Fresno Bankruptcy Attorney - Understanding Chapter 7 Bankruptcy

In years past, people could choose the type of bankruptcy they wanted to file, whether it was Chapter 7 or Chapter 13. However, new laws put into place have made it so that in order to file for Chapter 7 bankruptcy protection, certain qualifications must be met. While not everyone can qualify for Chapter 7 bankruptcy under the new laws, those that do not qualify may still be able to file for Chapter 13 bankruptcy protection. The qualifications necessary to file for Chapter 7 bankruptcy are known collectively as the "means test" and the test itself is made up of two parts:

Part 1: Income Level - your income will be measured against the median income for your state, which in the case of a Fresno County Bankruptcy filing would be California. If your income is less than the average person residing in the state of California, then you may qualify for a Chapter 7 bankruptcy.

Part 2: Disposable Income - your disposable income is calculated by a set formula that offsets your actual income with what the law deems necessary expenses. If you do not have any disposable income, you will pass this portion of the means test. If you do have disposable income, and that income is insufficient to pay off at least 25% of your non-priority, unsecured debt, then you can still pass this portion of the means test.

You must pass both parts of the means test in order to qualify for a Chapter 7 bankruptcy. For these reasons, Chapter 7 bankruptcy filings are best suited to individuals who have a high amount of unsecured debt -such as credit card debt - with a relatively low income level. Because Chapter 7 bankruptcy cannot discharge many forms of secured, priority debts such as student loans and tax debt, it's important to be certain that you will actually benefit from the bankruptcy filing.

Before you begin filing for Chapter 7 bankruptcy in Fresno County, it's important that you have all the information necessary to make the right decision about your particular circumstances. Talk to us today - we'll give you a free, no-risk, initial case evaluation that will help you to determine whether or not Chapter 7 bankruptcy is the best fit for your financial needs. We have expert attorneys who specialize in Fresno County Bankruptcy Law, and we understand the concerns that many individuals have when filing for bankruptcy. By contacting us first, you are taking a positive step towards financial freedom and a fresh start down the road to financial stability.

Don't delay - the sooner you contact us, the more options we may be able to provide. And the sooner you file for bankruptcy, the sooner you can be free of harassment from creditors, and get started on the path to financial independence.