Are bill collectors constantly sending you nasty letters or harassing you with phone calls? If you are unable to pay your debts, filing for bankruptcy can help relieve your financial burdens. You can rely on attorney Ike Shulman at Shulman Law Offices in San Jose, CA to help you file for Chapter 7 bankruptcy protection if that is your best option.
Ike understands that you may be worried about losing your home, car, or other personal assets when filing for Chapter 7 relief. You can count on Ike to work with you to protect your property in your case. He will be there for you from the start and throughout the entire bankruptcy process.
Chapter 7 bankruptcy can wipe out many types of outstanding debts. However, it cannot discharge some types of debt, such as child support, government fines, student loans, and certain taxes. Other debts may be secured by collateral, such as a car or home, which means that you may still need to pay those creditors to keep your property.
The first benefit that you will get is the automatic stay, a court order that stops creditors from trying to collect what you owe them. This comes into effect immediately after you file for bankruptcy.
The process for Chapter 7 bankruptcy takes approximately three months from start to finish. As soon as the case is completed, you will no longer be responsible for paying dischargeable debts.
You can file a Chapter 7 bankruptcy petition as long as you live in the U.S. If you have filed for Chapter 7 bankruptcy before, you will have to wait for eight years before you can file again and receive a discharge of your debts.
Income Test – There is an income test, or "means test," which is used under the bankruptcy law to determine if an individual is eligible for Chapter 7. This test first reviews your monthly income. If it is lower than the median income of a similar-sized household in your state, then you are normally eligible to file for Chapter 7. But if your monthly income is higher than that, then your allowed living expenses are reviewed to determine if there is any money left over to pay your debts. If little or no money is left, then you still may be eligible to file for Chapter 7.