Chapter 7 Bankruptcy

For people who are suffering from immense debt, filing for bankruptcy may be the only option to allow them to rejoin productive society again. Bankruptcy is a constitutionally-protected right because a lifetime in debt due to a car accident, medical trauma, or bad decision to co-sign on a vehicle does not help society. Chapter 7 bankruptcy may be the best way to begin rebuilding your financial future. At Miranda, Magden & Miranda, our experienced Chapter 7 bankruptcy attorneys are here to help you navigate the bankruptcy process and work toward wiping the slate clean for your productive, financial future.

Eligibility for Chapter 7 Bankruptcy

There are no minimum or maximum monetary eligibility requirements to file for Chapter 7 bankruptcy. There are income, expense and assets tests that you must pass in order to be permitted to file under Chapter 7 versus Chapter 13. Also, you must complete two credit counseling courses, must not have filed a prior bankruptcy within certain time frames, and may not have had a prior bankruptcy petition dismissed in the same time frame for a willful failure to appear or failure to comply with the court.

How Chapter 7 Bankruptcy Works

Chapter 7 bankruptcy does not require a repayment plan like other bankruptcy filings do. Under Chapter 7, a petition is filed with the court that includes schedules of assets and liabilities, current income and expenditures, a statement of financial affairs, and a statement regarding executory contracts and leases in addition to relevant tax returns and other documentation such as a certificate of credit counseling. The debtor must also provide a list of debts and creditors and what is owed, any source and frequency of income, a list of the debtor’s property, and a list of monthly living expenses.

A Chapter 7 trustee is then assigned to the case, and he will hold a creditor’s meeting where the debtor will answer questions about their filed petition and schedules, and creditors have the opportunity to attend. The process following the date of filing takes approximately three months in California. Following the closing of the case, the debtor can begin rebuilding their lives and their credit scores. Our attorneys are happy to assist with your plan to rebuild your financial life.

Alternatives to Chapter 7 Bankruptcy

It is important to note that there are other alternatives to Chapter 7 bankruptcy if a person meets other eligibility requirements, or if they do not meet the more modest income and asset requirements for a Chapter 7 bankruptcy filing. Individuals may be able to file for Chapter 13 bankruptcy, which sets up a three-to-five-year repayment plan and can possibly allow the debtor to keep his or her home despite arrears on their home mortgage, among other benefits. Although our firm specializes in Chapter 7 cases, in some instances, a Chapter 13 filing may be a better option for you, and in that case, we will let you know the reasons why and do our best to give you an alternative course of action to reach the relief you need.

Call Our Office Today

If you need to file bankruptcy in the Monterey or Salinas area, our experienced Chapter 7 bankruptcy attorneys may be able to help. Call or contact the office of Miranda, Magden & Miranda today to schedule a free consultation of your bankruptcy case.

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Miranda, Magden & Miranda, LLP is a designated Debt Relief Agency. We help consumers file for relief under federal bankruptcy laws designed to protect people like you.