Eligibility for Individuals filing for Chapter 7 Bankruptcy
Chapter 7 bankruptcy is aimed at individuals of limited financial resources. Eligibility for Chapter 7 is determined by balancing a debtor’s income against his or her expenses. Therefore, a debtor can actually earn significant monthly income and still be eligible if his or her expenses are at a high enough level. It is important to consult an experienced bankruptcy attorney, such as the attorneys of Vokshori Law Group to assess one’s eligibility for relief under Chapter 7.
How Chapter 7 Works
When debt is discharged through Chapter 7 bankruptcy, a debtor is no longer personally liable for any discharged debt, and creditors are barred from attempting to collect the amount owed. It usually takes around 4 months for debt to be discharged following the filing of a Chapter 7 petition.
While not all debts are dischargeable via Chapter 7 bankruptcy, the majority can ordinarily be eliminated. In addition, only debts accrued before the filing of Chapter 7 are eligible, so any new debts incurred by the filer following the initiation of the Chapter 7 process must still be paid by the debtor.
Dischargeable Chapter 7 Debts
Debts that are commonly discharged under Chapter 7 include:
- Certain types of civil judgments
- Certain types of attorney fees
- Medical bills
- Payday loans
- Collection agency outstanding accounts
- Utility bills
- Certain types of auto accident claims
- Business-related debts
- Lease-related debts
If you are dealing with mounting debts, possible foreclosure or other financial legal issues, please contact our highly experienced and reputable Los Angeles bankruptcy attorneys at Vokshori Law Group (855) 855-2608 for a free consultation or visit www.Voklaw.com for further information. We will keep you apprised of your rights while ensuring the best possible outcome.