Legal Question in Bankruptcy in California

Re: bankruptcy

For individual debtors, the most significant changes are the means test and course requirements.

The means test is somewhat complicated. In essence, depending on your family size, you have to have a gross income that falls below the mean established for your state for the year. Also, your discretionary income (your takehome pay minus your expenses -- not including repayment of debts being discharged) must not exceed $100. If you fail to meet any of these conditions, either your bankruptcy will be dismissed on a motion brought by the U.S. or Chapter 7 Trustees, or will be converted to a Chapter 13, where you would have to repay some or all of your debt over a few years.

As for the education, you must undergo pre-bankruptcy credit counselor by an approved agency within 180 days before filing, and you must take an approved financial management course during the bankruptcy or there will be no debt discharge.

There are other more specific changes involving certain types of debts information about which you can find elsewhere. Good luck to you!

Re: bankruptcy

The law changes cover about 600 pages and are a bit too involved to cover in a simple e-mail. The only way to determine if you qualify is to have a consultation with a qualified bankruptcy attorney.