Bankruptcy Attorneys Salinas

Bankruptcy Attorneys Salinas

If you are considering bankruptcy, you are in a challenging situation that may leave you wanting to ignore the issue. This approach, however, is not going to resolve the issue, and you may be surprised by the fresh start that bankruptcy can provide. The most important first step that you can take is also one that may provide you the peace of mind you are looking for, and that is reaching out to an experienced bankruptcy attorney in Salinas for the help you are looking for. 

Considering Chapter 7 Bankruptcy

There are several kinds of bankruptcy, but the most common for individuals who have gotten to the point that they feel like they are drowning in debt is Chapter 7 bankruptcy. Chapter 7 involves paying off your creditors by liquidating those assets that belong to you. In the Chapter 7 bankruptcy process, however, you are allowed to keep those assets that are necessary to continue to support yourself moving forward (under exemptions), including:

• A portion of the equity in your home (if you are a homeowner)
• Your vehicle
• Your reasonable and necessary clothing, household goods, appliances, and furnishings
• Up to a specific value in jewelry
• Your pension

Bankruptcy is intended to provide those who go through it with a fresh financial outlook – not to take away their ability to continue supporting themselves in the process. 

Instead of requiring you to file a repayment plan, a Chapter 7 bankruptcy involves gathering and selling off those assets that are not exempt and using the proceeds to pay creditors in accordance with the Bankruptcy Code. 

Eligibility

In order to seek a Chapter 7 bankruptcy, you must be eligible to do so, and towards this end, you must pass a means test. If your household falls below the median income for a household of your size, you are exempt from the test, but otherwise, the following limitations apply:

• If you live by yourself, you cannot earn more than $62,938 annually. 
• This amount rises to $83,435 annually (combined earnings) if your household consists of two people. 
• The limit is set at $92,735 for combined earnings in households of 3. 

These maximums are recalculated twice each year. 

If your household’s earnings are in excess of the maximum amount allowed, you may still qualify, but you are required to take the full means test. This is a matter of subtracting all allowable expenses from your total income, and if the resulting amount is below the financial threshold listed above, you qualify to seek a Chapter 7 bankruptcy.

An Experienced Bankruptcy Attorney in Salinas Can Help

The savvy bankruptcy attorneys at Miranda, Magden & Miranda, LLP, in Salinas have a wealth of experience helping clients like you reset their finances and get back on track with Chapter 7 bankruptcies that protect their legal rights and work for them. If you are facing crushing financial hardship, you should not wait to reach out and contact us for more information about how we can help you today.