Ontario Chapter 7 Bankruptcy Lawyers
Many of us have debts that we just can’t repay, no matter how hard we try. It often seems as though debts keep piling up until they get out of hand. Many Californians have high levels of unsecured debt. This refers to debt not tied to any collateral. This includes credit cards, medical bills, personal loans, and payday loans. If you are struggling to repay these debts, you can do so and get a fresh financial start with the help of Chapter 7 bankruptcy.
Chapter 7 bankruptcy can clear all unsecured debts off your record in just four months. While it can be a quick and easy option, not everyone can qualify. Can Chapter 7 bankruptcy help you? Contact the Ontario Chapter 7 bankruptcy lawyers from Wadhwani & Shanfeld to see for yourself.
How Does< Chapter 7 Bankruptcy Work?
When you file for Chapter 7 bankruptcy, a bankruptcy trustee will oversee your case. The first step is to submit information about your debts, income, property, and monthly living expenses, as well as any property you owned or sold in the last two years. The trustee will determine if there are any unprotected assets that can be sold to help pay off your creditors.
The good news is that you won’t be left with nothing. The trustee cannot sell the things you need to survive. California does offer generous exemptions to protect assets. Most Chapter 7 bankruptcy cases do not require you to sell assets. However, if you have unprotected valuables or property, those will likely be sold. If you want to keep your car, house, and other assets, you may need to consider Chapter 13 bankruptcy instead.
How to Qualify for Chapter 7 Bankruptcy
In order to qualify for Chapter 7 bankruptcy, you have to pass a means test. This test is designed to weed out those who have the financial capability to repay their debts under Chapter 13. To pass the means test, you must prove that you cannot afford to repay your debt.
The means test compares your income to the median income of the same household size in your county. If your income is lower than the median income, you pass the means test. But if your income is higher than the median income, you may still be able to qualify. You would have to pass the Full Means Test, which is more thorough.
The Full Means Test compares the debtor’s income to their expenses, basing their eligibility on their disposable income. This test involves deducting all household expenses from the debtor’s gross income, including housing costs, taxes, insurance, utilities, medical expenses, and child. If a debtor does not have any disposable income after accounting for all these expenses, then they are eligible to file for Chapter 7 bankruptcy.
Contact Wadhwani & Shanfeld Today
If debt has become a burden, you can find relief. Chapter 7 bankruptcy can help. Bankruptcy can be a great way to get a fresh start and start over. The team at Wadhwani & Shanfeld can help. Contact our experienced Ontario Chapter 7 lawyers by calling (800) 996-9932.
