Chapter 7 Bankruptcy Lawyer in Orange County
Do I qualify for liquidation bankruptcy?
In the United States, there are different ways that individuals can file
for bankruptcy. Most people seeking bankruptcy protection will file under
Chapter 7 or
Chapter 13 of the United States Bankruptcy Code. Filing under Chapter 7 can give
you the opportunity to eliminate your outstanding debt, as it is the liquidation
form of bankruptcy that essentially wipes out all of your debt.
This method is beneficial to those who do not have any income source, or
only have a little of money left to pay back the debts. In order to qualify
for Chapter 7, you will need to take the
means test, which will determine if you have any disposable income to pay back to
your creditors. If you do not have enough disposable income, you will
be allowed to file for bankruptcy under Chapter 7.
Asset Protection in Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, non-exempt assets are sold, or liquidated, to
pay your creditors–the ones that are exempt will be determined by
state laws. Your non-exempt assets are sold by your assigned bankruptcy
trustee, and the proceeds are used to pay off your creditors. Any remaining
debts are discharged, which means you will no longer have a legal responsibility
to pay them. Our
Orange County bankruptcy attorney may be able to help you protect as many of your assets as possible from
In many cases, not all of your assets have to be liquidated, allowing you
to protect some. There are various assets in a Chapter 7 bankruptcy that
will be considered exempt based on what type of property it is, and its value.
Some of assets that are eligible to be exempt include:
- Social Security Benefits
- Unemployment Benefits
- Veteran's Benefits
- Disability Benefits
At 1st California Law, we are able to assist you with cataloging your property
and determining which assets you will be allowed to keep. When you work
with our firm, we help you through each stage of the process at reasonable rates.
For further information on discharging your debts,
contact our firm at your earliest convenience!