Chapter 7 Consumer Bankruptcy and Debt Relief
Experienced Los Angeles County Bankruptcy Attorneys
Many people get behind paying their bills. Credit card debt, medical bills, mortgage payments and other debts can make difficult situations that much worse. Fortunately, however, Chapter 7 bankruptcy is designed to help people climb out of these situations.
The goal of Chapter 7 bankruptcy is to give consumers a simple and effective way to eliminate debt and find a fresh start in their financial lives. In a Chapter 7 bankruptcy, also known as a liquidation' bankruptcy certain non-exempt assets are taken and sold with any proceeds going to creditors. It is important to note that certain exemptions will protect your property from liquidation.
At the Law Offices of Mosesi & Kalantarian, LLP, we help individuals and their families find the debt relief they need by filing for Chapter 7 bankruptcy.
The Means Test and How It Affects You
Recent changes in the bankruptcy laws require individuals who wish to file for Chapter 7 bankruptcy to pass a means test prior to filing. The means test is typically the most complicated part of the process. For this and other reasons, it is important to consult an experienced lawyer and not try to file for bankruptcy by yourself. Without proper guidance, it is possible for serious problems to arise.
A median income test is used to see if you qualify for Chapter 7 bankruptcy. Under this test, if your current monthly income is below the median income in the state that you reside, then the law presumes that there is no abuse on your part and that you qualify for Chapter 7 bankruptcy. If your income is more than the state median income, you must then go on to the second part of test. Find the median income for residents of California here.
The second part of the test looks to see if your income falls bellow the median level because of certain allowable expenses. If these expenses sufficiently reduce your available income, you qualify for Chapter 7 bankruptcy. If they do not, you will not be allowed to file for Chapter 7. The IRS allowable expenses can be found here.
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The means test can be confusing. Contact the Law Offices of Mosesi & Kalantarian, LLP to get an experienced opinion about your situation. We can explain the test to you, see if you qualify, and determine what to do if you do not qualify. Call us at 818.433.7590 or toll free at 888.848.8408 to learn more.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Contact Info.
360 East Olive Avenue
Burbank, CA 91502-1215
Phone 818.433-7590
Toll Free 1.888.848.8408
Fax 888.667.5482
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