In the following article you may find out the activities you need to complete while filing for Bankruptcy under Chapter 7 in order to discharge your debts in California:
1. Analyze your debt.
There are not dischargeable debts in Chapter 7, such as child support obligations.
2. Determine your property exemptions.
There are different exclusion laws which state on the types of properties and sometimes even the amount of equity possible to retain while filing for Bankruptcy under Chapter 7.
3. Make sure you are eligible.
In case you have more average income than the medium income for a family with similar size in your region over the last 6 month of filling the forms, you may not be eligible to use the Bankruptcy under Chapter 7.
4. Redeem or reaffirm secured debts.
In case you have collateral for an agreement, a certain amount need to be paid to the creditor if you want to keep your rights on the property. While filling the forms you can decide from the three possible options of dealing with collateral. Those are:
– redeem – pay a replacement,
– reaffirm – decide on new contract conditions and terms,
– surrender – give the property to the creditor.
5. Fill out the bankruptcy forms.
The forms you need to fill in include information about your property, debts, income, and expenses as well as the names of the creditors, specifying the disputed debts, decide on the claiming property and the actions concerning your secured debts.
6. File the forms.
Your case starts when you fill in the bankruptcy form. It is possible to fill only 2 page long form in the beginning in case of an emergency and the full for within further 14 days.
7. Go to a meeting.
Usually you are requested to show up in the court once in order to answer necessary questions and provide appropriate information to the trustee and/ or creditor(s).
8. File objections or motions if needed.
In case you wish to open a dispute on your creditors’ statements or remove some parts you need to report on these issues before the case is terminated.
9. Wind up your secured debts.
While filling the appropriate forms for bankruptcy you also mention the ways of fulfilling your secured debts which need to be worked on before your case is completed.
10. Get your discharge.
Congratulations! This is what it’s all about.
When the bankruptcy is officially announced the court issues a statement confirming that your dischargeable debts are discharged which means that you are not obligated to pay it or be demanded by the creditor.
Do not delay too long to get help in your Bankruptcy Case. If you filed bankruptcy and you need to eliminate your tax debts, there are many exceptions which are able to extend the above rules. So you should analyze the transcripts with a professional attorney experienced in discharge issues.
At The Margarian Law Firm, you can get a free initial consultation in order to examine your specific circumstances. We will help you to determine for which type of bankruptcy you qualify. Additionally, you will receive information concerning your assets which will be affected by your decision.
You may file your request online, by telephone or by mail. 818-553-1000