Chapter 7 And Chapter 13 Bankruptcy Code Los Banos CA

If an individual finds that non bankruptcy alternatives are not feasible, a decision then must be then made between filing a Chapter 7 liquidation proceeding or a debt adjustment proceeding under Chapter 13.

Maria V. Primushko
(818) 988-0077
6039 Woodman Ave
Van Nuys, CA
Specialties
Bankruptcy, Chapter 7, Chapter 13, Car Accident
Education
Univ of West Los Angeles
State Licensing
California

Kathryn Ursula Tokarska
41700 Ivy Street, #A
Murrieta, CA
Specialties
Bankruptcy, Foreclosure, Chapter 13
Education
California Western SOL,Thomas Jefferson School of Law,Eckerd College
State Licensing
California

Peter Veiguela
(818) 501-3800
15910 Ventura Blvd 12fl
Encino, CA
Specialties
Commercial, Chapter 11, Chapter 13
Education
Northwestern Univ SOL,Tulane Univ
State Licensing
California

Michael Shemtoub
(323) 655-7005
8383 Wilshire Blvd, Suite 702
Beverly Hills, CA
Specialties
Chapter 7, Real Estate, Chapter 13
Education
UC Hastings COL,Univ of California at Los Angeles
State Licensing
California

Roya Rohani
(949) 545-8458
263 Calle Aragon Unit B
Laguna Woods, CA
 
John Clayton Colwell
121 BROADWAY STE 336
SAN DIEGO, CA
 
David Earl Britton
7777 ALVARADO RD STE 422
LA MESA, CA
 
Gary Allan Sehnert
(619) 338-4057
402 W Broadway Ste 2050
San Diego, CA
Specialties
Bankruptcy, Chapter 7, Chapter 13
Education
California Western SOL,Univ of California Riverside
State Licensing
California

Michael Erik Clark
(800) 509-3200
100 N BARRANCA ST UNIQUE STE CODES
WEST COVINA, CA
 
Stephanie Marie Seidl
(213) 617-4177
333 S Hope St 48th Fl
Los Angeles, CA
 

Chapter 7 And Chapter 13 Bankruptcy Code

Individuals who have amassed large debts have many options. However, if an individual finds that non bankruptcy alternatives are not feasible, a decision then must be then made between filing a Chapter 7 liquidation proceeding or a debt adjustment proceeding under Chapter 13.

A Chapter 7 bankruptcy filing is best described as obtaining a discharge from debts (with some exceptions) while retaining some assets such as a home, household goods and an automobile as long as they do not exceed certain values determined by the U.S. Bankruptcy Code. Chapter 7 is consider a “liquidation” decision however if filed correctly and using the Bankruptcy Code to the best of your ability some assets can be retained while crushing debt is removed.

To be eligible to file a Chapter 7 bankruptcy the filer has to reside or be domiciled in the United States. In addition, they can not have been a debtor in a bankruptcy case in the 180 day period prior to filing the current bankruptcy case; they must receive counseling from an approved nonprofit budget and credit counseling agency prior to the filing and pass the “median family income” test. In order to receive a discharge in a Chapter 7 an individual may not have received a Chapter 7 bankruptcy discharge in the previous eight years or a Chapter 13 discharge in the previous six years.

The element which will fully determine if you can file a Chapter 7, is the “median family income” level. The individual or couple must review income made within the previous six months and average it out. If when the average income is measured against the “median family income” as stated in 11 U.S.C. 707(b)(7) and it falls below, then a Chapter 7 filing is appropriate. If the household income exceeds the “median family income”, then the individual or couple will be subject to the means testing. The means testing calculation takes the average amount of the income received during the six month period prior to the bankruptcy filing and subtracts it from the average monthly expenses. This determines the margin of excess income. Using this figure you determine if the excess income exceeds the margin allowed by 11 U.S.C. 707(2)(A)(i) and if you are eligible to file a Chapter 7 bankruptcy.

If you are unable to file for Chapter 7 due to the “median family income” level being too high and failing the means testing, then your other option is filing a Chapter 13. A Chapter 13 bankruptcy filing allows a person to seek protection of their property and develop a plan of paying creditors by making monthly payments to a Trustee under Court supervision. The plan can be for as little as 24 months or for as long as 60 months.

To be eligible to file a Chapter 13 bankruptcy the filer must reside in the United States, have a regular income, have unsecured debt less hand $336,900 and secured debt less than $1,010,650 and receive counseling from an approved non profit budge and credit counseling agency. In order to obtain a discharge in a Chapter 13 an individual must not have been granted a discharge in a Chapter 7 bankruptcy in the previous 4 years or been granted a Chapter 13 discharge in the last 2 years.

The primary advantage of a Chapter 13 filing over a Chapter 7 filing is that a debtor by paying a portion of his or her pre bankruptcy debts over the life of the Chapter 13 plan can obtain a discharge of the unpaid balances while retaining all of their asset, avoid foreclosure of a home and more debts are deemed dischargeable in a Chapter 13 verses a Chapter 7.

The disadvantages to a Chapter 13 verses a Chapter 7 is that the filer will have to pay something to unsecured creditors, a reduced amount against entire debt. However in a Chapter 7 filing it could result in a discharge from most or all pre bankruptcy obligations without any payments. Another disadvantage to a Chapter 13 is that a discharge will not be received until all payments required by the plan are done whereas a Chapter 7 debtor will usually receive a discharge in three to five months from filing.

It is essential that when trying to figure out if bankruptcy is the right option to contract an attorney to discuss the entire matter, review your current financial situation, determine what is most important to keep and let go and decide which is the best plan for their situation.

The forgoing article about bankruptcy choices was drafted by The law office of Goldstein and Clegg, LLC. More information can be found on their blog, http://www.goldsteinandclegglaw.com/bankruptcy_blog



Provided by ZingArticles.com