Qualifying For Chapter 7 Bankruptcy In Sonoma County

Qualifying For Chapter 7 Bankruptcy With High Income in Santa Rosa, CA

Filing for bankruptcy in Sonoma County or Sana Rosa, CA is generally similar to filing in other locations in the Norther District of California, but the relatively high average income for the County, and by extension your own high income, may be holding you back from qualifying for chapter 7 bankruptcy.  Remember, to qualify for chapter 7 bankruptcy you must pass the means test or have income below the state median for a household of your size.  Sonoma County and Santa Rosa residents may have incomes reflective of the higher cost of living in the area, and this high income may be sabotaging their eligibility for chapter 7 bankruptcy.  If your income is holding your back from chapter 7 bankruptcy here are a few things you should consider.

Talk to an experienced Santa Rosa bankruptcy attorney

An experienced Santa Rosa bankruptcy attorney can help you structure your expenses over 6 months to pass the means test in bankruptcy.  Under the means test certain expenses can be deducted.  An experienced Santa Rosa bankruptcy attorney will take an itemized list of your current expenses and tell you which expenses should become a priority and which should be decreased.

Start the process early

Many people considering bankruptcy wait until the last minute.  As soon as things become unbearable they turn to a bankruptcy attorney expecting the process to take days instead of months.  In reality, bankruptcy is best when there are a few months to prepare.

Don't hire the cheapest attorney in Santa Rosa

A cheap Sonoma County bankruptcy lawyer may just look at your situation and tell you to file for chapter 13 bankruptcy.  These attorneys may just look at your income and say "well, it's above the state median for a household of your size, so you don't qualify for chapter 7 bankruptcy."  A good bankruptcy attorney in Santa Rosa, CA will run the means test, deduct your secured debt payments and allowed expenses, and explore the possibility of increasing deductible expenses.  In short, pay a little more for an experienced bankruptcy attorney.

Bankruptcy Attorneys Can Stop...

Bankruptcy Attorneys Can Stop Your Credit Nightmare

Bankruptcy attorneys can help you file a bankruptcy petition with the United States Bankruptcy Court.  Upon filing your petition the automatic stay comes into effect.  The automatic stay serves as an automatic injunction against collection efforts such as wage garnishments, foreclosure, repossession, collection calls, etc.  Why does the automatic stay exist?  To protect the bankruptcy estate's property and to force creditors to participate in the bankruptcy system rather than resorting to self-help measures.

What Bankruptcy Attorneys Can Stop

A bankruptcy attorney can stop foreclosure.  If you are behind on your mortgage payments a bankruptcy attorney can help you keep your home through chapter 13 bankruptcy.  In chapter 13 bankruptcy you can cure defaults on long-term debts like missed mortgage payments while you keep your home.

A bankruptcy attorney can stop a credit card lawsuit.  When the bankruptcy petition is filed with the bankruptcy court collection proceedings, such as credit card lawsuits, are automatically stayed by federal law; that means that the state court credit card lawsuit must stop.  However, the California state court will want a party to the suit to file a "notice of stay of proceedings" which requires attaching the first page of your petition to a Judicial Council form.  Following the California Rules of Court some Judges will want you, the debtor, to file this form with the court, and some creditor attorneys will wait for you to comply.  Rest assured that federal law trumps state law, and bankruptcy case law, a creature of federal law, places the responsibility on the creditor to stay collection lawsuits.  Consequently, it is the responsibility of the creditor's attorney to file the notice of stay of proceedings to stop the credit card lawsuit.  If they do not you may be able to pursue a contempt proceeding for violation of the automatic stay.

A bankruptcy attorney can also stop repossession and wage garnishment.  However, if you file for bankruptcy and cannot redeem or reaffirm your secured car loan the creditor may be able to eventually reposes the car.  (Learn more about cars in bankruptcy).  If your wages are being garnished you can stop the garnishment by filing for bankruptcy.

In short, bankruptcy attorneys can stop your collection nightmare.  If you have gambling debt that has blossomed into insurmountable credit card debt, bankruptcy may be able to help.  (As long as your debt can be discharged in bankruptcy; fraudulent debt cannot be discharged in bankruptcy).  To learn more about your California bankruptcy options contact a local bankruptcy attorney.