Compassionate and personalized attention from attorneys who listen to you and offer individualized attention
Whether you are an individual or a creditor, facing a Chapter 7 bankruptcy action often causes confusion and uncertainty about your legal options. Also known as liquidation bankruptcy, Chapter 7 actions allow debtors to wipe their financial slates clean and pursue a fresh financial start. While this can certainly benefit people who can no longer manage their debt, it nonetheless causes creditors to face serious financial consequences when people default on their loan obligations. Whether you are an individual or a creditor, it is a good idea to consult with an attorney who has the experience necessary to handle your case and explain the common bankruptcy myths. The Hemb Law Group in Fresno provides effective representation for both creditors and debtors facing Chapter 7 bankruptcy proceedings.
An overview of Chapter 7 bankruptcy
Not everyone qualifies for Chapter 7 bankruptcy. To be eligible to file under Chapter 7, you must pass a means test that weighs your income against your debts to determine if you have enough disposable income after paying your monthly expenses to satisfy some or all of your debts. If you do not meet the criteria under this test – in other words, if you do have significant disposable income — there are alternatives, such as Chapter 13 bankruptcy, that can help you manage your debt.
What you need to file for Chapter 7 bankruptcy
In order to complete the filing process under Chapter 7, you must file a petition for bankruptcy and provide the following additional information:
- A list of all your creditors, indicating the type (mortgage, car loan, credit card, etc.) and how much is owed
- The source of your income, the amount and the frequency of payment
- A list of your properties
- Your monthly living expenses
Debtor and creditor rights and obligations
After a Chapter 7 bankruptcy is filed, a bankruptcy trustee is assigned to review the debtor’s case and conduct an investigation. It is important for both debtors and creditors to be aware of the requirements that take effect after the action is filed, including the following:
- Creditors are no longer allowed to contact debtors for debt collection purposes
- An individual’s creditors must receive notice of a debtor’s bankruptcy proceeding
- Credit counseling obtained and filed with the court
Contact us today to find out your bankruptcy options
Whether you are a debtor or creditor facing a Chapter 7 bankruptcy action, it is important to understand that you have rights. Call us at 559-241-7050 to schedule a consultation at our office in Clovis. We are conveniently located in downtown clovis one street over from pollasky. We are available weekdays from 8:00 a.m. to 5:00 p.m.