such case, the court will ask the debtor to file under chapter 13 bankruptcy.

When To File Bankruptcy Under The Chapter 7 Bankruptcy Laws

The debtor needs to declare bankruptcy under chapter 7 in the area where she or he is permanent resident. If the debtor is running an organization in a particular location, she or he should declare bankruptcy in its primary place of business or principal possessions. Overall, the primary purpose of the chapter 7 bankruptcy laws is to assist the debtor to obtain relief from all the debts that he or she presently owes. In this procedure, the bankruptcy court designates a trustee, who further proceeds with the treatment of liquidating all the properties and properties of the debtor.

The cash hence collected is then used to settle the claims of the various lenders on priority basis, if any. The of chapter 7 bankruptcy laws provide a chance for the debtors to get a fresh start for their financial life, as the bankruptcy code relating to the same, liquidates all the properties and residential or commercial properties of the debtors after allowing the exemptions, in order to settle the claims of the creditors in a nearby region.

In this manner, the court brings the preferred financial obligation relief for the debtor.