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Personal Bankruptcy Los Angeles BK question for Chapter7
- Thread Starter davo
- Start date
adjusterjack
Super Moderator
I don't know about that. You'll have to talk to a bankruptcy attorney.
The equity in your home is exempt up to $600,000 as of 2022. Might have been adjusted upward this year.
See:
Homestead Exemption California: The Ultimate Guide - Talkov Law
What are trying to discharge? The credit card debt? yes. The equity loan? Yes and no. You may be able to discharge your personal liability, the the lien will remain and they can foreclose after the bankruptcy is discharged. The home mortgage, the same. The student loan debt, no based on what you have posted. Whether you can file a chapter 7, will depend upon your income and other assets.
army judge
Super Moderator
These CA attorneys answer MANY of your concerns.
Step by Step Guide to Chapter 7 Bankruptcy in California
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Are You Eligible for California Chapter 7 Bankruptcy?
Take the Bankruptcy Means Test to Find Out
The Chapter 7 bankruptcy means test can determine if a California petitioner's income level and expenses are eligible to file for a Chapter 7 bankruptcy. The formula is designed to prevent individuals from Chapter 7 bankruptcy if they make enough money to pay down unsecured debts. If an individual does not qualify for Chapter 7 as determined by the Means Test of California, he or she may be able to file for a Chapter 13 bankruptcy to repay a fraction of the accrued debt.
Taking the Chapter 7 means test does not necessarily entail that an individual has to be impoverished to be able to file for a Chapter 7 bankruptcy. An individual who qualifies for a Chapter 7 bankruptcy in California may still have a high income if he or she has high car and/or mortgage payments, high taxes, and/or other expenses.
Understanding How A Chapter 7 Means Test Works
The Chapter 7 means test was designed to limit the use of a Chapter 7 bankruptcy to individuals who can no longer pay off their debts. The Chapter 7 bankruptcy works by subtracting certain monthly expenses from the individual's present monthly income. The current income will be determined by the person's last six (6) month's income prior to filing for bankruptcy. This will determine the person's available income.
If a person has a high amount of available income, the more likely it is that he or she will not be able to use a Chapter 7 bankruptcy to pay off the accrued debt. Instead, the individual will be expected to use the available funds to repay creditors.
Another important factor is that you only need to take a means test if the bankruptcy filer has predominantly consumer debts in California, not business debts.
Chapter 7 Bankruptcy Means Test in California
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2023 Median Income Limits to Nail Bankruptcy Means Test in Calif
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CA Chapter 7 Eligibility Requirements | Weintraub Zolkin Talerico & Selth LLP
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flyingron
Well-Known Member
I hate to say it, but even if you were to get the other loans discharged (and I agree with doucar on the possibilities), you can't afford that mortgage on your income.
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