These Are the Four Things You Need to Know About Bankruptcy Chapter 7 in Pasadena CA
If you are facing financial difficulties, bankruptcy Chapter 7 in Pasadena CA could be the answer you’ve been searching for. Work with Winterbotham Parham Teeple, a PC to talk to an attorney who can help you out of this situation. In the meantime, keep reading to learn essential factors about bankruptcy and then contact us at 800.400.9000 for a consultation.
Understand the Goal of Bankruptcy Chapter 7 in Pasadena CA
Bankruptcy Chapter 7 in Pasadena CA is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a “means test” designed to determine whether the case should be permitted to proceed under bankruptcy Chapter 7 in Pasadena CA.
In specific situations, creditors have the right to submit a petition asking the court to dismiss your case if your income is higher than the median income for the state in which you live and the size of your household. The court will determine whether or not to dismiss the bankruptcy.
Most of Your Assets Are Exempt from Bankruptcy Chapter 7 in Pasadena 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.
Your Attorney Will Explain Various Types of Improper Conduct That Could Impact Your Bankruptcy
The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated. Proper advice is key to a successful discharge.
There Are Exceptions to the Unsecured Debts That Can Be Discharged in Bankruptcy 7 in Pasadena CA
There are a few exceptions to the rule that most general unsecured obligations can be dismissed in a Chapter 7 bankruptcy. For instance, you will still be responsible for paying back the majority of your back taxes, your student loans, any debt you accrued to pay nondischargeable taxes, spousal support, property settlement payments, the majority of the fines, forfeitures, penalties, and other criminal restitution you owe, as well as debts for injuries sustained or deaths caused as a result of drunk driving.
If a creditor can demonstrate that portion of your debt was caused by fraud, theft, deliberate or malicious harm, or a violation of fiduciary responsibility, the court may not be able to discharge your obligation.
Call Today to Speak to a Bankruptcy Attorney
Winterbotham Parham Teeple, a PC provides pre-petition planning to assure the highest protection available. Over 90% of our clients keep everything and lose nothing. We achieve this by careful planning and taking special exemptions allowed by law. Call us now at 800.400.9000 to get started.