Bankruptcy in Riverside 
 

Thank you for visiting the Riverside Bankruptcy Law Offices of “insert attorney name”. 

When you are faced with an important life decision, the advice and assistance of a bankruptcy attorney often proves crucial to your understanding of the issues involved, and your satisfaction with the ultimate outcome.  Please take a moment and visit our “Why hire us” page to see what makes us stand out from the other Bankruptcy attorneys in and around Riverside. 

BK Overview

  • Filing for bankruptcy provides you with a fresh start in your life.
  • Bankruptcy is a legal process that provides relief to individuals and businesses that have fallen into a bad financial situation.
  • Bankruptcy falls into 2 types:
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    1. liquidation
    1. reorganization
  • Creditors are given a legal solution through involuntary bankruptcy petitions.
  • Makes sure that assets are distributed fairly to all creditors.
 

United States Bankruptcy Court

  • The Bankruptcy court is located in downtown Riverside at:
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    • California Central Bankruptcy Court
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      Riverside Divisional office

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      3420 Twelfth Street

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      Riverside, CA 92501

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      Telephone:  951-774-1000

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      Hours:  Monday thru Friday - 9:00 a.m. to 4:00 p.m. 

U. S. Bankruptcy Code

Options to help you with your debts: 

  • Chapter 7 Protection
  • Liquidates your assets in order to pay for unsecured debts such as medical bills and credit cards.
  • Chapter 13
  • Stops foreclosure of your home, repossession of your automobile and allows you to keep them while repaying your debts over a 3-5-year period.
 

 

Bankruptcy Types

  • Chapter 7
  • Filing fee as of March 1, 2009 is $299.
  • You can only file for Chapter 7 protection once in an eight-year period.
  • Most common when you cannot pay your:
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    • Medical bills
    • Payday loans
    • Credit card bills
  • Once you file your petition, creditors are prohibited from trying to collect money from you – no telephone calls – no letters.
  • An automatic stay is put into place – stops any lawsuit proceedings against you for a period of time.
  • Non-exempt property can be sold in order to pay creditors.
  • The court will discharge your outstanding debts (includes any car accident judgments you may have been involved in, previous tax obligations and wage garnishments) in about 3 months.
  • A non-filing co-signer will remain liable for a debt even if it has been discharged.
  • Non-Dischargeable debts cannot be eliminated.  Examples are:
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    • Child support
    • Student loans
    • This year’s income tax debts
 
  • Before filing, you have to qualify through a Chapter 7 Means Test – there are 2 parts:
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    • Over 95% of all filers qualify.
    • Your income is first compared to the median California income.
    • If it is the same or less than the median California income, you qualify for Chapter 7 bankruptcy protection.
    • If it is higher, the court jumps to the second part:
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    •  
      • Calculates your disposable income plus other unsecured debts.
      • Takes into consideration the next 5 years –
      • If your disposable income is less than $100 a month, you will qualify.
      • If your disposable income is more than $6,000 but less than $10,000, you are able to file.

 

 

  • Chapter 13
  • Common option for a short-term financial setback:
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    • Job loss
    • Behind on house or car payments – do not want to lose
    • Long-term illness
    • Unexpected crisis
  • Fallen behind on monthly bills – have a steady income – have disposable income
  • Involves a repayment plan over a 3-5 year period
  • Stops foreclosure
  • Stops repossession
  • You get to keep your property – nothing is liquidated
  • Tax debts cannot be discharged in Chapter 7 but can be included in a Chapter 13 repayment plan.
  • An automatic stay is imposed upon filing.
  • A non-filing co-signer is protected under Chapter 13 (not under Chapter 7).
  • Student loans can be included in a Chapter 13 repayment plan (not under Chapter 7).
  • All creditors will receive a notice from the court.
  • About 2 weeks after filing, a notice of Commencement of case will be sent to creditors.
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    • A creditors meeting is scheduled – states time, date, location, deadlines for all claims
  • At the end of the 3-5 year period, if all payments have been made – any unsecured debt remaining will be discharged.
 
  • Chapter 11
  • Designed for large corporations, businesses, partnerships
  • A reorganization of your financial situation – court-supervised repayment plan – up to 6 years
  • Multi location companies use to close unprofitable businesses
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    • Get out of lease agreements
  • An automatic stay is set up
  • Allows you to stretch your tax payments to the IRS
  • Reasons to file Chapter 11:
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    • Stops foreclosure
    • Stops repossession
    • Gives you time to reduce monthly expenses and make a profit
    • Stops IRS seizures, tax levies
 
  • Chapter 12
  • Only available to families that “farm” for a living.
  • Debts cannot exceed $1,500,000.
  • Most people in Riverside do not qualify for Chapter 12 – Family Farmers
 

 

Conclusion

We pride ourselves on developing and maintaining close relationships with our clients, enabling us to understand your goals and protect your interests in all matters that may arise.  If you’re considering bankruptcy, schedule a free consultation with one of our bankruptcy attorneys. Call the Bankruptcy Law Offices of “insert attorney name” in Riverside.  You will get answers to your questions and be able to make an informed decision about what you should do next.