How do I know if I’m eligible for Chapter 7 Bankruptcy?

To be eligible for Chapter 7 bankruptcy in California, you must be an individual or married couple and your debts must not exceed certain limits. You must also pass the “means test.” This test looks at your income and expenses over the last six months to determine if you have enough disposable income to pay off some of your debts. If your disposable income is above the median income for a household of your size, you may not be eligible for Chapter 7 bankruptcy. Additionally, you must complete a credit counseling course within 180 days before filing for Chapter 7 bankruptcy. If you are eligible for Chapter 7 bankruptcy, you can file a petition with the Bankruptcy Court. This petition will list your debts, all of your assets, and any ongoing monthly expenses. Once the petition is filed, the Bankruptcy Court will issue an automatic stay, which stops your creditors from collecting on your debts, including foreclosures, repossessions, and phone calls. The Court will also appoint a trustee to oversee your case. The trustee will review your financial records and liquidate (sell) any non-exempt assets to pay off your debts. Once your debts have been paid, your case will be discharged and you will no longer be legally obligated to pay any of the debts listed in the petition. Therefore, to determine if you are eligible for Chapter 7 bankruptcy in California, you must meet certain conditions, pass the means test, and complete a credit counseling course. After filing a petition with the Bankruptcy Court, the Court will appoint a trustee to oversee your case and liquidate any non-exempt assets to pay off your debts. Once your debts have been paid, your case will be discharged.

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How do I know if I’m eligible for Chapter 7 Bankruptcy?

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