An Attorney Helping You Find Financial Freedom Through Chapter 7 Bankruptcy

There are several reasons you may choose to file Chapter 7 bankruptcy to wipe away your debts, and the Law Offices of Danny K. Agai can help you navigate the process. Mr. Agai has more than a decade of professional experience helping clients clear their debts. He and his team are genuinely passionate about helping clients out of difficult situations, and they can help you find the relief you’re looking for and build strong financial practices for your future.

Qualifying For Chapter 7 Under The Means Test

Individuals or business entities who pass the “means test” may file Chapter 7. The means test determines whether the petitioner’s income is low enough for them to file by examining their disposable income, calculated from a person’s current monthly income (average income over the last six months prior to filing) with monthly expenses deducted. If their disposable income is less than or equal to California’s median income for a family of the petitioner’s size, they may file Chapter 7. In certain situations, if they have a higher income, it is possible to qualify for Chapter 7 if they have many expenses to pay off, such as high mortgages, car loans, and taxes, and do not have enough income left over to complete a Chapter 13 repayment plan.

The Procedural Basics Of Filing Chapter 7

A Chapter 7 case begins when the debtor files a petition with the bankruptcy court. The petition and other forms filed with the court should include:

• Schedules of assets and liabilities
• A schedule of current income and expenditures
• Property they claim is exempt under bankruptcy law (motor vehicles, pensions, reasonably necessary clothing and furniture)
• Property they owned and money spent during the previous two years
• Property sold or given away during the previous two years

Individual debtors with primarily consumer debts should also file a certificate of credit counseling, evidence of payment from employers, if any, received 60 days before filing, a statement of monthly net income and a record of any interest the debtor has in federal or state qualified education accounts.

Once the petition has been filed, an “automatic stay” will take effect that stops nearly all debt collection actions and communications from creditors.

Note that Chapter 7 involves the liquidation of nonexempt property to pay off the petitioner’s debts. By filing Chapter 7, they place their property and debts into the hands of the bankruptcy court, and a court-appointed trustee will handle the liquidation process and use the proceeds to pay back creditors as much as possible. The bankruptcy trustee will also run the 341 creditors meeting, where the petitioner should appear for a brief questioning.

At the conclusion of the bankruptcy process, all your debts will be discharged (wiped out), except for:

• Debts that automatically survive bankruptcy (child support, most tax debts, student loans) unless the court rules otherwise
• Debts that the court has declared non-dischargeable because the creditor objected (debts incurred by fraud or malicious acts)

This process may seem daunting, but attorney Agai can guide you assuredly through your filings, meetings, and other communications.

Is Chapter 7 Right For You? Discuss Your Options In A Free Consultation.

If you are in a tight financial crunch and want to discharge your debts as soon as possible, Chapter 7 might be the bankruptcy option for you. The Law Offices of Danny K. Agai can provide the legal assistance you need to resolve your matter swiftly and confidently. Schedule a free consultation online or call 818-867-3697 to discuss your legal strategy with a lawyer who listens and cares.

The firm is based in Valley Village and serves clients throughout the Los Angeles area. Se habla español.

This firm is a debt relief agency. Attorney Danny Agai helps people file for relief under the Bankruptcy Code.