Chapter 7

Los Angeles Chapter 7 Bankruptcy Attorney


Worried Couple With Bill On CallWhat Is Chapter 7?

Available to individuals, married couples, and businesses whether a sole proprietor, partnership, LLC, or corporation, Chapter 7 bankruptcy affords the debtor the individual , individuals, or business that owes money to another full and final relief from nearly all creditors some debts such as student loans, domestic support obligations, certain taxes, and criminal fines are not dischargeable. The purpose of a Chapter 7 bankruptcy is to discharge. A bankruptcy discharge releases the personal liability for one’s debts. Thus, you are no longer legally required to pay any debts that are discharged. The discharge is permanent and keeps creditors from taking any form of collection action. This includes legal action and all communications with the debtor. certain debts to give each debtor a “fresh start.”

After a discharge, the debtor has no liability for discharged debts and therefore no creditor an individual or business to which money or service is owed can ever try to collect on the discharged debt again. Because of this finality, Chapter 7 bankruptcy is an outstanding tool to help you quickly clear out your overwhelming debt and get the fresh start you deserve for your financial life.

However, Chapter 7 bankruptcy may not be right for you. Some debtors will need or want something beyond what can be done through filing a Chapter 7 bankruptcy.  A Chapter 7 bankruptcy discharge does not extinguish a lien For instance, removing a judgment lien, a second mortgage on your home, a home equity line of credit, or an auto loan may not be removed by the discharge itself. At times, additional motions can be file to remove said liens or possibly you may be better off filing a Chapter 13 bankruptcy to deal with such issues. on real or personal property. Others may have assets that could be at risk of liquidation a process whereby the asset is sold and the proceeds are distributed to the creditors under a Chapter 7 bankruptcy. Each state has its own exemption laws exemptions are used to enable a person to keep an asset safe from creditors during a Chapter 7 filing but in general most will be able to fully protect any and all retirement accounts, their family home, furniture, clothing, jewelry, and vehicles.

Speak to your Wajda Law Group Chapter 7 Bankruptcy Attorney about which assets are protected under the laws in your state.

Lastly, we must determine if you qualify for Chapter 7 bankruptcy. Although there is no minimum or maximum limit on the amount of debt that can be discharged in a Chapter 7 bankruptcy, there are certain income limitations regarding eligibility for a fresh start under Chapter 7. Wajda Law Group has the experience to make this determination for you and can usually give you answer to whether you qualify for Chapter 7 bankruptcy during your free consultation. The first step in determining your qualification for a Chapter 7 bankruptcy is to calculate whether your household income is above the median level for your household size in your area. However, even if your household income exceeds this median, you may still qualify for a Chapter 7 fresh start.

When a debtor’s household income is greater than the median, the debtor must pass the means test A complicated formulaic test that balances your monthly household income against a combination of local and national expense standards intertwined with a debtor’s actual monthly expenses to determine whether there is enough disposable income to pay a minimum threshold amount to one’s creditors in order to qualify for the fresh start under Chapter 7.

At Wajda Law Group, we have the experience needed to navigate the means test on your behalf and get you the relief you deserve. To see if Chapter 7 bankruptcy is right for you, schedule your appointment for a free consultation with a Chapter 7 Bankruptcy Attorney in Los Angeles!

For a more detailed explanation of Chapter 7 bankruptcy, please visit