Irvine, California Chapter 7 Lawyer
Helping You Achieve Financial Freedom in Orange County
If you’re an individual or business owner in a difficult financial situation with a considerable amount of debt to deal with, undergoing Chapter 7 bankruptcy can free you from the burden caused by most unsecured debts. You may have fallen behind on credit card payments, been hit large medical bills, or your company needs to redistribute money to pay priority debts such as taxes. In any of these cases and more, Chapter 7 can help you diminish or even eliminate your obligation to pay these debts.
Contact us online or call (949) 570-5466 for a free consultation at Financial Relief Law Center. Speak with an Irvine, California Chapter 7 attorney today!
Understanding Chapter 7 Bankruptcy
Chapter 7 is the most common form of bankruptcy used in the United States. Available to most individuals and businesses in Orange County, Chapter 7 is also often referred to as “liquidation bankruptcy” because nonexempt property and assets in a debtor’s estate are sold off. The proceeds from a bankruptcy sale are then used to pay creditors and satisfy the debtor’s obligation.
While this is what happens in theory, in many cases it’s possible that all property someone owns can be exempted from seizure and sale. This means the debtor can eject unsecured debt without losing household appliances, jewelry, family heirlooms, and whatever else they may value. An experienced Chapter 7 attorney may be able to help you win such a “no-asset” case or help you keep what’s most important to you should your creditors force a seizure and sale of your property.
Can All of My Debt Go Away?
Not all of your debt will clear in Chapter 7, but most of it can. If you owe a considerable about of unsecured debt – money owed that’s not secured by collateral – most of it can be discharged during bankruptcy.
Common types of unsecured debt include:
- Credit card debt
- Personal loans
- Medical bills
- Utility bills
- Back rent
- Government benefit overpayments
Secured debt, then, is property secured by collateral such as a vehicle or house. Your creditor can seek repayment by repossessing the property or placing a lien against it if you’re behind on payments. If you are up to date on payments for these things but have little or no equity in them yet, your other creditors cannot seek to claim them as payment.
How Do I Qualify for Chapter 7?
Qualifying for this type of bankruptcy is less about what you owe in overall debt and more about other aspects of your life, such as income, family size, and how much secured debt and arrears are tied to you.
You will first undergo a “means test” to determine whether or not your household’s income is below California’s median income. Documentation going back at least six months is also required and should account for expenses such as your mortgage payments, groceries, clothing, medical costs, and other “allowable” expenses. Other expenses are considered disposable income that could be put toward paying off your debt.
If you pass the means test, you’re cleared to file for Chapter 7 in Orange County. If you fail the means test, you may undergo the process again in six months if you think your situation would change enough to pass.
A member of our team will be in touch shortly to confirm your contact details or address questions you may have.
What is the Means Test?
In order to qualify for Chapter 7, you must pass the means test. It was designed to restrict the number of people who could have their debts forgiven. The test calculates whether or not you have enough disposable income to repay your debts while being able to continue living comfortably. This means that there should be enough monthly income to pay off a part of your debt after specific expenses are subtracted. The test takes a look at your income, expenses, and the size of your family.
How Long Does Chapter 7 Bankruptcy Take?
It can take between 4 to 6 months from your initial filing in order to discharge your debt via Chapter 7. At Financial Relief Law Center, APC, our team is prepared to walk you through each step of the process!
As soon as your petition is filed, an "automatic stay" is issued by the bankruptcy court, which will stop creditors from coming after you. This means, no more lawsuits, phone calls, or wage garnishments. If your bankruptcy trustee is satisfied by your filing, then you can be confident that your debt is eligible for discharge. It may take longer if the trustee needs to ask you to submit additional documents or it is necessary for property to be sold to repay the creditors.
Bankruptcy can be an intimidating, but it’s important to recognize that it can also be an important tool to clear the foundation for a better and more stable financial situation. If you need support, reach out to the bankruptcy attorneys at Financial Relief Law Center, APC for help.
Hear From Our Happy Clients
At Financial Relief Law Center, APC, your satisfaction is our priority! See for yourself what our clients have to say about working with us.
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I interviewed a couple of law firms and feel grateful and blessed for Financial Relief Law Center. Victor Ugarte is beyond amazing. Compassionate, empathetic, and very knowledgeable.- Debora S.
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Andy was very helpful and professional in guiding me to Amanda who sat with me and really offered the most genuine perspective on how to handle things.- Adam G.
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As the process moved forward Amanda stepped in and also was very explanatory and helped me prepare for court. In the end, I am very glad I chose this firm and I would recommend them to anyone who is contemplating bankruptcy.- J.J.
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I went to the financial law center in July 2018, I met with Darren DiMarco initially, then I met with Andy Warshaw. This law center helped me tremendously when I had nowhere else to turn!- Timothy W.
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Bankruptcy was a "daunting time" for me... It felt like as shroud of clouds was lingering in the upper regions of my mind. However, that quickly evaporated when Andy Warshaw came into the scene!- Javier A.
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Andy Warshaw is truly amazing! The Financial Relief Law Center will answer all of your questions and look out for what is best for YOU!- Nata E.
What Sets Us Apart?
As attorneys who routinely support consumers in potentially dire financial straits, we are empathetic and compassionate about what these problems mean to our clients. More importantly, we’ve grown to understand how important it is that we only deliver our best possible work so our clients’ chances of getting the best possible outcome are secured.
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30+ Years of Combined Legal ExperienceOur team of attorneys has extensive knowledge of bankruptcy and estate planning law, with over three decades of combined experience between them.
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Solutions Fit for Your Unique CaseNo two individuals, or their cases, are ever identical. We seek to provide viable solutions that your unique case deserves.
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Constant Client CommunicationYou won't be out of the loop! We make sure all of our clients are up-to-date with the status of their case.
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Free ConsultationsWhy pay to have a conversation? Our phone, video and in-person consultations are 100% complimentary.
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