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 removed. 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? If your household income is below the California median, we typically can qualify you for a Chapter 7 bankruptcy. If your household income is more than the California median, than we must calculate your income and expenses in 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 thirty 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 twelve weeks after the court appearance you receive the order of discharge of your debts by mail.

The court costs to file a Chapter 7 case are $299 which must be paid by you when the case is filed. 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 attorney, that not all attorneys have the requisite knowledge and experience in handling these cases. The Law Offices of Joseph M. Tosti has been committed to representing those consumers and businesses that have been suffering from severe financial hardship for over a quarter of a century..

Contact us today about your particular financial circumstances.