Due to unforeseen events or simple mistakes, people can amass a large amount of debt that they are unable to repay. Bankruptcy is a legal remedy that may allow them to restructure or discharge their obligations. At the Law Office of Ronald L. Freeman in San Bernardino, I provide advice and representation to help residents of Southern California get out from under crushing debt and set off on a firmer financial footing.
An individual seeking bankruptcy relief may be eligible to pursue a Chapter 7 (liquidation) or a Chapter 13 (wage earner’s plan). I will carefully examine your situation with the goal of deciding which form of bankruptcy is right for you.
A Chapter 7 liquidation, the most common type of bankruptcy, can eliminate many of your debts. Key aspects of this form of relief are:
This type of bankruptcy can provide you significant financial relief, but there are restrictions and limitations on its use. I will thoroughly examine your finances to determine your eligibility.
To qualify for chapter 7, you must show that your income is less than the median income for a household of your size in your state. If you have disposable income greater than your allowable monthly expenses, it must be devoted to paying off some of your debts. If your disposable income exceeds a certain level, you will not meet the means test. I will analyze your finances and any relevant circumstances to determine your eligibility.
If you do not qualify for Chapter 7, you may be able to pursue a Chapter 13, which reorganizes your debts instead of discharging them. To qualify, you must be able to prove that you have sufficient income to repay your debts within three to five years. You propose a repayment plan that is subject to the court’s approval. Among the benefits available under Chapter 13 is the ability to reclassify some debts from secured to unsecured and to restructure certain payments such as taxes and student loans. Chapter 13 can also be a defense to mortgage foreclosure.
The Law Office of Ronald L. Freeman provides clients representation for bankruptcy matters throughout Southern California. Please call 909-347-7389 or contact me online to schedule a free initial consultation at my San Bernardino or Riverside office.