• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Sunday, October 1, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
chapter-7-bankruptcy

Chapter 7 Bankruptcy: Is it an Option for You?

Chapter 7 bankruptcy isn't right for everyone. You need to ask yourself if you have more debt than you are capable of repaying based on your income and your assets.

by California Business Journal Editorial Staff
A A
Share on FacebookShare on Twitter

If your current income level and assets are not sufficient for you to be able to pay your debts in full, Chapter 7 bankruptcy may be right for you.

Chapter 7 Bankruptcy Explained

When you file for bankruptcy, you will need to be forthcoming about your finances. You will not be able to hold anything back. The application will ask you how much money you are earning right now, how much money you are spending right now, how many assets you own, and how much money you owe your creditors. You will also need to provide tax returns and paycheck stubs.

The court will appoint a trustee to your case, and they will look over your documents. You will need to meet with your trustee so that they can ask you questions about the information in your application.

After a couple of months have passed, the bankruptcy court will send you a letter in the mail. This letter will let you know whether or not your bankruptcy was accepted and finalized. If you met all the requirements and were completely honest in your answers, your bankruptcy will most likely be accepted.

ADVERTISEMENT

Debts that Can Be Discharged in Chapter 7 Bankruptcy

Chapter 7 bankruptcy can discharge many unsecured debts. They can include:

  • Utility bills
  • Judgments from debt collection efforts
  • Payday and personal loans
  • Medical debts
  • Credit card debts

Chapter 7 bankruptcy The minute that you file for bankruptcy, your creditors will no longer be able to collect on the debts described above. You will have an “automatic stay” that prevents these creditors from attempting to collect these debts. This is the great advantage of filing for bankruptcy.

According to the Ghai Law Firm, creditors will also stop making collection calls to your home and workplace, which in itself can be a huge relief.

Debts That Cannot Be Discharged in Chapter 7 Bankruptcy

There are also debts that a Chapter 7 bankruptcy cannot discharge. These include:

  • Student loans
  • Recent governmental fines and tax debts
  • Alimony payments
  • Child support payments
  • Home and auto loans

Can I Qualify For Chapter 7 Bankruptcy?

You qualify for Chapter 7 bankruptcy if you are earning less than the median income for your state. According to the bankruptcy laws, you must pass the means test to qualify to file for bankruptcy, and if you make less than the median income for your state, you will pass this test.

You qualify for Chapter 7 bankruptcy if you are making close to the minimum wage, and if you aren’t currently working, you qualify as well.

You do not qualify to file for bankruptcy if you don’t pass the means test. In this case, you may file for Chapter 13 bankruptcy. An experienced lawyer will be able to tell you more about that.

Should I File for Bankruptcy?

If you have large purchases on your credit cards or you need to use them to pay for things like groceries, you shouldn’t file for bankruptcy right now. You should concentrate on paying your most recent debts in full. If you paid a debt in full or transferred property to a family member, you will also need to wait to file for bankruptcy. The reason is that you will have to let your trustee know about these actions. Your lawyer can help you decide if the time is right to file Chapter 7 bankruptcy.

 

 

 

 

 

Tags: bankruptcycreditorshonestinformationlawlaw firmlawyerloansmedicaltax
ADVERTISEMENT
California Business Journal Editorial Staff

California Business Journal Editorial Staff

Related Posts

Scales of Justice in the Courtroom
Overseas Legal Files: When You Need an Insolvency Lawyer in Sydney
Scales-of-justice-bk-v-debt-settle
Debt & Bankruptcy Laws by State: How Does California Compare?

CBJ Newsletter

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram Youtube
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • More Truth About Temu: Is Temu A Chinese Company?

    The Truth About Temu: Where Is It From?

    0 shares
    Share 0 Tweet 0
  • How to Get Free Stuff on Temu (The EASIEST Methods Explained)

    0 shares
    Share 0 Tweet 0
  • Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    1 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • 30 Best Temu Alternative Apps To Buy from Online

    2 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0

Latest Articles

Google Tests New Platform “Playables”

Maximizing Potential: How Assessment Training Drives Business Excellence

How Small and Large Businesses Develop Employees: 5 Key Differences

From Vision to Reality: Overcoming Challenges as a CEO in Today’s Business Environment

USA’s Betting Frontier: Kentucky Launch News and Status Updates

Stop Researching Products That Don’t Exist Yet

5 Fun Things to Do Outdoors by A Fire Pit

Which Gaming Platforms are the Most Popular?

Bitcoin’s Latest Performance and Future Prospects

6 Ways in Which Students Can Get Help With Their Math Assignments

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR