Chapter 7 Bankruptcy



You guys are great. I have already referred three people to you and I am always telling people how you helped me. I can't thank you enough.

M.D., Oakland, California

Filing Bankruptcy in Contra Costa, Solano or Sacramento County

As a Walnut Creek bankruptcy attorney we have answered thousands of bankruptcy questions to our clients and collected the best knowledge about the process on this website. I keep updating my website to offer current information about debt reduction, debt settlement and bankruptcy.

What is Chapter 7 bankruptcy ?

Chapter 7 bankruptcy is named from the chapter of the Bankruptcy Code which can be found at Chapter 7 of Title 11 of the United States Code.

Chapter 7 bankruptcy is designed to give the debtor a fresh start. In Chapter 7 bankruptcy all dischargeable debts will be canceled. Creditors are prohibited from trying to collect any pre-bankruptcy debt in the future. Most people get to keep all of their property including their home in Chapter 7 bankruptcy.

While filing a Chapter 7 bankruptcy may seem simple, knowing all existing options, filing the proper court documents and understanding how to protect your property through the bankruptcy can be confusing and overwhelming.

How it works

Before a bankruptcy petition can be filed with the bankruptcy court, in most cases the filer has to pass the means test. Before the changes to the bankruptcy code in 2005 most filers could chose the type of bankruptcy (Chapter 7 or Chapter 13) that suited their particular goals. Credit card lobbyists pushed through changes to the Bankruptcy Code, which made it much harder for consumers to cancel their entire debt. Instead, more and more people are forced to repay part of their debt over a three- to five- year period. To find out whether a consumer can cancel all of his debt under Chapter 7, the consumer must first calculate his/her current monthly income. This figure must be compared to the median income for the size of the consumer’s household in California. If the current monthly income is higher than the median income in California, the filing of the bankruptcy petition will be presumed to be an abuse of the bankruptcy process unless the consumer can show that they passed the means test.

IRS allowable expenses

Under the new law families, or individuals are given certain dollar amounts for allowed expenses. For example, food, clothing, rent, and car expenses are all determined by the IRS standards. These expenses change every year. To find out the most recent dollar amounts go to the U.S. Trustee Website.

Rinne Legal's attorneys serve the cities of Walnut Creek, San Francisco, Sacramento and Fairfield. We have clients in the counties of San Francisco, Sacramento, Contra Costa, Solano, Alameda, Santa Clara and San Francisco.