Steps in a Chapter 7 Bankruptcy Case

If you are considering filing for bankruptcy, you probably have many questions about the process. There is a complicated and sometimes lengthy process in Chapter 7 bankruptcy cases. Given what is at stake, you should be aware of what is involved in the bankruptcy process. If you live in Alameda County and are considering filing for bankruptcy, read the information below. Then contact an experienced bankruptcy lawyer to discuss your legal options.

Qualifying for Chapter 7 Bankruptcy?

A common misconception about bankruptcy is that all debts are handled similarly in every case. In reality, your situation and specific debts will determine the type of bankruptcy claim you can pursue. The most common type of bankruptcy filing is a Chapter 7 case. Filing for Chapter 7 bankruptcy means that you are requesting certain debts be discharged in exchange for selling some of your assets.

In order to file for Chapter 7 bankruptcy, you must meet certain qualifications. Specifically, you must earn less than the median income for a California household of your size. Alternatively, you must not have enough disposable income to pay your debts. Determining whether you meet either of these qualifications depends on your individual financial situation. An experienced bankruptcy lawyer can help determine whether you qualify for Chapter 7 bankruptcy.

Chapter 7 Filing Process

Filing for bankruptcy requires an incredible attention to detail. Your finances will be examined during the filing process and in bankruptcy court. So, your first step is compiling a list of your debts and assets. This is essential because you will be required to sell some assets to pay for a portion of your debts. Gathering the details of your finances is not a simple step. You must detail all income sources, debts, major transactions for the past two years, and assets (including personal and real property). This initial step will also help you determine if you own any exempt property. In California, certain types of property are exempt from creditors, and you cannot be required to sell exempt property to satisfy your debts.

Listing and understanding your financial circumstances is necessary when determining whether you meet the qualifications for Chapter 7, as listed above. After compiling a detailed list of your assets and debts, your attorney will file paperwork to formally start your bankruptcy case. After filing this paperwork in court, all creditors will automatically be prohibited from attempting to collect payment from you. A bankruptcy judge will appoint a trustee to your case. The trustee will determine which debts can be paid with your non-exempt assets. You will meet with your creditors and the trustee at what’s called the meeting of creditors to work out your next steps. The trustee can also challenge your repayment plan, and any claims of exempt property. An experienced bankruptcy attorney can help you navigate this complicated process with the goal of discharging your debts.

Contact Bankruptcy Lawyer in Alameda County

At the Law Offices of Melanie Tavare, our lawyers have helped countless Alameda County residents through their bankruptcy cases. We are experienced bankruptcy attorneys, and use that knowledge to benefit you. Do not try to handle your Chapter 7 cases alone. Instead, contact our firm to schedule a free consultation, and explore your legal options.

The Law Offices of Melanie Tavare are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.