Bankruptcy

 

Serving the greater Fresno Area

 

Local Attorneys-

Serving Local Clients

 

   

 

 

   Chapter 7

  A Chapter 7 bankruptcy (also known as a “straight bankruptcy”) filing will generally result in the discharge of most types of debts including credit card balances, mortgage and automobile deficiencies, personal loans, most civil judgments, collection accounts, and medical bills. There are, however, certain debts that will not be discharged which include student loans, domestic support obligations, fines/penalties arising from a crime or malicious conduct, and debt procured by fraud. Furthermore, a person filing bankruptcy ("debtor") may not receive a Chapter 7 discharge if he or she has received a previous discharge under Chapter 7 in the previous eight years.Both small businesses and debtors may file Chapter 7 bankruptcy. A debtor with primarily consumer debts is eligible to receive a Chapter 7 discharge if he or she passes the Means Test. To pass the Means Test, and debtor’s average monthly income for the past six months must be less than the California Median or if his or her income is above the California Median and his or her qualified deductions place his or her income beneath the disposable income threshold. In addition, even when a debtor does not pass the Means Test, there may be special circumstances that may be taken into consideration to qualify for a Chapter 7 bankruptcy.

When the debt incurred is primarily business debt, a Chapter 7 business bankruptcy filing may be the best option. If the debt is over 50% business debt, then the Means Test will not apply. 

Meeting of Creditors
After approximately 4-5 weeks after the petition is filed, a 341 (a) Meeting of Creditors will be held. At the meeting, the trustee will ask the debtor questions about the debtor’s financial affairs and accuracy of the petition. Creditors have the right to be present and ask questions regarding assets and liabilities, however, it is rare when creditors do appear at the meetings. Once the meeting begins, the meeting usually lasts no more than five minutes. Once the meeting is concluded, if there are no objections, the debtor will receive his or her discharge approximately 60 days after the 341(a) meeting.

Cost
The court filing fee for a Chapter 7 case is $299, which must be paid by the debtor when the case is filed. The attorney’s fees we will charge for a Chapter 7 petition varies on a case-by-case basis. Our fees, however, are reasonable. Additionally, we offer payment plans.

 

 

Call Adiuvo Law Group at (559) 439-2991 for your FREE case consultation!