Long Beach Chapter 7 Bankruptcy Lawyer – Claveran Law Firm

Chapter 7 of the Federal Bankruptcy Code provides an individual or business entity with the opportunity to discharge consumer debt without having to pay it back. Faced with what seems like overwhelming debt, with insufficient or no income, and with no place to turn, contact the Claveran Law Firm, Long Beach, California bankruptcy attorneys. We can help you.

When you file for bankruptcy under Chapter 7, the bankruptcy court appoints a trustee who determines what, if any, property you have that may be sold to satisfy your debts, and then applies the proceeds of any sale to your debts. Each state has different laws concerning what property may be sold, and different residency requirements governing whether you are allowed to use the state’s exemptions.

As of October 2005, you must pass a “means test” in order to be eligible to file for bankruptcy under Chapter 7, pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The means test looks to your income and expenses and compares them to the standard for your area (as determined by the IRS). If your means are sufficiently “high,” you will not be permitted to file for Chapter 7; you may still file for bankruptcy, but under Chapter 13, which has different rules and requires at least some debt repayment.

Chapter 7 is not simply a get-out-of-debt free card, however. It will not prevent foreclosure, and any bankruptcy filing has serious ramifications for your credit report and your future financial condition. Not all debts can be discharged, and creditors may contest your attempt to discharge their debts.

Bankruptcy law is complex, and the advantages and disadvantages of filing must be carefully weighed. If you are considering filing for Chapter 7, you need an experienced, knowledgeable attorney to help you determine what your options are.

Contact the Claveran Law Firm at 888.838.0431 to discuss whether bankruptcy is right for you. We are also able to answer any questions you may have by email via our quick online contact form.