Chapter 7 Bankruptcy Lawyer in L.A.
Chapter 7 bankruptcy allows for the elimination of unsecured debt and certain past taxes. It provides relief from credit card debt, personal loans, medical bills, payday loans, repossessions, unpaid rent, and other credit that is not secured by property. Eliminating debt in Chapter 7 bankruptcy helps free up money to pay secured debt like a vehicle or home.
The risk in filing Chapter 7 bankruptcy is that the person might not qualify, might lose their property, and might be challenged by a creditor or the bankruptcy trustee. These risks are carefully reviewed and analyzed by our attorneys and thoroughly explained to any client who wishes to file for a Chapter 7 bankruptcy.
Do I Qualify for Chapter 7 in California?
Chapter 7 bankruptcy is for individuals who cannot afford to pay back their debts. To qualify, an individual must pass the means test, which is an analysis of income, expenses, and total amount of debt. If an individual has enough disposable income to pay some of the total debt, that person may need to file for Chapter 13 bankruptcy through a repayment plan.
The means test that determines Chapter 7 eligibility involves a complex formula and detailed knowledge about California’s median income levels and expenses. We provide a free means test analysis to assist in determining if individuals qualify for a “fresh start” debt relief under Chapter 7 bankruptcy.
After a Chapter 7 bankruptcy case is filed, the debtor receives a discharge of unsecured debt within about 120 days. The Bankruptcy Code dictates what kinds of unsecured debts are eligible for discharge.
Is Chapter 7 Bankruptcy Right for Me?
Chapter 7 bankruptcy cannot erase certain types of debts, such as:
- Child support
- Student loans (with uncommon exceptions)
- Debts relating to injuries caused by the debtor’s DUI
- Traffic tickets
- Court-ordered restitution
- Most tax debts
Most Chapter 7 filings are “no-asset” cases—that is, the debtor does not need to hand over any personal property. You must be certain to list all your assets when filing. Your Chapter 7 bankruptcy attorney in the San Fernando Valley will help you go over your assets and guide you through the process.
How Much Equity Can I Protect In My House?
Under new homestead exemption laws, an individual can protect $300,000 to $626,400 of equity in their property depending on the county they reside. We will analyze and review the value of the property before filing a chapter 7 bankruptcy.
What Does A Chapter 7 Do To My Credit?
A chapter 7 bankruptcy will affect an individual’s credit report for 7 to 10 years. However, and individual’s credit will be above 700 within 2 years after discharge. We will advise each client on what actions need to be taken to increase their credit over 700 within 2 years.
Why Choose the Law Firm of Kevin T. Simon?
When it comes to searching for bankruptcy lawyers in the Los Angeles area, you want to find attorneys who are well versed at both Chapter 7 and Chapter 13 bankruptcy cases, and can guide you toward the right option for your financial situation. You also want to find a law office that charges reasonable Chapter 7 bankruptcy attorney fees in California. The San Fernando Valley bankruptcy attorneys at the Law Offices of Kevin T. Simon, APC provide solutions at reasonable prices.
A bankruptcy discharge is a powerful and complete elimination of most unsecured debts. This debt does not need to be repaid in the future. Ask our affordable Chapter 7 bankruptcy lawyers whether this is the best option for you. Based in Woodland Hills, California, we represent clients in Los Angeles County, the San Fernando Valley, Santa Clarita County, Antelope Valley, Santa Barbara County, and Ventura County.
Call (818) 783-1674 or contact us online to schedule a free consultation with Kevin Simon, an experienced Chapter 7 bankruptcy lawyer in Los Angeles.
Frequently Asked Questions
Will filing for bankruptcy affect my credit score?
A Chapter 7 bankruptcy will remain on your credit report for up to ten years. However, if you owe substantial amounts of money, it’s likely that this is already reflected in your credit score. By discharging your debts under Chapter 7, you can begin the process of rebuilding your credit.
How much are attorney and filing fees?
This depends on the complexity of the case. Most individual chapter 7 cases cost $1,350 to $2,500. These costs include the filing fee, credit report, paperwork, and attorney appearance.
What exemptions are available to me?
California does not permit the use of federal bankruptcy exemptions. You must select one of the two sets of exemptions recognized by California law. These are outlined in Section 703 and Section 704 of the California Code of Civil Procedure. Section 703 tends to be best for those who don’t have home equity. Section 704 has a $313,200-$626,400 homestead exemption and is used mainly by those who want to protect their homes.