Chapter 7 Attorney Fees vary, call for your free appointment to find out more. Court filing Fees are $306.00.
Chapter 7 Bankruptcy is a liquidation of assets. Your assets that are NOT exempt are liquidated. In California there are very generous exemptions that allow some debtors to keep $100,000.00 in home equity. There is a Means Test which is used to determine if a debtor is eligible to file a Chapter 7 Bankruptcy. The Means Test is a two step test. The first Test is a comparison of the Debtor”s Gross (before and deductions) wages or earnings, and the applicable Median Income for the family size and county in which the debtor lives. Being above the Median Income is not the end to the possibility of filing a Chapter 7 Bankruptcy. The Second Stage of the Means Test goes on to compare the Debtors income after certain deductions, including Taxes, Mandatory Employer Deductions (like retirement), Health Benefits, Term Life Insurance and allowances for Secured Debt Payment, Taxes, Child Care, certain Education Expenses and other things like transportation. The Test is complex and therefore competent legal council may be necessary to complete the test.
If you qualify to file Chapter 7, you do not have to lose your home or your cars. You do need to be sure you properly exempt your Assets in order to keep them. Also if your home has a mortgage or your car has a loan against it you are not forced to give it up. There are options to keep these types of property. Ask your attorney at your Free Appointment to explain this to you.
The entire Chapter 7 Bankruptcy process takes about 5 months. Most debtors cases are closed within that time. If your case is an asset case, there are steps that must be taken to ensure your assets are protected for an increase in value over the time that your case is open.