Information Regarding Bankruptcy Eligibility from California Lawyers
A few years ago, major changes were made to the bankruptcy laws. These changes have resulted in a great deal of confusion surrounding the bankruptcy process. Because determining which type of bankruptcy you qualify for has gotten more difficult, it can be helpful to discuss your situation with an experienced attorney.
The bankruptcy lawyers at Simon Resnik Hayes LLP, have extensive bankruptcy experience. Our firm has helped thousands of individuals and small businesses find the debt relief they deserve through bankruptcy protection. During a free consultation, we can evaluate your financial circumstances and let you know which type of bankruptcy you qualify for.
Chapter 7 Bankruptcy
There is a threshold that Congress created about how creditors will be paid in bankruptcy. Simon Resnik Hayes LLP knows how to weed through the means test process so you can complete a Chapter 7 bankruptcy without any issues.
Chapter 7 bankruptcy is for filers who truly cannot afford to pay their debts. To qualify, a debtor must pass the means test, which is an analysis of income, expenses and total amount of debt. If a debtor has enough disposable income to pay back even a portion of the total debt, that person will need to file for Chapter 13 bankruptcy.
While the means test may sound simple, it involves a complex formula and detailed knowledge about your state’s median income levels. If you are wondering whether you qualify for this type of debt relief, speak with our bankruptcy attorneys.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows you to cure a default and keep real and personal property. To qualify for Chapter 13 bankruptcy, the debt reorganization plan, an individual must have a source of income and be able to maintain repayment obligations. Further, the debtor’s total unsecured debt and secured debt must fall below a certain dollar amount, which is adjusted periodically for inflation. Also, the debtor must submit proof that he or she filed federal and state income tax returns for the four years prior to filing bankruptcy.
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Determining eligibility for bankruptcy is a sophisticated and complicated process. To ensure you are on the right track, speak with our firm about your circumstances. Our lawyers will look at your situation from all sides and advise you whether bankruptcy is the best route for you. If so, we will take your total debt, income and ability to repay into consideration to identify the bankruptcy plan you qualify for.
Call 310-598-7365 or 888-368-4099, or contact us online to schedule a free consultation. From our offices in Los Angeles and Sherman Oaks, we proudly serve clients throughout Los Angeles, San Fernando Valley, Riverside, San Bernardino and Orange Counties.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.