Known extensively as “liquidation” or “straight bankruptcy“, Chapter 7 bankruptcy filers have protection from their creditors and relief from most of the financial obligations that have burdened them. Chapter 7 Bankruptcy will definitely permits you to clear a great deal of your outstanding debts immediately and obtain a new beginning in your monetary life. With Chapter 7 bankruptcy you can Reset your financial life and start over.
After bankruptcy, you can recover good credit in about two years. Filing for bankruptcy does not mean 7 to 10 years of bad credit – that is a myth. Credit card companies usually offer you new credit cards right after the bankruptcy is over. Qualifying for a mortgage will take about three years after bankruptcy.
The most often asked question is how does one qualify for Chapter 7 bankruptcy? Essentially, you need to have three things: moderate to low income, a significant amount of debt, and no substantial property.
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To obtain approval for a Chapter 7 bankruptcy you should earn less than the median earnings for people in your location. If your earnings are above the regular median income level for your location, you may still be qualified for Chapter 7 bankruptcy subject to an income “means test”. An experienced California Bankruptcy Attorney in Ontario California can greatly improve your chances of obtaining approval from the bankruptcy courts.
With Chapter 7 bankruptcy, you will have the capacity to keep each of your exempted assets. Generally exempted assets include pensions, 401ks and Individual Retirement Accounts. Commonly exempted assets include home equity, autos, and bank accounts. Talk to an Ontario Bankruptcy Lawyer at Hedtke Law Group to determine which properties are secured under California bankruptcy.
Some financial obligations are not qualified for discharge in bankruptcy. Child support debts, student loans and recent tax debts are not dischargeable in bankruptcy. Call us today at +1 909-457-0163