Getting Prepared for a California Bankruptcy Filing

The faster you can get your documentation together, the faster your petition can be filed so that you can get bankruptcy protection to take the load off of your shoulders. One thing that will help your attorney greatly is if you can make a list of your bills before you can consult with them. Knowing what bills they have is one of the biggest challenges that people face, especially if the debts are old. Your attorney will need to know the name of the company, their address, the total amount of the debt, whether the debt is held jointly with someone else or individually, the approximate date that you incurred the debt, and what type of debt it is such as a student loan, medical bills, credit cards, or any other type of bill. If you don’t have every single detail, you should still be all right, but it is important to document as much as you possibly can if you want to file a fast bankruptcy in Laguna.

Qualifying Under the Means Test

Under current bankruptcy law, consumers must pass a means test in order to qualify for a chapter 7 bankruptcy filing. The means test is basically a calculation that is made to determine whether or not a debtor meets income criteria that is established by the Federal Bankruptcy Court. The test will take into consideration the debtor’s total income, their monthly expenses, the number of people in their household, and other factors, to determine whether or not they qualify to file a chapter 7 bankruptcy. Competent attorneys from a reputable debt relief agency will be able to access the means test, to see if you qualify.

What Happens If You Fail to Pass the Means Test?

If debtors do not pass the means test, then they may be forced into chapter 13 bankruptcies instead, where they will be required to pay back all or part of their debts over a long period of time. The bankruptcy trustee will oversee chapter 13 bankruptcies from start to finish, and they will require a plan from the debtor’s attorney that includes information on how they intend to pay the debts off. Unsecured creditors usually get much less than what they are actually owed in a chapter 13 bankruptcy.

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