Chapter 7 Bankruptcy Requirements

A Chapter 7 personal bankruptcy is the most common form of petition filed in the U.S. and in California. This is the fastest and easiest form of bankruptcy. Not everyone, however, will qualify for a Chapter 7 bankruptcy, also known as a liquidation bankruptcy. That is because your income cannot exceed a certain amount for your household, generally the median income for a household of your size in your state. If your income exceeds this amount, you must pass a means test which will calculate your disposable income after expenses.

Those who have filed for bankruptcy and had their case dismissed within 180 days prior may not file a new petition. Also, you cannot obtain another Chapter 7 discharge of your debts if you received a discharge within the last 8 years in a bankruptcy case.

In order to file for a Chapter 7 bankruptcy, you will also have to complete a pre-filing credit counseling session. In this session, you will discuss your financial condition with a counselor and will gain a better idea of where you stand and what your available options may be. You may have other alternatives that you can engage in besides bankruptcy.

Your bankruptcy case will not fly if you engage in certain behavior, such as trying to hide assets or transferring assets to family or friends just prior to your case, buying luxury items on credit prior to filing for bankruptcy that you are not able to pay off, or providing any type of false information to the courts.

Irvine, California Bankruptcy Attorney

Filing for bankruptcy involves voluminous paperwork which must be submitted thoroughly and properly. It also involves state and federal rules which must be complied with. For those unfamiliar with the process, all that is entailed in completing and submitting a bankruptcy case can be overwhelming. That is why it is best to rely on a legal professional who fully knows the laws and regulations pertinent to your geographical area and who handles such matters on a daily basis.

Peter Rasla & Associates, PLC, is a bankruptcy law firm located in Irvine that provides stellar legal assistance to those in need of debt relief solutions. Due to his outstanding legal ability and professional service, Mr. Rasla has earned an AV-Preeminent rating from Martindale-Hubbell, which is the highest rating possible. He and his legal team are more than able and prepared to help you sort out your financial problems and find the most suitable and advantageous solution. The firm offers a free consultation to help you learn more about how to resolve your particular financial crisis. Contact their offices to schedule your initial meeting with an experienced attorney as soon as possible.