Chapter 7 Bankruptcy Attorney Huntington Beach 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 common alternative for people who wish to declare them bankrupt. In fact, when individuals discuss this topic, it is the bankruptcy as described under chapter 7 of the code of the United States of America. Declare bankruptcy according to Chapter 7 of Bankruptcy Laws is a methodical treatment. Particularly, after the introduction of the new laws in October 2005, now, it has actually ended up being mandatory for you to pas a Means test and go through a credit counseling procedure from a federal government authorized credit-counseling company.

Finding an excellent and knowledgeable bankruptcy attorney especially if you live in Huntington Beach or in a nearby city.

Means Test

First, you need to pass a Means test, where all your earnings and necessary expenses are examined. The means test involves deducting the day-to-day vital expense (the expenditures that you can not live without) from the total earnings on a month-to-month basis. It is just if the output is less than the median income of the state, you can declare bankruptcy under the Chapter 7 of US Bankruptcy Laws. Nevertheless, in case, the output is more than the mean 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 procedure. The function of presenting this action is to assess the real financial situation of the debtor.

The credit counseling firm will check out the monetary information of the debtor and will attempt to help the debtor handle their finances and get it back on track, together with paying the financial obligations that the debtor owe to various financial institutions. If there is any possibility to get the finances of the debtor handled, the debtor will not be able to apply for 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 apply for bankruptcy under chapter 7 in the location where she or he is long-term citizen. If the debtor is running an organization in a particular area, he or she should declare bankruptcy in its primary workplace or primary properties. Overall, the main function of the chapter 7 bankruptcy laws is to help the debtor to get relief from all the debts that she or he currently owes. In this process, the bankruptcy court appoints a trustee, who even more proceeds with the treatment of liquidating all the properties and residential or commercial properties of the debtor.

The money therefore collected is then used to settle the claims of the different financial institutions on top priority basis, if any. The of chapter 7 bankruptcy laws use an opportunity for the debtors to get a clean slate for their financial life, as the bankruptcy code relating to the exact 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 financial institutions in a nearby region.

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