Filing for Chapter 7 bankruptcy can be a powerful solution for individuals struggling with overwhelming debt. However, not everyone qualifies for this form of debt relief. At Anyama Law Firm, we assist Cerritos residents in determining their eligibility for Chapter 7 bankruptcy and guiding them through the legal process.

1. Meeting the California Means Test

The means test is used to determine whether you qualify for Chapter 7. It compares your household income to the median income in California for a similar household size:

• If your income is below the state median, you automatically qualify for Chapter 7.
• If your income is above the median, you may still qualify after deducting allowable expenses such as rent, utilities, medical costs, and childcare.

2. Types of Debt Eligible for Discharge

Chapter 7 bankruptcy allows for the elimination of most unsecured debts, including:

• Credit card balances
• Medical bills
• Personal loans
• Utility bills
• Certain tax debts (subject to conditions)

However, some debts cannot be discharged, such as child support, student loans (in most cases), and recent tax obligations.

3. Asset Protection Under California Bankruptcy Exemptions

California has two sets of bankruptcy exemptions that help filers protect their home, car, and personal property. If you have significant assets, an experienced bankruptcy attorney can help you choose the right exemption system to safeguard them.

4. Prior Bankruptcy Filings

If you have previously filed for bankruptcy, you may have to wait before filing again. Chapter 7 bankruptcy can only be filed once every eight years.

Find Out If You Qualify for Chapter 7

If you are struggling with debt in Cerritos, California, Chapter 7 bankruptcy may offer a fresh financial start. At Anyama Law Firm, we provide personalized legal guidance to help clients understand their options and navigate the bankruptcy process effectively.