Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is also known as a liquidation bankruptcy. The purpose of filing is to get out of all of the debt that you are able, and at the same time keep all of your property. Chapter 7 allows you to get out of all of your debt except generally for recent income tax or sales tax debt. Chapter 7 does not allow you to get out of mortgages or car loans. Your home and car can be kept as long as you keep paying those creditors.

Individuals have to Qualify for Chapter 7

In order to qualify for a Chapter 7 you have to pass the Means Test. The means test was added to the bankruptcy code in 2005 for the purpose of making it harder for consumer debtors to file bankruptcy. If you are a business debtor, which means you owe more business debt than personal debt, you do not have to take the Means Test. Our firm guides you through the Means Test. We help you assert all of your rights, so that you have the best chance of passing the means test. If you do not pass the Means Test, you can always file under Chapter 13 and we can also help you with that.

Our firm offers you a free in office, or phone consultation to determine whether you qualify for a Chapter 7. Call (925) 946-1400 to set up a free consultation.