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Chapter 7 Bankruptcy

LOS ANGELES CHAPTER
7 BANKRUPTCY LAWYER

CHAPTER 7 BANKRUPTCY LAWYER IN LOS ANGELES

In Chapter 7 bankruptcy (also referred to as a “liquidation” bankruptcy), the debtor will surrender a portion of their nonexempt assets to a Bankruptcy Trustee. The Trustee will sell then move to sell those assets in order to pay the debtor’s unsecured debts. After this process, the remainder of the unsecured debt is discharged. Chapter 7 bankruptcy focuses mostly on unsecured debts, such as credit card debt or medical bills.

In contrast, secured debts, such as your mortgage or automobile loan, cannot be fully discharged in bankruptcy unless you are surrendering them.

Who can file for Chapter 7 bankruptcy?

In order to qualify for a Chapter 7 bankruptcy, you must pass the Means Test. If you earn less than the California median income, you will automatically be eligible for a Chapter 7 bankruptcy.

If you earn more than the state median income, you can still pass the Means Test, but it gets more complicated. The Means Test takes into account your income and your expenses and compares them to standards in California to determine whether you can reasonably repay your debts under Chapter 17. If you can, you will be required to file under Chapter 13.

What debts does Chapter 7 discharge?

Chapter 7 bankruptcy aims to discharge unsecured debts. However, you cannot discharge most student loan debts or spousal support debt. Personal injury debts, incurred while driving drunk, also are excluded from discharge.

Will bankruptcy protect me from foreclosure and repossession?

When you file for bankruptcy, you are protected under the automatic stay. The automatic stay forces creditors to stop all collection actions. Once you file for bankruptcy, all of your creditors must work through the bankruptcy court. As a result, foreclosure or collection attempts are halted to ensure a fair bankruptcy process for all parties involved.

What will I lose?

The Trustee can only sell nonexempt property. Under The California Code of Civil Procedure §703 and §704, California offers a choice of two different exemptions to protect a debtor’s property in bankruptcy

Under System 1 (§704), you can protect:

  1. Homestead: Equity in a residence up to $75,000 for a single person under the age of 65; equity in a home for a married couple of up to $100,000; and equity in a home up to $175,000 for those over 65, disabled, or low-income persons over the age of 55.
  2. Motor Vehicle: Up to $2,900 total may be applied to motor vehicles.
  3. Building Materials or Home Maintenance: Up to $2,875 in building materials to improve/maintain a home.
  4. Jewelry, Heirlooms, and Art: Up tot $7,625 worth. (Doubling not permitted by spouse)
  5. Health Aids
  6. Food, Clothing, Appliances, and Furnishings
  7. Wages: Up to 75% of wages earned 30 days prior to filing for bankruptcy.
  8. Pensions: Tax exempt accounts (e.g. 401(k)s, 403(b)s); IRAs and Roth IRAs up to $1,171,150; public retirement benefits; private retirement benefits.
  9. Public Benefits: Unemployment Benefits; worker’s compensation; aid to the elderly or disabled; student financial aid.
  10. Tools of Trade: Tools, materials, commercial vehicles, and equipment.
  11. Insurance

Under System 2 (§703), you can protect:

  1. Miscellaneous Property (“Wildcard Exemption”): The value of the homestead may be combined with the values of other forms of property up to a total of $26,425.
  2. Motor Vehicles: Up to $5,100 total may be applied to motor vehicles.
  3. Jewelry: Up to $1,425
  4. Pensions: Tax exempt accounts (e.g. 401(k)s, 403(b)s); IRAs and Roth IRAs up to $1,171,150; public retirement benefits; private retirement benefits.
  5. Public Benefits: Unemployment Benefits; worker’s compensation; aid to the elderly or disabled; student financial aid.
  6. Tools of Trade: Tools, materials, commercial vehicles, and equipment
  7. Insurance

Chapter 7 debtors can generally use exemptions to protect most, if not all, of their important assets. The overwhelming majority of Chapter 7 cases are “no-asset” cases, meaning the debtors keep all of their property through the exemptions.

How Barm Law can help

Although these are general tips, everyone’s financial situation is different. If you are currently struggling with overwhelming, we can discuss your unique circumstances, what your goals are, and discuss every option you can utilize to make you financially solvent again.

Contact Barm Law For Your Chapter 7 Bankruptcy Now

If you or someone you know are interested in filing chapter 7 bankruptcy, you need to contact BARM LAW offices in Los Angeles for your free case evaluation. Our lawyers will advise you for the best compensation for your injuries. We will investigate your case thoroughly and negotiate with the insurance companies aggressively, we are not afraid of going to trials with the insurance companies.

Call us now at 1 (833) BARM-LAW or 1 (833) 227-6529 or email us by filling the contact form.

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TESTIMONIALS

“We have worked with Barm Law for the past 5 years. As we have grown and evolved, what I have valued most about our relationship is that Barm Law know us and our business.”

Hamlet Torossian, PC Repair Glendale

Rosie is by far the best lawyer I’ve ever gotten to work with.   I was hit in a head on collision in December when I found Rosie to represent me.  She has saved me SO much time and money already,  I could not be more thankful for meeting her.  Her response time to texts, emails, & calls is immediate almost every time…even when she was on vacation.   On top of all that she is a truly great person who legitimately cares about you, and makes sure you know it.  I have already recommended her to all my friends…and would recommend her to anyone else as well.  Great lawyer! Great company!   Had to write a review:)

A friend recommended me to Barmlaw after my car accident  Rosie lead Esq and her staff were all fantastic.They were extremely knowledgeable about each step of the process, making sure I understood and felt comfortable with the process,my case was settled with other insurance co. beyond my expectation .
Thank you!!!!!!!!!!!!!!!

LEGARD P., Burbank, CA

Rosie is so helpful and very professional! She understood exactly what I was going through and the stress I endured because of it. She reassured me everything would be just fine. I am a worry-wart naturally but found the process with her so much less stressful than I anticipated. Rosie promptly got back to any questions I had and told me everything I needed to know. I couldn’t ask for more! I am very happy that I chose her at such a difficult time. If I had to do it all over again I’d still go with her. She is very organized and informative as well as nice. Thank You Rosie, I couldn’t appreciate her help more!!

J M, Burbank, CA

Rosie Barmakszian is a true professional who truly cares about her client and gets things done.  She takes the time to truly understand your situation and then works tirelessly to get done what needs to be done.  She did a wonderful job of taking all of my information, organizing all of my documents, and then did a terrific job with my formal petition. She let’s you know what’s going to happen every step of the way.  She is also very affordable and this is key for those with financial distress.  My legal issues went very smoothly thanks to Rosie.  I would highly recommend her.

Jonathan W., Los Angeles, CA

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