Chapter 7 Bankruptcy Basics

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Filing Bankruptcy is a Right provided by Congress for individuals and couples who are overwhelmed with debt (i.e., insolvent) to obtain a fresh financial start. As long as you quailify and follow the law and procedures correctly, it is your RIGHT to obtain a discharge of eligible debts. I will help you do that, but first we must determine if you qualify to file.

Congress has set standards to determine if you qualify for Chapter 7 based upon your income and family size. If you make less than the amounts listed in this chart for your family size, you presumptively qualify for Chapter 7 relief. 

If your income is a little above that amount, you may still qualify depending on your circumstances. You have to qualify under the “Means Test.” I will help you determine that if necessary. If you do, Chapter 7 is still available to you. 

If you do not qualify for a Chapter 7, you may still be eligible to file personal Bankruptcy under Chapter 13 (or Chapter 11 for businesses). I currently only provide Chapter 7 personal bankruptcy services, so please consult another attorney if that is your situation.

One further qualification to file is that you cannot have filed for a Chapter 7 bankruptcy within the previous eight years or Chapter 13 bankruptcy within the previous six years.

A so-called "no assets" case is simply a case where there are no assets left that are over the value of claimed exemptions for the Bankruptcy Trustee to seize and sell for the satisfaction of creditors. 

The reality is that most people who file a Chapter 7 keep all of their stuff! 

You will keep all of your belongings that fall under the legal exemptions that are allowed under California and Federal law. These are substantial but Petitioners must be careful to choose the correct exemptions for their particular circumstances. I will help you make the best legal determinations to cover your exempt assets.

Be aware that there are certain types of debt that are NOT dischargeable in Bankruptcy, most importantly including student loans, most taxes, and certain types of damages awards. I'll help you sort that out, if necessary.

Filing  a Chapter 7 Bankruptcy Petition will immediately impact your credit by dropping your FICO score by anywhere from 100 points to well over 200 points, instantly. The filing will remain on your credit reports for 10 years.

The good news here is that there are ways to increase your credit after filing Bankruptcy and obtain good credit again. I did. It takes a few years, but with attention and effort, nothing is off limits for your future financial health. And you'll do it with a Fresh Start!

First, KEEP PAYING for any secured debt that you intend to keep, such as your car but especially your mortgage (if applicable) as those debts may be reaffirmed and you must be current to do so. Similarly, keep a roof over your head and stay current with rent, if possible. 

Then, CALL ME! After our initial phone consultation, I will send you my Flat Fee Agreement. Once returned and fee payment is arranged, I will send you a detailed questionnaire to prepare your Bankruptcy Petition. This is only the start of the paperwork package that will be needed from you. You will also need to provide me:

1. 2 years’ prior Federal income tax returns
2. Certificate of completion of approved pre-filing credit counseling course (free course listed here)
3. Photocopy of ID
4. Last 7 months’ pay stubs (if relevant)
5. Proof of additional income from social security, disability, unemployment, etc.
6. Copies of any lawsuits
7. Copies of registrations for all vehicles which are in your name
8. Last 6 months bank statements
9. Current credit report (within last 30 days, free here)
10. Any and all other information about other creditors

It's a paperwork intensive process that requires accuracy. I'll get it done right for you. After the Petition is drafted by me, we will review it for  completeness and accuracy before filing. About a week after filing, all of your creditors will receive Notice of your filing and then ALL COLLECTION ACTIVITIES WILL STOP!! 

I offer a flat fee of $1,000.00 for simple “No Asset” Chapter 7 personal Bankruptcy services including planning, preparation and filing the Petition through the meeting of creditors. My fee does not include the court's filing fee of $338. 

I'm willing to work with clients to make installment payments on my fee, but it must be paid in full before I'll file the Petition. If your case is complex, we will negotiate a flat fee according to the circumstances.

My regular hourly rate for legal work is $250 per hour.

I accept payments via Venmo, Zelle, money order or cashier's check.

If you hire me, I will move as fast as you do to get your case filed and stop the collectors.  If you qualify, provide ALL of the required documents and appear at your "Meeting of Creditors" and testify truthfully, your chances of receiving a full discharge are almost guaranteed.

I WILL return calls and work with clients on weekends and evenings as necessary, too!

With me, there is the added convenience of handling the entire case from HOME! As a virtual law firm, all my businuss is conducted via the phone and Internet. Better still, the Central District of California Bankruptcy Court does all of their Meetings of Creditors via video or telephone conference call, so you can handle your entire case from anywhere!  

I've been an attorney for almost 30 years, starting first in Oregon in 1995, later being admitted to California in 2001. While I've had a diverse career, my current focus is only on Chapter 7 “No Asset” personal bankruptcies (individuals or married couples). I do not do litigation, family law, or criminal law work - my focus is directed on this one area of practice.

Credit counseling is required both before and after the bankruptcy Petition is filed. Pre-filing debt counseling can be obtained online and for free from this list. 

Post-filing debtor education course is required before you can obtain your debt discharge. I highly recommend completing it immediately following the filing of the Petition so it's not forgotten. You can find the free post-Petition free online debtor education courses found here.