Chapter 7 Bankruptcy Attorney Santa Rosa 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 option for people who wish to declare them bankrupt. In fact, when individuals speak about this topic, it is the bankruptcy as explained under chapter 7 of the code of the United States of America. Declare bankruptcy based on Chapter 7 of Bankruptcy Laws is a systematic treatment. Particularly, after the intro of the new laws in October 2005, now, it has actually become compulsory for you to pas a Means test and go through a credit therapy process from a government authorized credit-counseling agency.

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

Means Test

Initially, you need to pass a Means test, where all your income and important expenditures are evaluated. The means test includes deducting the daily important expense (the expenses that you can not live without) from the total income on a regular monthly basis. It is just if the output is less than the average earnings of the state, you can file for bankruptcy under the Chapter 7 of US Bankruptcy Laws. However, in case, the output is more than the average earnings of the state, the bankruptcy court will ask you to file under chapter 13 of the code.

Credit Counseling

Prior to you proceed and file under Chapter 7 Bankruptcy Laws, it is essential for you to go through a credit therapy procedure. The purpose of presenting this step is to assess the real monetary circumstance of the debtor.

The credit counseling agency will check out the financial information of the debtor and will aim to assist the debtor handle their financial resources 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 get the finances of the debtor managed, the debtor will not be able to file 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 must declare bankruptcy under chapter 7 in the location where he or she is irreversible resident. If the debtor is running a service in a particular area, she or he ought to declare bankruptcy in its principal workplace or primary properties. In general, the primary purpose 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 designates a trustee, who further goes on with the treatment of liquidating all the properties and residential or commercial properties of the debtor.

The money thus gathered is then used to settle the claims of the numerous creditors on priority basis, if any. The of chapter 7 bankruptcy laws offer a chance for the debtors to get a new beginning for their financial life, as the bankruptcy code regarding the same, liquidates all the properties and residential or commercial properties of the debtors after enabling the exemptions, in order to settle the claims of the lenders in a nearby region.

This way, the court brings the desired debt relief for the debtor.