Los Angeles Personal Bankruptcy Attorney
Bankruptcy
During your free consultation, we review your overall debt obligations and determine whether chapter 7 or 13 bankruptcy is right for you. As your personal bankruptcy lawyer, we utilize technology to make the process more affordable, and efficient for you and your family.
We make sure to protect most of your assets under the exemptions to avoid any potential liquidation.
What Is Bankruptcy and Is It Right for Me?
Bankruptcy is a federal process that allows debtors to have certain “qualifying debt” to be either discharged (wiped out!) or organized into a repayment plan. There are different chapters of bankruptcy under the code which offer different solutions to debtors.
Chapter 7 is the simplest and easiest form of bankruptcy in which the consumer could have their “qualifying debt” discharged and get a “Fresh Start”.
Chapter 13 is a reorganization of your debt where you will pay back a portion of the unsecured debt that you owe.
Which debt is not qualified to be cleared, and which debt is wiped out under a Chapter 7 bankruptcy?
Generally, the type of debt that could typically be wiped out (discharged), is called “qualifying debt”. That type of debt includes but is not limited to credit cards, most unsecured loans, most medical debts, private non-governmental loans, certain taxes, and many other types of unsecured debt. To find out whether the type of debt you are dealing with could be wiped out, it is best to consult with us so we can better understand your debt obligations.
To get a fresh start under Chapter 7, your debt must be "qualified" and you must pass the “means test”.
What is the “Means Test”?
The means test considers your income, expense, and family size to determine whether you have enough disposable income to repay your debt. If your income (after expenses) is below the means test, you will pass the means test. If your income is above the means test, you do not qualify for Chapter 7.
Those who do not qualify for Chapter 7 could still restructure their debt and pay it off through a Chapter 13 bankruptcy.
Will I lose all my property? No! Exemptions can protect most of your assets!
Even after a Chapter 7 bankruptcy, you can protect most, if not all your “exempt” property, and thus getting a fresh start does not have to mean that you start from scratch.
What are “Exemptions”?
Under the United States Bankruptcy Code, exemption laws exist to protect people’s assets and to make sure your “essential stuff” is not taken away from you during and/or after bankruptcy. At Firouzi Law Group, APC., we make sure to examine all your property and properly exempt/protect most, if not all your belongings, and help you get a fresh start.
The bankruptcy court takes a holistic approach when analyzing your application and considers your income, expenses, disposable income, the means test, exemptions, and many other factors.
To successfully qualify for a chapter 7 bankruptcy and maximize your success in obtaining a discharge of your debt, we strongly recommend consulting with an attorney.