Chapter 7 Bankruptcy Attorneys in San Diego

Discharge Unsecured Debt, From Credit Cards to Medical Bills

The term “bankruptcy” can sound like a terrifying phrase to many who do not know the deeper purpose behind it, but in reality, bankruptcy can offer a profound solution of a fresh start to you and your family. Chapter 7 bankruptcy is an extremely helpful way of erasing mountains of debt. However, the process of filing for it can be admittedly quite complex if you are attempting to do it on your own. Being able to carefully keep track of every single deadline for required paperwork, making sure you have turned in the right documents at the right time, and arranging necessary meetings with your trustee is both exhausting and almost impossible to do independently.

Moreover, if you are unable to satisfy each of these mandatory procedures, your case could be simply dropped, and the pile of debts will come flowing back. This is why it is crucial that you are supported by dedicated Chapter 7 lawyers in San Diego. You can count on Debt Relief Legal Clinic to safely navigate you through the arduous Chapter 7 bankruptcy process.

Call (619) 639-9228 or send us a message online to learn more.

How Does Chapter 7 Bankruptcy?

Other common names for Chapter 7 bankruptcy include the terms “straight bankruptcy” as well as “liquidation.” For any unfortunate individuals or businesses who have been negatively affected by external pressures and are no longer able to repay their huge mountain of debts, Chapter 7 is often the appropriate solution.

If you currently have any possessions available to be used, these items can be liquidated into monetary values that will then pay back a great deal of your debt. Whatever debts are remaining will then be completely forgiven and discharged. In the event that you do not have any valuable possessions, the debts will still be wiped out completely. While such discharge is only available for individuals rather than businesses, even business debtors have the great benefit of liquidating assets and property, which they often could not use anyways. The cash from these assets can greatly decrease the amount of remaining debt.

Do I Qualify for Chapter 7 Using The Means Test?

Not everyone will be able to file for Chapter 7, as there are restrictions on who can file based on income. Typically, Chapter 7 is reserved for those with lower incomes, while Chapter 13 is for high wage earners.

In order to qualify for Chapter 7, you must pass the means test, which measures your income against the median income of your state:

• If your current monthly income is less than your state's median income based on your household size, then you pass the means test.

If your monthly income exceeds the state's median, then you do not pass the means test. However, you may be able to delay filing until you can pass the means test or consider filing for Chapter 13 instead. Consult a bankruptcy attorney to help you determine if you are eligible.

Types of Debts That Are Dischargeable Under Chapter 7

Many of our clients are surprised and encouraged by the sheer number and categories of debts that can be discharged through Chapter 7 bankruptcy.

This list of dischargeable debts includes:

• Personal loans
• Credit cards
• Leases
• Debts made on account of business
• Guaranties
• Medical bills
• Claims for negligence
• Remaining funds for repossession claims
• Judgments
• Claims for accidents from automobiles
• Certain claims on taxes

Why Hesitation Can Harm You

For Chapter 7 bankruptcy cases, the faster you get your application in, the more likely you are to succeed in winning it. Delays only complicate your case, and they also allow your creditors more time to keep harassing you, or even make a move on foreclosing your house or repossessing your car. The sooner you start the process, the sooner our Chapter 7 Attorneys in San Diego can direct you to discover all the exemptions and discharges you can receive to finally give you a fresh start.

Contact us at (619) 639-9228 so that Debt Relief Legal Clinic can aid you in wiping your financial slate clean.