When you step into our offices, the first thing we will do is give you a picture of your estate, both what you owe and what you own. Taking a comprehensive look at your financial situation and goals for the future, we will help you determine which bankruptcy option is right for you. In order to make this determination, our attorneys will need to review the following:
- 60 days of paystubs to determine income
- Credit reports to review listed creditors
- Any lawsuits, garnishments or levies against you
Chapter 7
Chapter 7 bankruptcy is a liquidation proceeding in which the debtor's non-exempt assets, if any, are sold by the Chapter 7 trustee and the proceeds distributed to creditors according to the priorities established in the Code.
Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a “means test?designed to determine whether the case should be permitted to proceed under Chapter 7. Eligibility to file Chapter 7 is determined by the means test instituted with the 2005 amendments to the bankruptcy code.
In most consumer cases, all the assets are exempt, and therefore there are no assets to liquidate and there is no dividend to creditors. Chapter 7 is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations and partnerships.
The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts.
After you file your bankruptcy petition, you will get a hearing in front of a trustee within 4 to 5 weeks. They will review the documents and determine whether you are eligible for Chapter 7 bankruptcy.
You will have to undergo a means test as well, which is a mathematical formula based on income, total debts and other factors. If you pass the means test, you can begin the Chapter 7 bankruptcy process. Within three to four months, your debt will be completely discharged and you will get a fresh start.
A SUCCESSFUL CHAPTER 7 CASE
Client Jackson owed $95,000.00 in credit cards debts. He is being sued by 3 of his creditors in State Court. Client Jackson makes $80,000.00 per year but is unable to keep up with the 22%+ interest rate that is still increasing by day.
Law Offices of Steven P. Chang successfully filed a Chapter 7 bankruptcy and within 4 months obtain a complete discharge allowing Client Jackson a fresh start without the constant harassment of calls, collection letters, and lawsuits.