Whittier Chapter 7 Bankruptcy Attorney Delivers Results
Regardless of whether you are a business or individual, dealing with a mounting debt crisis can cause a lot of fear and uncertainty about the quality of your future. Moreover, it can also affect your ability to provide for your family or meet important payroll and other essential business obligations.
While there are a number of different bankruptcy actions to choose from, the most popular form is Chapter 7, also referred to as liquidation bankruptcy. However, a debtor does not automatically qualify under this type of bankruptcy action. Specifically, the individual or corporation must satisfy the requirements of the Mean’s Test, which is a formulaic method used by bankruptcy attorneys to determine whether a debtor has sufficient means to manage their finances. For those that do not meet the criteria under this test, there are alternatives such as Chapter 13 bankruptcy that can help you deal with your mounting debt situation.
If you ultimately pass the Mean’s Test, there are several documents you must file in order to start the bankruptcy process. Specifically, you must provide the bankruptcy court in your jurisdiction with the following information:
- A list of all of your creditors and the type of debt you owe
- Your monthly income
- The amount you owe to your creditors
- A list of all of your property
- A list of your monthly living expenses, such as food costs, housing payments, utility bills, etc.
- The amount of money you make per month
- The amount that you owe each creditor and the nature of the debt
After filing for Chapter 7 bankruptcy, an automatic stay is applied to all of your outstanding debts. In other words, creditors cannot pursue any type of harassing collection efforts in order to collect the money you owe. The automatic stay also prevents creditors from executing judgments, foreclosing on your home, garnishing your wages and levying your bank accounts. In addition, once you file for bankruptcy, all of your creditors receive written notice of the action and a Chapter 7 bankruptcy trustee is assigned to examine your case.
In general, a bankruptcy trustee is an individual who is assigned by the bankruptcy court to assist your creditors in reclaiming the money that they are owed. Meaning, a trustee will examine all of your property and may require you to surrender any non-exempt items of value to repay your creditors. However, few debtors in Chapter 7 actions end up losing their property since a trustee will only force the sale of assets that are worth enough to make a significant financial difference. After the trustee reviews your case, you will be required to attend a creditor’s meeting where he or she will question you about your debt. Once this process is complete, the court will then discharge all of your qualifying debts.
Call us today to learn more about how you can pursue a fresh financial start
Regardless of the circumstances, there is a solution to your financial problems. For more information about your debt relief options, contact us today at (562) 696-0582 for a free confidential consultation. For over 24 years, we have been successfully representing clients located throughout Los Angeles County, including the Whittier, Norwalk, Downey and El Monte areas.