Anaheim Chapter 7 Bankruptcy Lawyer Helps Debtors Get a Fresh Start
California attorney guides clients through debt relief options
Sometimes situations beyond your control can lead to overwhelming debt. These might include a drastic medical condition, the loss of a job or a business failure. Whatever the cause, if you find yourself unable to pay your bills and see no hope of an improved financial condition, filing for bankruptcy may be your best course of action. Designed to give debtors a fresh start, this form of relief puts a stop to creditors’ collection actions and can bring about a cancellation of most or all of your debts. At Marlin Branstetter Attorney at Law in Anaheim, I offer clients throughout Southern California a path to prompt and efficient debt relief.
Who qualifies for Chapter 7 bankruptcy?
Prior to filing a Chapter 7, you must satisfy the means test, which is meant to prevent abuse of the system by people who actually can repay some of their debt. The means test calculates your average monthly income compared to the median income for a similarly sized household in your area of California. If your income is below the median, you pass the test. If it is above the median, you may still pass if your basic expenses leave you with little or no disposable income. I can determine whether you are eligible for Chapter 7. If you are not, I will advise you about filing a Chapter 13 bankruptcy, which will afford you protection from creditors while you pay off a portion of your debt over time.
What is the Chapter 7 automatic stay?
An automatic stay goes into effect when you file for Chapter 7. It generally stops creditors from contacting you for payment and from pursuing wage garnishment, home foreclosure or other collection actions. If creditors violate the stay, the bankruptcy court can impose fines or other measures. The automatic stay does not apply to all creditors. Child support and alimony debt, for example, is not subject to the stay. In addition, a creditor can move to have the stay lifted with respect to certain debts for good cause. As an experienced Anaheim bankruptcy attorney, I will work to make sure you get the full benefit of the automatic stay throughout your case.
The process for filing a Chapter 7 bankruptcy in California
There are numerous steps involved in a Chapter 7 case. They include the following:
- You complete an approved credit counseling course before filing
- You file the Chapter 7 petition, supported by all required income, asset and debt information This includes passing the means test or showing you are exempt.
- The automatic stay goes into effect.
- The court appoints a trustee to oversee your case.
- You attend a meeting at which the trustee and possibly creditors ask you questions about your finances and bankruptcy forms.
- The trustee determines if you have any nonexempt property that can be sold to pay creditors.
- You complete an approved financial management course.
- If there are no objections by creditors, you will receive a discharge of your qualifying debts, typically within three to six months after filing.
I will closely analyze your eligibility for Chapter 7 and make sure you get the full benefits it offers.
Assets that can be protected under Chapter 7
Chapter 7 allows the trustee to sell off some of your assets to satisfy creditors. However, California law provides for exemptions that allow you to preserve certain assets, such as your car, clothing, household furnishings and tools of your trade. Part of your home equity may also be protected. My law firm will help you determine which of your assets are eligible for exemption so you get the maximum protection of your property under the law. Most debtors end up keeping substantially all of their property.
What happens to secured debt in Chapter 7 bankruptcy?
A secured debt is based on collateral, such as a car, that the lender can repossess if the borrower defaults. If your equity in secured property is not fully covered by an exemption, you may be able to have the loan reaffirmed or modified by the lender or you may be able to redeem the property by paying off the loan in a lump sum. I will counsel you about your options based on your unique situation.
Contact an experienced California Chapter 7 bankruptcy attorney
At Marlin Branstetter Attorney at Law in Anaheim, I deliver effective legal support to Californians living with unmanageable debt and considering Chapter 7 bankruptcy. Call my firm at 714-276-8589 or contact me online to arrange a consultation.
