Bankruptcy in Hemet 
 

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

When faced with the uncertainties of bankruptcy, you need an attorney who knows how to preserve your assets and get you immediate relief while helping to build a stronger foundation for your future.   Please take a moment and visit our “Why hire us” page to see what makes us the best firm for your particular case. 

Bankruptcy Overview

  • You get a fresh start in life when you file for bankruptcy.
  • Bankruptcy is the legal process of dealing with your debts.
  • Bankruptcy is listed on your credit report for ten years.
  • A secured debt allows your creditors to put a lien on your home or vehicle.
  • An unsecured debt, such as a credit card, does not allow a creditor to take any of your assets.
  • An automatic stay is an injunction that will stop collection activity, lawsuits, foreclosure, etc. against you when your bankruptcy petition is filed.
 

Consider filing for bankruptcy

  • If your debts are more than your salary
  • People demanding money from you are calling you all day long
  • You are receiving collection letters, past due letters daily
  • There are lawsuits being filed against you
 

United States Bankruptcy Court

  • Central District of California

    3420 Twelfth Street

    Riverside, CA 92501

    951-774-1000

    9:00 a.m. to 4:00 p.m. 

Bankruptcy Laws

  • Homestead Act - Protects you from losing your home.
  • Bankruptcy Abuse Prevention & Consumer Protection Act – has restrictions for people trying to file for Chapter 7 protection.

 

Bankruptcy Types

  • Chapter 7
  • Known as a Liquidation Plan
  • Can only file for Chapter 7 bankruptcy protection once in an 8-year period
  • Liquidates assets not protected by exemptions
  • Chapter 7 protection helps individuals, partnerships, corporations
  • Total process takes between 3-4 months from date of filing
  • Filing fee is $299
 
  • Means Test.
  •  
    • You must satisfy a Means Test in order to qualify for Chapter 7.
    • Your salary will be compared to the median California income – for your family size.
    • If your salary is the same or less than the median amount, you qualify.
    • If it is higher…
  •  
    •  
      • Your unsecured debts and your disposable income are calculated to determine if you are able to pay $100 a month to creditors for 5 years
      • If you are not able to pay, you will qualify for Chapter 7.
 
  • Advantages:
  •  
    • Stops foreclosure of your home
    • Stops repossession of your vehicles
    • Eliminates unsecured debts:
    • Personal loans
    • Credit cards – including department stores
    • Medical bills
 
  •  
    • Does not eliminate:
    • Student loans
    • Child support
    • Alimony payments
    • Most tax obligations
    • Damages incurred from driving while intoxicated
 
  •  
    • Automatic Stay is put in place – Stops:
    • collectors from harassing you
    • lawsuits filed against you
    • garnishment from your paycheck
 
  • Chapter 13
  • Called a Wage Earner Bankruptcy
  • Keep your possessions
  • You have a steady income
  • Interest-free debt reorganization plan
  • Stops foreclosure – you have equity in your home
  • Stops repossession
  • Plan is for 3-5 years (discharge of debts when completed)
 
  • Option for individuals (married, single) who have:
  •  
    • unsecured debt of no more than $308,000
    • secured debt of no more than $923,000
 
  • Keep your property while making monthly payments to a bankruptcy trustee:
  •  
    • Pay any late child support payments first
    • Pay any late tax payments
    • All late mortgage payments
    • Secured debt for cars, household furnishings
 
  • Chapter 11
  • Best option for companies and individuals who want to reorganize and pay their debts over a period of time – need some breathing room.
  • Experiencing a temporary setback.
  • Less than 5% file for Chapter 11
 
  • Most people who file for Chapter 11 are professionals with an above-average income:
  •  
    • Entertainers
    • Lawyers
    • Doctors
    • Executives
    • Etc.
 
  • Reasons for filing Chapter 11:
  •  
    • Lawsuits
    • Divorce
    • Business failing
    • Illness
    • Professional license loss
    • Tax problems
 

Conclusion

Filing for bankruptcy is a frightening time.  We pride ourselves in developing and maintaining close relationships with our clients.  This enables us to understand your goals and protect your interests during this stressful procedure.  Call the Bankruptcy Law Offices of “insert attorney name” in Hemet; we won’t let you down.