Chapter 7

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, 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 with 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. It's not just about erasing debts but offering a legal path to reset your finances, ensuring you can start again without the previous burdens holding you back.

Contact us online or call (949) 787-1889 for a free consultation at Financial Relief Law Center. Speak with an Irvine, California Chapter 7 attorney today!

Chapter 7 Bankruptcy in Irvine

Chapter 7 is the most common form of bankruptcy in the United States. Available to most individuals and businesses in Orange County, Chapter 7 is often called “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. Working with a Chapter 7 bankruptcy lawyer in Irvine can help analyze your situation and guide you through potential exemptions and strategies to protect your assets.

Related: A General Timetable for Chapter 7 Case Filings

Understanding Local Bankruptcy Laws

California has its own set of regulations that can impact your Chapter 7 filing. In California, debtors can choose between state and federal exemption systems to protect their property, which requires careful consideration and planning. Working with a Chapter 7 bankruptcy lawyer in Irvine who understands local laws can help you make informed decisions about which exemptions to claim, optimizing your protection under these guidelines.

Frequently Asked Questions

How Long Does Chapter 7 Bankruptcy Take?

It can take between 4 to 6 months from your initial filing 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, the bankruptcy court issues an " automatic stay, " which will stop creditors from coming after you. This means no more lawsuits, phone calls, or wage garnishments. If your bankruptcy trustee is satisfied with your filing, you can be confident your debt is eligible for discharge. It may take longer if the trustee needs to ask you to submit additional documents or if property must be sold to repay the creditors.

What Happens to My Home in Chapter 7 Bankruptcy?

In Chapter 7 bankruptcy, your home could be subject to sale if it has equity. However, California offers homestead exemptions that may protect your property up to a certain amount. The complexity of homestead exemptions varies, so having legal advice from a Chapter 7 bankruptcy attorney in Irvine can help you understand and apply these exemptions correctly. By planning strategically, it's often possible to retain your home even during bankruptcy proceedings, which can provide a sense of security amid financial uncertainty.

How Does Chapter 7 Affect My Credit Score?

Filing for Chapter 7 bankruptcy will impact your credit score. Initially, the score is likely to drop, but most individuals find that this is a worthwhile trade-off for the ability to eliminate burdensome debts. Over time, the action of eliminating debts and beginning to manage new credit responsibly can lead to credit score improvement. Many find they can secure new lines of credit within a year or two, often with better terms after previous debts are discharged.

Can All of My Debt Go Away with a Chapter 7 Lawyer?

Not all of your debt will clear in Chapter 7, but most of it can. If you owe a considerable amount of unsecured debt – money owed that’s not secured by collateral – most of it can be discharged during bankruptcy. This includes debts accumulated from credit facilities, and those not involving specific personal property as collateral.

Common types of unsecured debt include:

Credit card debt
Personal loans
Medical bills
Utility bills
Back rent
Government benefit overpayments

Secured debt 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. Consulting with a Chapter 7 bankruptcy attorney can ensure you're managing these secured debts effectively during the bankruptcy process.

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What Is the Means Test for Chapter 7 Bankruptcy?

To qualify for Chapter 7 bankruptcy, you must pass the means test, which determines whether you have enough disposable income to repay your debts while maintaining a reasonable standard of living. The test evaluates your household income over the past six months, comparing it to the median income for a similar household in California.

If your income is below the state median, you may qualify. You'll need to provide documentation of your income and expenses for at least six months, including items like mortgage payments, groceries, clothing, medical costs, and other allowable expenses. Any remaining income after these necessary expenses is considered disposable and could be used to pay down your debts. The means test is designed to ensure that Chapter 7 is reserved for those who truly need financial relief.

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 will change enough to pass.

Understanding the Chapter 7 Bankruptcy Process

Chapter 7 bankruptcy can provide a fresh start for individuals struggling with overwhelming debt. It allows for the discharge of certain types of debt, giving you the opportunity to regain control of your finances and move forward with a clean slate. Our experienced Irvine bankruptcy attorneys can guide you through the entire Chapter 7 process, from determining your eligibility to completing the necessary paperwork and representing you in court. This comprehensive approach ensures all facets of the process are managed efficiently to your benefit.

Key aspects of the Chapter 7 bankruptcy process include:

Evaluating your eligibility based on income and assets
Filing the necessary paperwork with the bankruptcy court
Attending a meeting of creditors with the trustee assigned to your case
Completing a financial management course as required by law
Receiving a discharge of qualifying debts, typically within a few months

At Financial Relief Law Center, APC, we are dedicated to providing personalized attention and support to our clients throughout the Chapter 7 bankruptcy process. Let us help you take the first step toward financial freedom.

How Our Chapter 7 Attorney Can Help You

Comprehensive Case Evaluation: The first step in the bankruptcy process is thoroughly evaluating your financial situation. We will review your income, expenses, assets, and debts to determine if Chapter 7 bankruptcy is your best option. This evaluation helps us identify any possible issues and develop a strategy tailored to your needs.
Qualification Assessment: Not everyone qualifies for Chapter 7 bankruptcy. We will conduct a means test to assess your eligibility. This test compares your income to the median income for a household of your size in California. If your income is below the median, you likely qualify for Chapter 7. If it is above, we will explore other options, such as Chapter 13 bankruptcy.
Preparation and Filing of Bankruptcy Petition: The bankruptcy petition is a critical document that requires accurate and comprehensive information. We will help you gather all necessary documentation, including income statements, tax returns, and a list of assets and liabilities. We will help prepare and file the petition on your behalf, ensuring that it complies with all legal requirements.
Automatic Stay Protection: Once your bankruptcy petition is filed, an automatic stay goes into effect, halting most collection actions against you. This means that creditors must stop calling, lawsuits are paused, and foreclosure proceedings are temporarily halted. We will ensure that your rights are well protected under the automatic stay provisions.
Representation at the 341 Meeting: Approximately 20 to 40 days after filing your petition, you will be instructed to attend a meeting of creditors, also known as the 341 meeting. We will accompany you to this meeting, where the bankruptcy trustee and creditors may ask questions about your financial situation and the information in your petition. We will prepare you thoroughly and represent your interests throughout the process.
Exemption Planning: One of the key benefits of Chapter 7 bankruptcy is the ability to exempt certain assets from liquidation. We will help you maximize your exemptions to protect as many of your assets as possible, such as your home, car, and personal belongings.
Discharge of Debts: Upon successful completion of the Chapter 7 process, most of your unsecured debts will be discharged, providing you a fresh financial start. We will guide you through any post-discharge requirements and help you rebuild your financial life.

Get Help from a Chapter 7 Bankruptcy Lawyer in Irvine

If you’re considering Chapter 7 to free yourself from overwhelming debt, consult with our Irvine, California bankruptcy attorneys for help. We emphasize working with individuals and corporations on a personal level to build a legal strategy that helps you get the most out of your bankruptcy. You can expect to be treated by our attorneys with compassion through the process as we work together to help you achieve your goals.

For a free consultation, contact us online or call (949) 787-1889 and tell us you’re interested in meeting with our Irvine Chapter 7 lawyers to discuss your options in Chapter 7. We serve businesses and individuals in Irvine.

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At Financial Relief Law Center, APC, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

"Very grateful. Specialized professionals. Excellent care."
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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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.

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Having Amanda by my side in court took away a lot of my fear and thankfully my debt was discharged in August 2019.

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The staff is knowledgeable and friendly. Ronda was most helpful in more ways than one. My family and I will forever be grateful for their professional service and hard work.

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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.

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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.

30+ Years of Combined Legal Experience
Our team of attorneys has extensive knowledge of bankruptcy and estate planning law, with over three decades of combined experience between them.
Solutions Fit for Your Unique Case
No two individuals, or their cases, are ever identical. We seek to provide viable solutions that your unique case deserves.
Constant Client Communication
You 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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