How To File Chapter 7 In California. The test only applies to higher income filers which means that if your income is below the california median for your household size you are exempt from the test and may file a chapter 7. (see california exemptions) the trustee sells the assets and pays you, the debtor, any amount exempted.
So, if you bought a car for $7,000 but still owe $5,000, you have $2,000 of equity. It is a liquidation bankruptcy, which means that the court sells all your assets for cash and then pays your creditors. The checklist below will help you assemble the documents you’ll need at every stage of chapter 7 bankruptcy.
The california homestead exemption starting 2021 is as high as $600,000 or as low as $300,000, depending on the median home price in the debtor’s county.
However, for the vast majority of california residents who simply want to eliminate their heavy debt burden without paying any of it back, chapter 7 provides the most attractive choice. The bankruptcy trustee takes over the business assets and determines whether it’s in the best interests of the creditors to sell the business as a whole or to sell off the assets. Take your current monthly income as calculated and multiply it by 12. This is especially risky because you can only file chapter 7 bankruptcy every 8 years, so there is no easy relief available if anything goes wrong.