Los Angeles Chapter 7 Eligibility Requirements
How Do I Qualify For Chapter 7 Bankruptcy?
For questions about Chapter 7 eligibility requirements, contact the bankruptcy attorneys of Weintraub & Selth, APC. Our two lead attorneys have more than 65 years of combined experience in this area of the law and are prepared for even the most challenging bankruptcy cases. We have helped many people who were told by other bankruptcy lawyers they did not qualify for Chapter 7 bankruptcy. We have extensive experience helping clients become eligible to file for Chapter 7. We may be able to help you.
When you meet with our bankruptcy attorneys, we will collect essential documents and information from you and listen to the details of your circumstances. Because we have been practicing in this area of the law for so long we will be able to determine if you are eligible for Chapter 7 bankruptcy or if alternatives should be explored.
Chapter 7 Eligibility And The Means Test
The means test requests the bankruptcy court to determine your eligibility for Chapter 7 if your debts are primarily consumer debts. The means test formula involves:
- Adding six months of your historical gross income and then dividing it by six and then multiplying the answer by 12. The result will be considered your median income.
- Your median income will then be compared to the California median income for a household of your size.
- People with a median income below the California median income for a household of their size may file Chapter 7. However, even people with a median income higher than the median can file Chapter 7 in certain circumstances.
We can administer the means test to determine your eligibility for Chapter 7 bankruptcy. If you do not initially qualify, we may be able to offer suggestions for how you might change your situation in order that you will qualify for Chapter 7 relief. Each case is unique, however. Speaking with an experienced bankruptcy attorney before making any decisions is absolutely essential.
Chapter 7 may be attractive if you are seeking to liquidate certain assets to repay debt rather than reorganize your debt as in Chapter 13. All forms of bankruptcy have benefits and drawbacks. Contact us to discuss the type of bankruptcy that suits your challenges and if you are eligible for Chapter 7 bankruptcy. We will offer a straightforward analysis of your case and provide practical advice that may help you protect certain assets and put an end to your financial challenges over the long term.