Bankruptcy

Our office helps clients with petitions for Chapter 7 Bankruptcy, also called "Straight Liquidation Bankruptcy."
Please read below for the two different types of consumer bankruptcy.

Chapter 7 Bankruptcy

There are income requirements for filing a Chapter 7 bankruptcy.  You must make at or under the amounts listed below:

        1 earner $45,000 per year
        2 People $60,000
        3 People $65,000
        4 People $75,000
(These amounts are for 2008 and will be adjusted in the future.)
 
If your income is higher than the amounts listed, we have to perform a complete "Means Test."  The Means Test is a formula used to determine if you may still qualify for the Chapter 7.  Basically, it is a debt to income calculation.
 
Effect on Credit

The Chapter 7 Bankruptcy stays on your credit for 10 years.  You can file for a Chapter 7 Bankruptcy every 8 years and is measured from the date of filing.  While there is no exact measurement for the number of points off your FICA score, you can expect at least a 100 point drop.  You can rebuild your credit within a couple of years if you don't have new negative marks.  Things that help rebuild your credit are:  making your car payment on time, your house payment and on credit cards, etc.  Living at the same address for a long period of time and working at the same job can help as well.

Many people feel guilty for filing for bankruptcy.  It should be understood that our office does not pass judgment on our clients.  We handle hundreds of cases on a yearly basis, and we are aware of the state of the economy, and in particular, the real estate market and the effect it has had on so many industries and families.

 

 

Law Offices of Aaron O. Anguiano
429 13th Street
Modesto, CA 95354

Phone: (209) 567-1040
Fax: (209) 567-1051
Email: aoalaw@sbcglobal.net