Chapter 7 Bankruptcy Attorney San Francisco 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 option for people who want to declare them insolvent. In fact, when individuals talk about this topic, it is the bankruptcy as explained under chapter 7 of the code of the United States of America. Filing for bankruptcy based on Chapter 7 of Bankruptcy Laws is a systematic procedure. Especially, after the introduction of the new laws in October 2005, now, it has ended up being mandatory for you to pas a Means test and go through a credit counseling process from a government approved credit-counseling firm.

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

Means Test

First, you have to pass a Means test, where all your earnings and necessary expenditures are examined. The means test includes subtracting the daily vital expense (the costs that you can not live without) from the overall earnings on a monthly basis. It is just if the output is less than the median income of the state, you can apply for bankruptcy under the Chapter 7 of US Bankruptcy Laws. Nevertheless, in case, the output is more than the average income of the state, the bankruptcy court will ask you to file under chapter 13 of the code.

Credit Counseling

Before you go on and file under Chapter 7 Bankruptcy Laws, it is vital for you to go through a credit therapy treatment. The function of introducing this action is to examine the real financial situation of the debtor.

The credit therapy company will check out the financial information of the debtor and will aim to help the debtor manage their finances and get it back on track, together with paying the financial obligations that the debtor owe to various lenders. If there is any possibility to obtain the financial resources of the debtor managed, the debtor will not be able 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 location where she or he is long-term citizen. If the debtor is running a service in a particular area, he or she should declare bankruptcy in its principal business or primary properties. In general, the primary function of the chapter 7 bankruptcy laws is to assist the debtor to obtain remedy for all the debts that she or he currently owes. In this procedure, the bankruptcy court appoints a trustee, who even more goes on with the treatment of liquidating all the properties and residential or commercial properties of the debtor.

The cash thus gathered is then utilized to settle the claims of the different creditors on top priority basis, if any. The of chapter 7 bankruptcy laws use an opportunity for the debtors to get a new beginning for their financial life, as the bankruptcy code relating to the same, liquidates all the properties and properties of the debtors after allowing the exemptions, in order to settle the claims of the creditors in a nearby region.

By doing this, the court brings the desired financial obligation relief for the debtor.