RosevilleBankruptcy.com will be a blog dedicated to the unique challenges facing Roseville residents who need bankruptcy relief. Due to high
real estate values and relatively high incomes per household, many residents of Roseville will not qualify for chapter 7 bankruptcy. These residents will need to pursue debt settlement or file chapter 13 bankruptcy. Accordingly, many posts on this blog will focus on chapter 13 bankruptcy issues.
The Problem Facing Many Roseville Residents Contemplating Bankruptcy
- High Income. Some people are well off in relation to the California median income. Unfortunately, high income is not good for filing chapter 7 bankruptcy. To qualify for chapter 7 bankruptcy your income (or rather, "current monthly income") must be below a certain threshold based on the annual median household income in California. If your income is above this threshold, and if you fail the means test, you may be forced to file chapter 13 bankruptcy.
- High Home Value. High home values can work against you in chapter 7 bankruptcy. In theory, assets with a high value that cannot be protected in bankruptcy can be seized be the Trustee and sold. Using California exemptions we can protect up to $75,000 of equity for a single individual and $100,000 for a family unit. With that in mind, Roseville real estate values have risen dramatically over the past 3 years. If the equity in the home exceeds the amount we can protect the individual may need to file chapter 13 bankruptcy. In chapter 13 bankruptcy the individual can keep their property in exchange for dedicating their disposable income to a 3 to 5 year repayment plan. However, unsecured creditors must receive through a chapter 13 plan at least what they would have received in a chapter 7 liquidation.
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