There is a lot of misinformation out there about who is eligible to file Chapter 7 bankruptcy. Credit card companies and even some inexperienced bankruptcy lawyers may tell you that you do not qualify. The truth is that most people with serious debt problems are eligible.
At the Orantes Law Firm, P.C., in Los Angeles, attorney Giovanni Orantes is dedicated to helping individuals throughout Southern California obtain debt relief by filing Chapter 7 bankruptcy. We offer a free initial consultation to determine if you are eligible.
The Chapter 7 Means Test
If your average monthly income over the past six months is below the California adjusted median income, then you are automatically eligible to file Chapter 7 bankruptcy. In 2011, the California median income was $48,009 for a single wage earner, $62,970 for a family of two, $68,670 for a family of three and $78,869 for a family of four.
If your income is above the California median income, we can perform a secondary means test that considers your disposable income. This secondary means test allows you to deduct certain expenses such as mortgage payments, car payments and retirement plan contributions from your income. In some cases, simple changes such as contributing more to your 401(k) or IRA account can make you eligible to file Chapter 7 bankruptcy. Only an experienced bankruptcy attorney can give you proper guidance in how to become eligible under the secondary means test.
To be eligible to file Chapter 7 bankruptcy, you must not have filed bankruptcy within the past eight years. If you are not eligible to file Chapter 7 bankruptcy, you may still be able to obtain debt relief by filing Chapter 13 bankruptcy.
For More Information About Chapter 7 Bankruptcy Eligibility
To find out if you are eligible to file Chapter 7 bankruptcy, call 213-640-2619 or contact us by e-mail to schedule a free attorney consultation and learn more. Se habla español.
