Chapter 7 Bankruptcy Attorney Los Angeles
Wadhwani & Shanfeld — Helping You Choose the Ideal Path to Financial Freedom
When you call or sit down with a knowledgeable Los Angeles Chapter 7 bankruptcy lawyer from our team, we can help you discover which debt relief solution is best suited to your needs. Our lawyers have helped more than 25,000 people across California. We have more than 75 years of collective experience and a reputation in the Southern California community for aggressive advocacy and informative counsel.
Don't hesitate to obtain the professional assistance you need to get your finances back on track. Call Wadhwani & Shanfeld today to speak with our team and get a free case evaluation!
We Provide Practical, Customized Debt Relief Solutions
Chapter 7 bankruptcy is the most common form of bankruptcy that allows the filer to achieve financial freedom from debt in the most efficient manner possible by eliminating unsecured debts. Debt is considered "unsecured" if it is not attached to a material form of collateral.
Examples of unsecured debt include:
- Credit card debts
- Medical bills
- Personal loans
- Payday advances
Chapter 7 bankruptcy in California offers many benefits, such as enabling you to clear your debt in as little as 4 months. While Chapter 7 bankruptcy is beneficial because it is the quickest and easiest option for a debt-free future, not everyone can qualify.
Chapter 7 Bankruptcy Eligibility in CA - The Means Test
Also known as "straight" or "liquidation" bankruptcy, Chapter 7 bankruptcy can only be filed by individuals who pass the qualifying means test. This test was established by the United States Congress in 2005 and is designed to weed out individuals who have the financial capability to repay their debts under the Chapter 13 bankruptcy repayment plan option.
In order to pass the means test, you must demonstrate that you cannot afford to repay your debt.
- First, 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, we are able to qualify many of our clients whose income is higher than the median income.
There are many factors that can influence your eligibility for Chapter 7 bankruptcy. We encourage you to contact our Los Angeles Chapter 7 bankruptcy attorneys to learn more whether you qualify and if is the right choice for you.
How Does Chapter 7 Bankruptcy Work?
When you file for Chapter 7 bankruptcy, you give the bankruptcy court control over your financial affairs. First, will submit information about your debts, property, current income, monthly living expenses, and all the money you spent, and the property you owned, sold, or gave away in the last two years. Then, the bankruptcy trustee assigned to your case will liquidate (sell) your nonexempt assets and pay your creditors as much as possible.
Your trustee cannot sell the things you need to survive, and in most Chapter 7 bankruptcy cases, the trustee finds nothing of value to sell. If you have valuables you would like to hold on to, however, Chapter 7 bankruptcy may not be the best option for you.
Alternatives to Chapter 7 Bankruptcy
If you have a regular income, a Chapter 13 bankruptcy may be a better choice for you. One benefit of a Chapter 13 filing is that you can save your home from foreclosure. Chapter 13 may also be a better option if you do not pass the means test (see above) or you want to hold on to valuable property (family heirlooms, coin collections, etc.)
Chapter 7 bankruptcy is often referred to as a “liquidation” bankruptcy, so if you don’t want to sell your property, a Chapter 13 bankruptcy or “wage earner’s plan” may be preferable. Sometimes, debt relief agencies can help you negotiate debts and get rid of them without filing for bankruptcy at all.
Call us at (800) 996-9932 or contact us online to discuss Chapter 7 bankruptcy and its alternatives today.
Invaluable Bankruptcy Insight
Attorneys Raj Wadhwani and Greg Shanfeld are Board-Certified Bankruptcy Specialists who leverage their insight on behalf of clients.
Our legal team does all of the work for you, including filing paperwork, keeping track of deadlines, and providing protection from creditors.
Experience Where it Counts
Our attorneys have over 65 years of collective experience helping clients in a broad range of bankruptcy and debt settlement cases.
A Prolific Record of Success
Our firm has successfully helped more than 20,000 people put the pieces of their lives back together after a bankruptcy.