what are the requirements for going BK in California?
Response 1: He needs to meet the Means Test if he is filing a personal bankruptcy. If he is not filing a personal bankruptcy or if his debts are primarily non-consumer debts, there is no Means Test. He (“You”) would be eligible to file for Chapter 7 bankruptcy protection, if you meet the Means test—the income test. If your income is equal to or less than the current income guidelines for your family size in your state, you would be eligible to file for a Chapter 7 bankruptcy all things being equal. The income used in calculating the Means test is the income for the 6 months before the filing of the bankruptcy petition. This means that if you are filing for bankruptcy protection this month, August 2013, the income that would be used is your income from February 2013 to July 2013. If you are filing next month, September 2013, the income that would be used in the Means Test calculation would be the income from March 2013 to August 2013, etc. In Chapter 7, if the Court grants you a Discharge your debts will be wiped out with some exceptions such as some taxes, child support, alimony, which are not dischargeable. You would get a clean state, a fresh start.
These are current income guidelines for the State of California:
Family size of one person $48,415.00
Family size of two persons $63,030.00
Family size of three persons $67,401.00
Family size of four persons $75,656.00
Add $8,100.00 for additional individual
The filling fee for Chapter 7 is $306.00.
Am i assuming correctly that going BK is relatively inexpensive for him if he has no real property and that suing and enforcing a judgement etc by me might not be so inexpensive?
Response 2: Bankruptcy is an expensive proposition and it is only used as a last resort by most debtors. For one thing, filing for bankruptcy Chapter 7 would stay on his credit file for 10 years making it impossible for him to get credit—bankruptcy filing devastates one's credit score. Most people do not file for bankruptcy just for the hake of it. They file after they have exhausted all options and usually because their creditors are not willing to work with them.
Still can't decide what to do? Any advice?
Response 3: I am sorry, the terms of service prohibit me from giving you legal advice.