Is Chapter 7 Bankruptcy Right For You?

In a Chapter 7 bankruptcy the court will discharge most types of debt including credit card balances, medical bills and finance company loans. Some types of debts like recent income taxes, student loans and child support obligations are not dischargeable. On secured debts, like a home mortgage or car loan, you have the option to keep the property and keep making the payments, or surrender the property to the lender and discharge your liability. You generally are able to keep all of your property, unless you have substantial equity in the property beyond what California law allows you to protect.

Do You Qualify For Chapter 7?

If your household income is below the California median income, we typically can qualify you for a Chapter 7 bankruptcy. If your household income is more than the California median income, than we must calculate your income and expenses under the "Means Test" to determine if you qualify for a Chapter 7. In your free consultation, either in person or on the telephone, we will be able to advise you if you qualify for a Chapter 7 bankruptcy.

Once the Chapter 7 petition is filed, the United States Bankruptcy Law prohibits all collection attempts by your creditors including telephone calls. Approximately 30 days after your case is filed there will be a Creditors Hearing. Typically no creditors actually show up at the Creditors Hearing. Usually it is just the bankruptcy Trustee that is present to ask you questions about your assets and income. In most cases, the hearing will last less than five minutes with a court appointed trustee. It is the trustee's responsibility to see if you have any large assets that could be liquidated to pay your debts, like business equipment or substantial equity in real estate. About 12 weeks after the court appearance you receive the order of discharge of your debts by mail.

On the date your bankruptcy petition is filed, the court will charge a filing fee of $335. The attorney fees for Chapter 7 cases depend on the nature and complexity of your case, finances and assets. In most cases, we can have the fees paid in installments. During your free consultation we will be able to quote you an exact fee and discuss a payment plan.

It is important to remember when choosing a bankruptcy lawyer that not all attorneys have the requisite knowledge and experience in handling these cases. For over a quarter of a century, The Law Offices of Joseph M. Tosti has been committed to representing those consumers and businesses in Irvine and Orange County that have been suffering from severe financial hardship. Call 949-864-6276 to schedule your consultation and discuss your options.

We are a debt relief agency pursuant to Federal Law S524 of Title 11 of the US Code. The Law Offices of Joseph M. Tosti provides assistance and helps people file for bankruptcy relief under the United States Bankruptcy Code.