Where is Chapter 7 Law?
A San Francisco Bankruptcy Attorney discusses Chapter 7 bankruptcy
What is Chapter 7 law?
Chapter 7 bankruptcy, also known as the “fresh start” bankruptcy, is designed to discharge certain unsecured debts. Chapter 7 law allows for those who make under a certain amount to file bankruptcy. Chapter 7 law is applicable to individuals, partnerships, corporations, or other business entity. Like other areas of the bankruptcy code, chapter 7 law does not allow for the discharge of certain debts (such as some taxes and educational loans). If an individual makes more than the state median income, chapter 7 law provides for a “means test” to determine whether the individual is still able to file.
Where is Chapter 7 law found?
Chapter 7 law is found in chapter 7 of the United States Bankruptcy Code. The Bankruptcy Code is in Title 11 of the U.S. Code.
What is involved with filing under Chapter 7 law?
Briefly, an individual who wants to file under chapter 7 law must first fill out a petition and submit it to the bankruptcy court. The petition much state where the debtor lives, what real and personal property they own, what their income is, what taxes have been paid, mortgage amounts, and other information dealing with the debtor’s financial situation. Once the petition is filed a meeting is held with a bankruptcy trustee. Chapter 7 law states any creditors of the debtor are allowed to appear at the meeting and examine the creditor. Under chapter 7 law the bankruptcy trustee also ensures that the debtor did not engage in any fraudulent activity with the bankruptcy filing. After that meeting, assuming nothing in the petition needs to be amended, the bankruptcy is generally discharged six to eight weeks later.
Does Chapter 7 law set income limits for filing?
Yes. In 2005 the Bankruptcy Code was amended with the intention of limiting the number of abusive filings. One of the amendments dealt with the imposition of income ceilings. Chapter 7 law states that individuals who earn more than the state median amount must satisfy a “means test.” Chapter 7 law has a presumption that if the debtor makes more than the state median and does not pass the “means test” the chapter 7 filing is presumed to be abusive. The median income in CA for an individual is $47,979 (this amount is adjusted periodically). If an individual does not meet the requirements for a chapter 7 filing, the filing will likely be either a chapter 13 or chapter 11.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
