Questions & Answers

– You Ask We Answer –

ANo, there is no debt limit to file a Chapter 7.  Only a Chapter 13 has a debt limit which today sits at $526,700 for unsecured debt and $1,580,125 in secured debt.

ANo, you are not required to have an attorney, however, know there are risks associated with going it alone. Bankruptcy Law can be very confusing and court employees cannot provide guidance or offer legal advice.

This is why your bankruptcy lawyer is important. An attorney can educate you on the process, help you determine which type of bankruptcy is best for your unique situation, answer questions about the law or process, help you complete the necessary forms and paperwork, and explain any tax implications that result from the Chapter 7 Bankruptcy proceedings.

AThe entire Chapter 7 bankruptcy process takes about four to six months.  Frazee Law Group has been successful in getting debt discharged under Chapter 7 Bankruptcy as quickly as 4 months.

AYou must pass a “Means Test”  to qualify for Chapter 7 bankruptcy.  The means test will review your income, expenses, secured debt, and unsecured debt to determine if your disposable income is below the median income for California.

AChapter 7 bankruptcy removes most types of unsecured debt:

• • • •  Personal loans not tied to an asset
      •  Medical Bills
      •  Credit Card Debt
      •  Obligations for leases and contracts