Are you drowning in debt? Sometimes you may surrender to situations beyond your control, which may leave you financially deprived. Perhaps an illness or a retrenchment at work has led to the depletion of your savings. You have been relying on credit cards for a while now, unable to meet the payments and creditors won’t let you breathe.
The thought of your car being repossessed or your house being foreclosed is enough to keep you awake all night. However, do not cave into the fear. As a resident of Chula Vista, we can help you reduce or eliminate your debt. We are the Chula Vista bankruptcy attorneys, and we are your best bet for a brand new financial start.
Before you can figure out how to deal with your debts, you need peace of mind to recollect your thoughts and weigh your options. However, garnishment of wages, collection letters, harassing phone calls, creditor lawsuits and home foreclosures only cause more harm. When you file for bankruptcy with the bankruptcy attorneys Chula Vista, you will receive immediate protection against all the above. This security falls under what we call the ‘automatic stay.’
Chapter 7 Bankruptcy
Chapter 7 of the bankruptcy code allows the sale of all your nonexempt property as a debtor and the allocation of the proceeds to your creditors. However, to file for this type of bankruptcy, a particular criterion has to be met. Generally, you should be a debtor without the ability to pay your existing debt.
If the majority of your debt is unsecured, it is high time you visit the Chula Vista bankruptcy attorneys to protect some of your assets. When you file for a Straight Bankruptcy, you will be rid of unsecured debt such as medical bills, credit cards, personal loans, and dental bills. The moment you file for bankruptcy, you should cease to make any payments towards on your unsecured debt.
Regarding secured debt such as mortgages, car loans, you must continue making the necessary payments if you wish to keep them. Other debts that may not be eliminated by Chapter 7 include past due taxes, student loans, and alimony.
Chapter 7 Bankruptcy Eligibility
As aforementioned, you have to meet several criteria before you are considered eligible for Chapter 7 bankruptcy. First, you have to pass the ‘means test.’ Just to give you a rough idea, here are some things that can deny you eligibility for Chapter 7 bankruptcy.
If your income is enough to repay your debt
Before 2005, if a judge felt that your disposable income should be able to meet your debt, they would dismiss your bankruptcy plea. However, today, even if you make enough, you can still be exempted via a ‘means test.’ Veterans who accrued debts as a result of an injury on active duty and people who incur debt from running a business get a guaranteed pass to Chapter 7 bankruptcy.
Defrauding your creditors
When the court has reason to believe that you may be lying to your creditors or concealing your assets it can quickly dismiss your bankruptcy plea.
Do not sink into this quagmire alone. Approach your bankruptcy attorneys at Chula Vista and let us use our wealth of knowledge and resources to give you a clean slate.