What Kind of Bankruptcy Do I Qualify For in California

California Bankruptcy Qualifications

Are you concerned that you won't qualify for bankruptcy? Don't be. Most people qualify for some sort of debt relief through the bankruptcy code. It takes, however, an experienced lawyer to review the documentation and determine the bankruptcy option that is right for you.

Eligibility for Chapter 7 Bankruptcy

To be eligible to file for Chapter 7 bankruptcy, you must pass the means test. The bankruptcy means test denies Chapter 7 eligibility to those with income higher than the median California residential income and those who also fail to meet other means test calculations.

California Median Income Level:
1 Earner - $48,009
2 people - $62,970
3 People - $68,670
4 people* - $78,869

*Add $7,500 for each individual in excess of 4. Cases filed after March 15, 2011.

Eligibility for Chapter 13 Bankruptcy

Chapter 13 requires you to have a stable income with enough money disposable to make consolidated debt payments every month. Creditors are paid off over a three- to five-year period. Many debts may be paid at reduced interest rates and free of penalties.

To file Chapter 13, your debt amounts must be limited to:

•$1,149,525.00 or less in unsecured debts (debts that have no property attached to them such as credit cards, medical bills, etc.)
•$383,175.00 or less in secured debts (debts that have property attached to them, like a home, car, RV, etc.)

Eligibility for Chapter 11 Bankruptcy

Coming soon...

Chapter 13 or Chapter 7?

There are benefits to both Chapter 7 and Chapter 13:

• Chapter 13 allows you to handle debts that are not dischargeable in a Chapter 7 bankruptcy, like student loans and child support arrears.
• In Chapter 7, the person filing is protected from their creditors. However, those same creditors are free to collect from any co-signers. In Chapter 13, the co-signers can be protected as well.

To learn about all the advantages and disadvantages to the different types of bankruptcy, contact our law firm for a free consultation with attorney Jason Vogelpohl. The only way to find out what type of bankruptcy is right for you is to talk an experienced bankruptcy attorney. At Central Coast Bankruptcy, Inc., we only do bankruptcy and debt relief, and we do it well. Give us a call at 831-783-0260