Filing a Chapter 7 Bankruptcy Petition in Orange County
According to the Administrative Office of the U.S. Courts, nonbusiness bankruptcy filings rose 34 percent in 2008-2009, compared to filings during the 2007-2008 period.
Families and individuals across the nation are filing bankruptcy petitions at a higher rate than in previous years. People are using bankruptcy to escape unmanageable debts and creditor harassment. The economic downturn did not help. Many people carrying heavy debt loads also faced layoffs, wage cuts or cutback in hours.
Chapter 7 bankruptcy, in particular, can be a welcome port in a financial storm for individuals or families drowning in debt.
At the Law Offices of Friske and Hilliard, our attorneys help individuals and families throughout Orange County understand the bankruptcy process. We will analyze your finances and do the calculations to determine if you qualify for Chapter 7 bankruptcy.
Our experienced bankruptcy lawyers provide guidance every step of the way if you decide to file a Chapter7 bankruptcy petition - from the pre-filing credit counseling session to the day your debts are discharged. To schedule a free initial consultation, call 714-881-0439 or use our online contact form.
Qualifying for Chapter 7 Bankruptcy
To qualify for Chapter 7 bankruptcy, you must show that your earnings are below a certain level or that you have extremely high debt relative to your income. If you do not pass the income or means test to file a Chapter 7 bankruptcy petition, you may still qualify for Chapter 13 bankruptcy.
In an average case, the Chapter 7 bankruptcy process takes about three months from beginning to end. After you pass the means test and attend the required pre-filing credit counseling session, you file the bankruptcy petition listing your assets and debts. Assets and debts both fall into one of two categories: exempt or non-exempt.
An exempt asset is an asset that you cannot be forced to sell to pay back your debts. Common examples of exempt assets include the primary home and the primary car. If you have non-exempt assets, you may have to sell them to satisfy some of your debts. Your bankruptcy lawyer can advise you further. Exempt debts are debts that will not be discharged (erased) in Chapter 7 bankruptcy. Common examples of exempt debts are child support back payments, most overdue taxes, and student loan debt.
After you file the petition, you and your bankruptcy attorney attend a trustee's meeting where creditors can appear and object to the proposed discharge of your debts. After the trustee's meeting, you attend one more credit counseling session. The next step is usually the formal discharge of all your qualifying debt.
Learn More About Chapter 7 Bankruptcy From Honest and Practical Attorneys
Chapter 7 bankruptcy is an excellent debt relief option for many people who are overwhelmed by debt and cannot see any near-term financial changes that will allow them to make repayments. Before you file a bankruptcy petition, however, discuss all your debt relief options with a knowledgeable debt relief attorney.
When you work with the Orange County Law Offices of Friske and Hilliard, you will always work directly with an attorney. To schedule a free and private consultation, contact us online or call 714-881-0439.
Hours: Monday through Thursday 9:00 a.m. - 4:00 p.m.
