Chapter 7

Irvine, California Chapter 7 Lawyer

Providing Clients a Path Toward Financial Freedom in Orange County

If you’re an individual or business owner in a difficult financial situation with a considerable amount of debt to deal with, undergoing Chapter 7 bankruptcy can free you from the burden caused by most unsecured debts. You may have fallen behind on credit card payments, been hit large medical bills, or your company needs to redistribute money to pay priority debts such as taxes. In any of these cases and more, Chapter 7 can help you diminish or even eliminate your obligation to pay these debts.

Contact us online or call (949) 570-5466 for a free consultation at Financial Relief Law Center. Speak with an Irvine, California Chapter 7 attorney today!

What Is Chapter 7?

Chapter 7 is the most common form of bankruptcy used in the United States. Available to most individuals and businesses in Orange County, Chapter 7 is also often referred to as “liquidation bankruptcy” because nonexempt property and assets in a debtor’s estate are sold off. The proceeds from a bankruptcy sale are then used to pay creditors and satisfy the debtor’s obligation.

While this is what happens in theory, in many cases it’s possible that all property someone owns can be exempted from seizure and sale. This means the debtor can eject unsecured debt without losing household appliances, jewelry, family heirlooms, and whatever else they may value. An experienced Chapter 7 attorney may be able to help you win such a “no-asset” case or help you keep what’s most important to you should your creditors force a seizure and sale of your property.

Related: A General Timetable for Chapter 7 Case Filings

Can All of My Debt Go Away?

Not all of your debt will clear in Chapter 7, but most of it can. If you owe a considerable about of unsecured debt – money owed that’s not secured by collateral – most of it can be discharged during bankruptcy.

Common types of unsecured debt include:

Credit card debt
Personal loans
Medical bills
Utility bills
Back rent
Government benefit overpayments

Secured debt, then, is property secured by collateral such as a vehicle or house. Your creditor can seek repayment by repossessing the property or placing a lien against it if you’re behind on payments. If you are up to date on payments for these things but have little or no equity in them yet, your other creditors cannot seek to claim them as payment.

How Do I Qualify for Chapter 7?

Qualifying for this type of bankruptcy is less about what you owe in overall debt and more about other aspects of your life, such as income, family size, and how much secured debt and arrears are tied to you.

You will first undergo a “means test” to determine whether or not your household’s income is below California’s median income. Documentation going back at least six months is also required and should account for expenses such as your mortgage payments, groceries, clothing, medical costs, and other “allowable” expenses. Other expenses are considered disposable income that could be put toward paying off your debt.

If you pass the means test, you’re cleared to file for Chapter 7 in Orange County. If you fail the means test, you may undergo the process again in six months if you think your situation would change enough to pass.

Contact Us Today! schedule your free consultation

A member of our team will be in touch shortly to confirm your contact details or address questions you may have.

What is the Means Test?

In order to qualify for Chapter 7, you must pass the means test. It was designed to restrict the number of people who could have their debts forgiven. The test calculates whether or not you have enough disposable income to repay your debts while being able to continue living comfortably. This means that there should be enough monthly income to pay off a part of your debt after specific expenses are subtracted. The test takes a look at your income, expenses, and the size of your family.

How Long Does Chapter 7 Bankruptcy Take?

It can take between 4 to 6 months from your initial filing in order to discharge your debt via Chapter 7. At Financial Relief Law Center, APC, our team is prepared to walk you through each step of the process!

As soon as your petition is filed, an "automatic stay" is issued by the bankruptcy court, which will stop creditors from coming after you. This means, no more lawsuits, phone calls, or wage garnishments. If your bankruptcy trustee is satisfied by your filing, then you can be confident that your debt is eligible for discharge. It may take longer if the trustee needs to ask you to submit additional documents or it is necessary for property to be sold to repay the creditors.

Bankruptcy can be an intimidating, but it’s important to recognize that it can also be an important tool to clear the foundation for a better and more stable financial situation. If you need support, reach out to the bankruptcy attorneys at Financial Relief Law Center, APC for help.

Understanding the Chapter 7 Bankruptcy Process

Chapter 7 bankruptcy can provide a fresh start for individuals struggling with overwhelming debt. It allows for the discharge of certain types of debt, giving you the opportunity to regain control of your finances and move forward with a clean slate. Our experienced Irvine bankruptcy attorneys can guide you through the entire Chapter 7 process, from determining your eligibility to completing the necessary paperwork and representing you in court.

Key aspects of the Chapter 7 bankruptcy process include:

Evaluating your eligibility based on income and assets
Filing the necessary paperwork with the bankruptcy court
Attending a meeting of creditors with the trustee assigned to your case
Completing a financial management course as required by law
Receiving a discharge of qualifying debts, typically within a few months

At Financial Relief Law Center, APC, we are dedicated to providing personalized attention and support to our clients throughout the Chapter 7 bankruptcy process. Let us help you take the first step toward financial freedom.

How Our Chapter 7 Attorney Can Help You

We can assist you by:

Comprehensive Case Evaluation: The first step in the bankruptcy process is thoroughly evaluating your financial situation. We will review your income, expenses, assets, and debts to determine if Chapter 7 bankruptcy is your best option. This evaluation helps us identify any possible issues and develop a strategy tailored to your needs.
Qualification Assessment: Not everyone qualifies for Chapter 7 bankruptcy. We will conduct a means test to assess your eligibility. This test compares your income to the median income for a household of your size in California. If your income is below the median, you likely qualify for Chapter 7. If it is above, we will explore other options, such as Chapter 13 bankruptcy.
Preparation and Filing of Bankruptcy Petition: The bankruptcy petition is a critical document that requires accurate and comprehensive information. We will help you gather all necessary documentation, including income statements, tax returns, and a list of assets and liabilities. We will help prepare and file the petition on your behalf, ensuring that it complies with all legal requirements.
Automatic Stay Protection: Once your bankruptcy petition is filed, an automatic stay goes into effect, halting most collection actions against you. This means that creditors must stop calling, lawsuits are paused, and foreclosure proceedings are temporarily halted. We will ensure that your rights are well protected under the automatic stay provisions.
Representation at the 341 Meeting: Approximately 20 to 40 days after filing your petition, you will be instructed to attend a meeting of creditors, also known as the 341 meeting. We will accompany you to this meeting, where the bankruptcy trustee and creditors may ask questions about your financial situation and the information in your petition. We will prepare you thoroughly and represent your interests throughout the process.
Exemption Planning: One of the key benefits of Chapter 7 bankruptcy is the ability to exempt certain assets from liquidation. We will help you maximize your exemptions to protect as many of your assets as possible, such as your home, car, and personal belongings.
Discharge of Debts: Upon successful completion of the Chapter 7 process, most of your unsecured debts will be discharged, providing you a fresh financial start. We will guide you through any post-discharge requirements and help you rebuild your financial life.

Get Help from Financial Relief Law Center, APC

If you’re considering Chapter 7 to free yourself from overwhelming debt, consult with our Irvine, California bankruptcy attorneys for help. We emphasize working with individuals and corporations on a personal level to build a legal strategy that helps you get the most out of your bankruptcy case. You can expect to be treated by our attorneys with compassion through the process as we work together to help you achieve your goals.

For a free consultation, contact us online or call (949) 570-5466 and tell us you’re interested in meeting with our Irvine chapter 7 lawyers to discuss your options in Chapter 7. We serve businesses & individuals in Irvine, California.

Continue Reading Read Less

Hear From Our Happy Clients

At Financial Relief Law Center, APC, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

"I am forever grateful and highly recommend Andrew and the FRLC team!"
I was directed to Andrew Warshaw at the Financial Relief Law Center. He was able to negotiate an agreement outside of court which saved me hundreds of thousands of dollars and prevented me from filing Chapter 11.

- Elijah B.
"Everything that was promised was delivered as such in a prompt and professional manner."
Great customer service backed by solid talent is a combination sometimes tough to find. If you want a solution to your situation from someone who cares and will act promptly to resolve your issues, Andy truly is your guy.

- Stephen B.
"Amanda Billyard provided top-notch service."
They are knowledgeable, thorough, understanding, and humble. Talk about client care...Amanda Billyard stuck with me until she got results.

- Judith T.
"Very grateful. Specialized professionals. Excellent care."
Bankruptcy was a "daunting time" for me... It felt like as shroud of clouds was lingering in the upper regions of my mind. However, that quickly evaporated when Andy Warshaw came into the scene!

- Javier A.
"The people at Financial Relief Law Center are truly the best and I am so grateful."
Andy was very helpful and professional in guiding me to Amanda who sat with me and really offered the most genuine perspective on how to handle things.

- Adam G.
"My attorney Amanda and Victor are simply The BEST!!!"
My case was handled in a professional manner, no judgment, and they were so FAST!!!

- Virginia J.

View All Reviews

What Sets Us Apart?

As attorneys who routinely support consumers in potentially dire financial straits, we are empathetic and compassionate about what these problems mean to our clients. More importantly, we’ve grown to understand how important it is that we only deliver our best possible work so our clients’ chances of getting the best possible outcome are secured.

30+ Years of Combined Legal Experience
Our team of attorneys has extensive knowledge of bankruptcy and estate planning law, with over three decades of combined experience between them.
Solutions Fit for Your Unique Case
No two individuals, or their cases, are ever identical. We seek to provide viable solutions that your unique case deserves.
Constant Client Communication
You won't be out of the loop! We make sure all of our clients are up-to-date with the status of their case.
Free Consultations
Why pay to have a conversation? Our phone, video and in-person consultations are 100% complimentary.