How To File Chapter 7 In California. So, if you bought a car for $7,000 but still owe $5,000, you have $2,000 of equity. (see california exemptions) the trustee sells the assets and pays you, the debtor, any amount exempted.
Both are listed as having priority unsecured claims against cuevas. This is your annual income according to the means test calculation. When you file for chapter 7, you lose control of the company.
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.
California is a community property state, and even if you file bankruptcy separately without your spouse, your community property is protected. If your income is higher than the california median you will need to complete the means test calculation to determine if you can pay back a portion of your unsecured debts through a chapter 13 bankruptcy. Treasury as owed more than $26,000. If you earn more than the median income for the state of california, you may still qualify to file for chapter 7 bankruptcy by deducting living expenses from your income.