Who is Eligible for a Chapter 7 Bankruptcy in California?
If your current monthly income is below the California median income, you can file a Chapter 7 case without worrying about the means tests. Higher income filers must pass the means test, which requires you to calculate your allowable expenses and subtract them from you income. If your monthly income, net of the statutorily allowed expenses, is over a certain threshold amount, then it is presumed that a Chapter 7 filing would be abusive. You can overcome this presumption by showing special circumstances that justify additional expenses or adjustments to income. Otherwise, your case will be converted into a Chapter 13 bankruptcy or dismissed.
Even if you are eligible for a Chapter 7 Bankruptcy, it is not necessarily the best option for your situation. If you want to keep your home and it is not completely covered by your California bankruptcy exemptions, then you may want to consider other options. Talk to a California bankruptcy attorney to learn more about the best type of bankruptcy for your situation.
The LG LAW OFFICE IN ONTARIO can help you decide whether a Chapter 7 bankruptcy is the right choice for you. Contact us to request your no-cost consultation with one of our experienced legal advocates.