 |
Practice Areas
|
|
|
|
Home > Chapter 7 Bankruptcy Requirements
Chapter 7 Bankruptcy Attorneys in Orange County California
Filing under Chapter 7 of the Bankruptcy Act (11USC Section 103 (a)) is intended to give debtors the most extensive discharge possible. It is sometimes referred to as the "Fresh Start" process.
There is no debt limitation in a chapter 7 case but there are income limitations and in the case of an individual the debt must be primarily consumer debt.
Eligibility to file a an individual chapter seven is determined through application of the "means" test", which determines your ability to pay a certain minimum amount over a five year period. If you are eligible, you may file a chapter seven. If you are not eligible you may wait to file until you are eligible or you may file under another chapter (usually chapter 13).
All individual chapter 7 filings are presumed to be an abuse and subject to dismissal or conversion if the debtors income reduced by allowable expenses would enable him or her to pay over a five year period the lesser of $10,950 or 25% of the debtors unsecured non-priority claims, but no less than $6575.
Do not make a determination that you are or are not eligible for a chapter seven without consulting with an attorney. Official Form B22A (Means Test) is a complicated calculation with many variables that can affect the eligibility outcome.
Once the decision is made to proceed with the Chapter Seven a Voluntary Petition is filed. The Petition must be accompanied by:
- Statement of social security number(s)
- Summary of schedules
- All applicable schedules
- Statement of Financial Affairs
- Statement of current monthly income
- Statement of intention
- Certificate of counseling
- Pay stubs
- Prepetition tax returns (provided to the interim trustee)
- Disclosure of compensation
- Disclosure of Educational IRA
- Documents establishing identity
- Filing fees
- Mailing Matrix
When your case is filed a 341a hearing will be set. The hearing is usually with in 35 days of the date filed. Your creditors will be notified of the hearing and of the automatic stay preventing them from trying to collect a debt from you.
At the 341a hear the interim trustee will review your tax return, ask your some questions about your paper work and invite any creditors present to ask questions. The examination is very limited and usually very brief.
The purpose of the 341a hearing is to determine if there are non-exempt assets available to satisfy your debts. A list of exemptions follows.
After the 341a hearing the interim trustee will either issue a letter of no assets or file a docket entry of no assets.
Creditors who wish to contest the dischargeability of their obligation will have to file an "Adversary Proceeding". This is a separate action with in the bankruptcy court. Creditors will also have to file a claim with in 90 days of the date first set for the 341a hearing.
You will receive a notice that you are required to complete an education class and you will be required to file a certificate of completion.
After the above process is completed, you will receive a notice of discharge and your case will be closed.
Contact us by calling 714-730-8202 or on-line to schedule an initial consultation.
Hosford & Hosford, Inc., A Law Corporation
17821 East 17th Street, Suite 295
Tustin, CA 92780-2163
Telephone: 714-730-8202| Fax: 714-730-1959
Map and Directions
At the Orange County, California law offices of Hosford & Hosford, A.L.C., we provide experienced consumer bankruptcy representation to clients in cities including: Tustin, Irvine, Orange, Anaheim and Santa Ana.
|
|
|
|
|
|
|
|
|
|
|
| Orange County Bankruptcy Attorneys - Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, Chapter 13 Bankruptcy
|
|
The information you obtain at this site is not legal advice. For legal advice, consult an attorney for advice regarding your own situation.
Copyright © 2012 by Hosford & Hosford, Inc., ALC. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. Site by Custody Match Designs. |
|
|
|
|
|
|
