|
|
|
|
|
|
|
|
|
|
| 11271 Ventura Blvd. |
| Suite 473 |
| Studio City, CA 91604 |
| Phone: 877-479-7970 |
| Fax: 888-509-8864 |
|
|
|
|
| Warner Center Towers |
| Phone: 877-479-7970 |
| Fax: 888-509-8864 |
|
|
|
|
| Watt Plaza |
| Phone: 877-479-7970 |
| Fax: 888-509-8864 |
|
|
|
|
| Fashion Island |
| Phone: 877-479-7970 |
| Fax: 888-509-8864 |
|
|
|
|
|
Chapter 7 Bankruptcy
|
|
Also known as liquidation or "straight" bankruptcy, Chapter 7 bankruptcy allows a debtor to eliminate most of their unsecured debt. In a Chapter 7 bankruptcy filing, the debtor provides the bankruptcy court with information about income and expenses, and about assets and debts.
|
|
|
There is a small fee incurred to file a Chapter 7, but there are way to get the fee waived if the debtor is unable to afford it. Once the petition is filed, the court appoints a person, called a "trustee", to supervise the administration of the bankruptcy.
|
|
|
If assets need to be sold to satisfy the debtor's obligations, they are sold under the supervision of the bankruptcy trustee. Depending on the debtor's situation, bankruptcy laws may allow debtors to keep certain assets. A Chapter 7 bankruptcy is usually complete in three to six months.
|
|
|
To qualify for Chapter 7 debt relief, a debtor must meet the means test provided for under federal bankruptcy laws. This is where the court examines the debtor's income over the last six months and compares their average income to the median income in their state for a household of a similar size. The debtor must have also received mandatory credit, counseling from an approved credit-counseling agency.
|
|
|
Chapter 7 debt relief begins with filing a petition with the bankruptcy court in your area. In addition to this petition, you must provide schedules of assets and liabilities, current income and expenditures, a statement of financial affairs, of executory contracts and unexpired leases, and recent tax returns. You must also file a document certifying you received credit counseling.
|
|
|
After receiving all required Chapter 7 documents, the court will appoint a trustee. This trustee will work with you and your creditors to discharge debt by liquidating your nonexempt personal assets. If successful, a Chapter 7 bankruptcy filing releases you from any liability for existing consumer debt, and prevents creditors from pursuing any collections proceedings against you.
|
|
Contact us at 877-479-7970, or e-mail us at info@law-thomas.com, to arrange for a confidential complimentary consultation on your financial needs.
|
|
|
|
|
|
