| Eligible Requirements to File Bankruptcy |
Eligible Requirements to File BankruptcyIf you want to know more about eligible requirements to file bankruptcy, this article may help you! When individuals or businesses are facing a severe financial crisis they may consider filing for bankruptcy as a way to clear or more easily manage their debt. In the past, bankruptcy was utilized by many to gain a fresh financial start. Chapter 7 and Chapter 13 were the two bankruptcy chapters under which most individuals or businesses filed. In 2005, new laws were enacted that made it more difficult for individuals and businesses to file for bankruptcy. Before filing for bankruptcy, individuals and businesses must make certain that they meet certain eligibility requirements under these new laws. If bankruptcy eligibility requirements are met, bankruptcy proceedings may continue. Consulting with our California bankruptcy attorney, Hamid Soleimanian, can help individuals or businesses get more information about bankruptcy laws in Los Angeles, California and determine their eligibility to file for bankruptcy.
Stop worrying about your debts
The various bankruptcy chapters have different eligibility requirements. Each distinct bankruptcy chapter also has very different outcomes. For example, Chapter 7 bankruptcy is a liquidation of assets. In other words, an individual's or business' non-exempt property will be sold. The proceeds from the sale of this property will be used to pay the individual's or business' creditors. Chapter 13 bankruptcy, on the other hand, sets up a repayment plan. The individual filing for Chapter 13 will be expected to repay their creditors based on a repayment plan schedule over a 3-5 year period. Our bankruptcy lawyer in Los Angeles can help individuals or businesses determine if they are eligible to file. Bankruptcy laws in California require the following: Chapter 7 Bankruptcy * Debtor must be an individual, married couple or business (partnership or corporation) Free consultation with Los Angeles bankruptcy attorneyChapter 13 Bankruptcy * Debtor must be an individual Credit counseling or debt counseling is now required before an individual or business can file for bankruptcy. Those seeking to file bankruptcy must attend credit counseling education at a qualified credit counseling center. Furthermore, those seeking to file bankruptcy may also have to complete additional financial education or certification before their debts can be discharged. Bankruptcy applicants must also pass a means test. This test is essentially a series of financial tests to determine if the individual or business qualifies for bankruptcy. The test is used to identify those individuals or businesses that have the financial means to make some payments to their creditors. Our California bankruptcy lawyer can provide assistance to those considering filing for bankruptcy. Hamid Soleimanian, bankruptcy attorney can help individuals and businesses ensure they meet all bankruptcy qualifications and determine your eligibility requirements to file bankruptcy. Call (818)501-2040 and find out if you are eligible to file for bankruptcy.
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