(949) 450-8500
Bankruptcy Help for Business and Individuals

Do I Qualify for Bankruptcy?

Generally, any person who is 18 years or older may file bankruptcy, regardless of their citizenship status. Married couples may file jointly or individually. Individuals, partnerships, or corporations can file a chapter 7 bankruptcy petition if they reside, have a place of business, or property in the United States.
If you were granted or denied a Chapter 7 discharge in a prior case within the last 8 years, you might not be entitled to receive a discharge in a subsequently filed Chapter 7 bankruptcy in California.

Additionally, individual consumers generally need to pre-qualify under a “means test” or qualify by other methods to legitimately file a Chapter 7 bankruptcy petition. An individual may still be able to file a Chapter 7 bankruptcy even if they do not meet the means test requirement under certain circumstances, such as when much of their debt is business related. You should seek legal advise before assuming that you do not qualify to file a Chapter 7 bankruptcy petition.

A consumer generally must qualify under the Chapter 7 means test in order to file for Chapter 7 bankruptcy protection. The means test first compares your income to the median income in your state. If your income is lower than the median income in your state, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income in your state, additional calculations regarding your income and allowable expenses are required to determine whether or not you can file for Chapter 7 bankruptcy.

For bankruptcy purposes, a persons’ residency and domicile is the location where that person has lived for the majority of the 180 days preceding the bankruptcy filing. So, someone could file bankruptcy in California after living here for 91 days. However, a individual can only claim California’s asset exemptions if he or she has resided in California for the previous two (2) years.

People who do not qualify for a Chapter 7 bankruptcy usually qualify for Chapter 13. They typically make enough income to cover any living expenses, but not enough to completely pay off all of their debts. When individuals do not qualify to file for a Chapter 7 bankruptcy, they often will be eligible to file for a Chapter 13 bankruptcy because there is no “means test” to disqualify them as there is with a Chapter 7.

We will help you correctly fill out the paperwork for the means test. The form is six pages long and asks for a lot of financial information regarding your household income and expenses.

To learn more, contact our offices at 949 – 450 – 8500 for your FREE consultation.

My decision to engage Paul Kurtzhall with the law firm of Hallstrom, Klein & Ward LLP was instrumental in getting my life back on the right track.

I wish I have the right words to describe my exceptional experience with Grant Hallstrom and his incredible team. When time comes to count on someone reliable to understand your situation and help you going through challenges, Grant is the best ally. The level of expertise and professionalism reflect the outstanding result from a desperate situation to a life changeing experience. I couldn’t be more grateful for what he did for my family and my business. Very humbly, thank you Grant.

Call now: (949) 450-8500

HALLSTROM KLEIN & WARD LLP
IRVINE, ORANGE COUNTY, CA
(949) 450-8500
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