Chapter 7

The most common forms of bankruptcy are Chapter 7 and Chapter 13. Since the major change in the bankruptcy laws, which occurred on Oct. 17, 2005, it is imperative that your attorney is able to identify any negative impact that the filing of bankruptcy would have on you and fully understand how these changes affect your eligibility to file for Chapter 7 or Chapter 13 bankruptcy protection.

Trusted California Debt Relief Attorney

At the Law Offices of Elliott Abrams, our firm is committed to helping individuals and families get back on their feet through bankruptcy. This is an effective way of regaining control of your finances. See below for more information on Chapter 7 and the Means Test.

Contact attorney Elliott Abrams at our firm today to further discuss your bankruptcy options.

What Is Chapter 7 Bankruptcy?

Simply stated, a Chapter 7 bankruptcy filing results in the discharging of most of your debts, including, in some cases, income taxes. You generally are able to retain most essential assets, including those that have been pledged as security, such as your home and your car, provided you agree to "reaffirm" the secured debt. This means you will gain a fresh start, as most of your debt is erased. When beginning a Chapter 7 bankruptcy, a petition is filed with the bankruptcy court with extensive schedules of your assets, your debts, your monthly income and your monthly expenses. You are required to attend a meeting of creditors, known as the 341 meeting. As a condition of receiving the discharge of your debts, you are further required to complete a course in personal financial management. This course, as well as the required credit counseling, is available online. In most situations, the final discharge is granted within 90 days of the 341 meeting.

The Means Test

The Means Test determines whether you can file for Chapter 7 or must instead file for Chapter 13. It is an analysis of your average income over the prior six months and your "allowable" living expenses to determine whether you have any disposable income from which to pay back all or part of your underlying debt. If enough disposable income exists, you will need to file for Chapter 13 protection in order to repay at least some of the debts that are owed.

For more information on Chapter 7, contact our firm today. Attorney Elliott Abrams can help you understand how each of these types of filings may benefit you and help you regain control of your financial situation. Call the office today at 925-947-1333 to schedule your appointment.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.