Los Angeles Chapter 7 Consumer Bankruptcy Attorney
Liquidate Eligible Debts Through Chapter 7 Bankruptcy
Many hard-working people run into financial difficulty through no fault of their own. A layoff, a divorce, or major medical problem can push you to your financial limit.
But you do not have to suffer financial hardship. With a Chapter 7 personal bankruptcy filing, you can get debt relief, more disposable income, and stop the threat of foreclosure or repossession.
You do not have to worry about how you will ever get out from under the bills and debts you owe. You can face the future with hope and optimism again. Resnik Hayes Moradi LLP can help you take control of your financial future.
Call our Chapter 7 bankruptcy lawyers in Los Angeles at (213) 344-0043 today to schedule your 30-minute risk-free consultation.
Do I Qualify for Chapter 7?
To file for Chapter 7, you must meet several qualifications.
- Not enough income: First, the family must show that they do not have sufficient household income to repay their debtors. A monthly submission of a family’s income and household expenses must show there is not any extra money left over that could be used to pay creditors. With the high cost of living in California and soaring gas and food prices, this is usually the easy hurdle. It is important to note that the expenses claims must be reasonable.
- Pass the means test: The second component is more difficult, passing the means test. This gauges your income against the median of your household in the state.
- You are an individual, married couple filing jointly, or small business owner.
- No recent bankruptcy discharge: You are not legally able to file Chapter 7 bankruptcy if you had a previous Chapter 7 bankruptcy discharge within the past 8 years, or a Chapter 13 bankruptcy discharge within the past 6 years. The filing period starts the date your previous bankruptcy was filed, rather than when the bankruptcy was discharged.
- No recent bankruptcy dismissal: You are not able to file Chapter 7 bankruptcy if you had a bankruptcy dismissed within the past 180 days for any of the following reasons: you violated a court order, abused the bankruptcy system, made a fraudulent bankruptcy filing, or requested a dismissal because a creditor requested the automatic stay be lifted.
- Complete Credit Counseling: To be able to file any type of bankruptcy, you are required to receive credit counseling from a government-approved credit counseling agency. You are not required to get counseling before filing bankruptcy, but it must be completed no more than 180 days prior to the bankruptcy discharge and it must include a two-hour financial management course. Your bankruptcy case will be dismissed if you do not go through credit counseling within the specified time frame.
Passing the Means Test in California
Chapter 7 is typically reserved for low-income debtors who may not be able to afford repayment plans under Chapter 13. In order to qualify for Chapter 7 bankruptcy, you must pass the Chapter 7 Means Test.
- It looks at your average monthly gross income for a household for the prior six months and annualizes that figure. If your income is less than the median, then you pass the Means Test and are eligible to file for Chapter 7.
- If your income exceeds your state's median for your household size, then you do not qualify for Chapter 7. You may opt for Chapter 13 or consider waiting until your income is low enough to qualify for Chapter 7.
Bankruptcy is a complicated area of law and not all expenses may be allowed. There are many rules that must be followed and requirements that must be met. Resnik Hayes Moradi LLP can evaluate your situation in a 30-minute risk-free consultation. We may recommend a Chapter 7 filing or a Chapter 13 filing. Both options can lift your debt burden and give you a new financial life.
Current Median Incomes for California (Updated 2021)
The means test is based on calculations from the Census Bureau. The mean amounts vary depending on state and family size. The median income for a household is typically adjusted at least once a year, sometimes more frequently to account for fluctuating household incomes. Currently, the median income numbers for California are:
•· Single person household: $62,171
•· Two person household: $82,418
•· Three person household: $91,605
•· Four person household: $105,232
•· An additional $9,000 is added for each additional person beyond a family of four.
For those who do not meet these threshold amounts, they may still qualify for a Chapter 7 bankruptcy provided they can document additional accepted reasonable living expenses for the court. The debtor will complete the extensive means test form, which deducts additional living expenses such as taxes, health insurance, daycare, etc., to determine a monthly disposable income. If that amount is within the threshold, then they pass the means test.
The Benefits of Chapter 7
Chapter 7 personal bankruptcy is ideal for people without significant assets who have hit a bump in the road and want a fresh start. After a brief meeting with an attorney at our firm, we may be able to file your case and immediately stop creditor harassment and calls from collection agencies.
With a Chapter 7 filing, you can say goodbye to:
Credit card debt
Tax bills more than 3 years old
Garnishment and the threat of foreclosure and repossession
Other unsecured debts and obligations
Free up income that used to go toward interest and late fees
Keep your house, car, and personal possessions if you are current in payments for them
Begin rebuilding your credit rating
Start a new financial life
Resnik Hayes Moradi LLP charges convenient flat fees and offers long-term payment plans for those that qualify. We devote our practice solely to bankruptcy, so we can provide skilled and knowledgeable services in an efficient manner.
What Chapter 7 Bankruptcy Doesn’t Eliminate
It’s also important to know that Chapter 7 does not eliminate some debts including student loans and most back taxes, along with court-ordered alimony and child support.
With the help of our Chapter 7 bankruptcy lawyers in Los Angeles, in just a short period of time you may bay be able to eliminate unsecured debts and get tax debt relief and be on the way to a more secure financial future.
For a 30-minute risk-free consultation with a personal bankruptcy lawyer at Resnik Hayes Moradi LLP, contact us today. Our firm serves clients in the Los Angeles area and San Fernando Valley through offices in Sherman Oaks and Los Angeles.
Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.- Skip K.
Was very impressed with the comprehensive professionalism of the firm...- G.L
He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults.- David K.
He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own.- Kelly S.
I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home.- Joseph R.