San Fernando & Santa Clarita Bankruptcy Attorney

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy allows people in debt without the means to repay it to get a fresh start by having their debt discharged.  Discharged basically means your debts are wiped away and you don’t owe them anymore.  Most debts can be discharged.  While your bankruptcy is in process, which can take several months, all creditor calls and collection actions will cease.   Once completed, you will no longer owe the discharged debt.

The types of debts which you can include in a Chapter 7 Bankruptcy include personal loans, credit card bills, medical bills, even utility bills.  There are, however, certain types of debts that cannot be discharged, even through bankruptcy.  These types of debts include:

• Tax debt
• Child support
• Alimony payments
• Most student loans
• Court-ordered fines or penalties
• Any restitution owed to injury victims or crime victims

If you are in the situation of having overwhelming debt and are considering a bankruptcy filing, it is important you contact a bankruptcy attorney located in the San Fernando or Santa Clarita Valley.  With the help of a competent bankruptcy lawyer, it can be resolved as to what the best course of action for you is.   Let Cutter & Lax determine whether this is the option for you.

Bankruptcy Lawyer in San Fernando & Santa Clarita

If you find yourself in crushing financial trouble, there are laws that can help you get out of the situation you are in.  With the help of a knowledgeable attorney you have the opportunity to file for bankruptcy and make a new start.  However, you do need to qualify for this type of a bankruptcy.  There is a “means test” that must be passed to find out if you qualify to file for Chapter 7 bankruptcy or whether Chapter 13 is what is needed.  This test is used to determine whether you have the “means” financially to pay off your debt or not.  The purpose of this was to prevent individuals with high incomes from being able to discharge their debt.  You are also required to receive pre-bankruptcy financial counseling within the 18 months prior to the filing.   It is very important that you meet with a bankruptcy attorney from Cutter & Lax prior to taking the means test.  We can make sure that all the proper filings and your bankruptcy petition is filed correctly so as not to cause delays or a denial of your filing.

Contact a San Fernando & Santa Clarita Bankruptcy Attorney from the Cutter & Lax if you are considering filing Chapter 7 bankruptcy and need skilled legal counsel.