Chapter 7 is most commonly known as personal or straight bankruptcy. With this option, people can have most debts discharged and walk away with a clean slate and a fresh start.
Heston & Heston is a bankruptcy law firm in Irvine with highly experienced and knowledgeable attorneys. Both attorneys at the firm have practiced law for more than 34 years and are both Certified Bankruptcy Law Specialists. Their expertise and experience enable them to evaluate a client’s particular situation and provide effective and successful bankruptcy representation to clients throughout Orange, Los Angeles, Riverside, and San Bernardino Counties.
The Means Test
In 2005, the bankruptcy laws changed and a new Means Test was implemented that made it more difficult to qualify for Chapter 7 bankruptcy. The Means Test is a complex analysis of your current income to determine the amount of “disposable income,” by deducting certain Internal Revenue Service guideline expenses, some of your actual expenses and some hybrid expenses from your income to determine if you qualify for Chapter 7.
Our attorneys have extensive experience working with people to find creative approaches and solutions to help resolve Means Test issues. Once you retain Heston & Heston, you can refer your creditors to our office which keeps the phones quiet at home. Once we file the bankruptcy petition, all creditor collection calls, levies, garnishments or foreclosures will stop as a result of the automatic stay.
With Chapter 7 bankruptcy, most unsecured debt can be discharged, including:
- Credit card debt
- Medical debt
- Personal loans
- Income tax debt under certain circumstances
Chapter 7 is not available to every client, nor is it advisable to every person who would qualify for Chapter 7. We work with clients to understand their other options, including Chapter 13 and to identify which options would work best for the client’s particular situation.