Four Facts About Bankruptcy Chapter 7 in Los Angeles CA
bankruptcy Chapter 7 in Los Angeles CA may be the answer you’ve been looking for if you’re having financial problems and don’t know how to solve them. We at Winterbotham Parham Teeple, a PC can assist you in locating an exit. Continue reading to understand some of the most crucial details of this kind of bankruptcy, and if you need a consultation, get in touch with us at 800.400.9000.
Understand the Goal of Bankruptcy Chapter 7 in Los Angeles CA
Chapter 7 bankruptcy in Los Angeles CA, is intended for debtors who are struggling financially and cannot afford to pay their current bills. A “means test” is used to assess whether Chapter 7 bankruptcy may be allowed in cases where the debtors’ primary obligations are consumer debts.
Creditors may be able to make a petition to seek that your case be dismissed if your income exceeds the median level for California adjusted for your family size. The bankruptcy court will next review your case and decide whether or not to grant your case further consideration.
Most Assets Are Exempt in Bankruptcy Chapter 7 in Los Angeles CA
In a Chapter 7 bankruptcy, nine out of ten of our clients preserve everything. Because unsecured debts are paid “as in full,” if you select Chapter 13, you can keep the assets of your choice. All assets must be disclosed when declaring bankruptcy, irrespective of which of these two chapters you choose.
If You Are Found to Have Taken Part in Certain Improper Conduct Then Your Bankruptcy Will Not Be Discharged
You want to file a Chapter 7 case to discharge your debts. However, keep in mind that if you are found to have taken part in specific types of improper conduct, the court might choose to not discharge your bankruptcy. Essentially, this means that it will not go through. This is yet another reason you need professional advice before filing.
Most General Unsecured Debts Are Discharged in Bankruptcy Chapter 7 in Los Angeles CA
While most general unsecured debts can be discharged in a Chapter 7 bankruptcy, there are some exceptions. For example, you will still have to pay most back taxes, your student loans, any debts you incurred to pay nondischargeable taxes, spousal support, property settlement payments, the majority f fines, forfeitures, penalties, and other criminal restitution you owe, debts that were not listed correctly in your papers, and debts for personal injury and/or wrongful death that stem from operating a vehicle while intoxicated.
Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.
Call Us Now if You Want to Speak to an Experienced Bankruptcy Lawyer
You can turn to Winterbotham Parham Teeple, a PC when you need pre-petition planning in order to make sure that your bankruptcy is prepared correctly. More than 90% of our clients get to keep everything and lose nothing. We are able to achieve this for them by planning, reviewing, and ensuring that all special exemptions allowed are taken. Call us at 800.400.9000 for a consultation.