Bankruptcy in Murrieta 
 

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

Filing for bankruptcy is a tough decision that shouldn’t be undertaken lightly. Please take a moment and visit our “Why hire us” page to see why you should call us to help you through this difficult time.  We will help you determine if bankruptcy is the correct choice for you.   

Bankruptcy Overview

  • Filing for bankruptcy gives you a fresh start in life.
  • Bankruptcy is the legal process that provides relief to individuals and businesses in serious financial need.
  • Federal bankruptcy laws – National debt relief program for people in bad financial situations
  • Bankruptcy will stay on your credit report for 10 years.
  • Being a co-signer on a loan will hold you responsible for that debt.
  • You do not have to give up all of your property – California law allows for property exemptions.
  • U.S. Courts statistics show that almost 2 million bankruptcies were filed in a year.
 

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 your home from being taken away
  • Bankruptcy Abuse Prevention & Consumer Protection Act 2005
  • Must receive credit counseling at least 180 days before filing
  • Briefing can be in person, by telephone or over the Internet
  •  
    • States opportunities for credit counseling
    • Assists you in putting together a budget
    • Any debt management plan developed must be filed with the court
 

Bankruptcy Types

  • Chapter 7
  • Most common type of bankruptcy
  • Can only file for Chapter 7 bankruptcy protection once in an 8-year period
  • You can continue to make your mortgage payment or car loan – sign a reaffirmation agreement
  • Liquidates non-exempt assets – becomes cash - proceeds go to creditors
  • Best when you fall behind on credit card bills and medical bills
  • An automatic stay stops collectors from contacting you
  • Takes a few months until completion – you will receive a discharge on debts
  • Advantages:
  •  
    • Stops foreclosure
    • Stops repossession of your vehicles
  • Does not eliminate:
  •  
    • Child support
    • Alimony
    • Student loans
    • Tax debt
 
  • First Step:
  •  
    • Means Test - Must satisfy in order to qualify for Chapter 7 bankruptcy.
    • Your salary is compared to the median California income.
    • If it’s the same or less, you qualify.
    • If it’s higher
  •  
    •  
      • Any unsecured debts and disposable income are calculated to see
      • if you can pay $100 a month for 5 years
      • If you cannot pay, you will qualify for Chapter 7
 
  • Chapter 13
  • You are allowed to keep your property
  • United States Bankruptcy Code gives you 3 to 5 years to make monthly payments
  • This interest-free debt repayment plan is court-supervised
  • A detailed plan is written up stating how you will restructure your debts and how long it will take
  • Future income is used to pay off debts – you must have a regular income
  • Repayment will begin within 45 days
  • An automatic stay will be attached to your case – creditors are prohibited from contact you in any way
 
  • Chapter 13 vs. Chapter 7
  • In Chapter 13 – once all payments are made, you will receive a full discharge of debts.
  • In Chapter 13 – as long as the court approves a repayment plan, your creditors must accept it.

 

 

  • Chapter 11
  • Best option for businesses
  •  
    • Want to reorganize and pay their debts over a period of time.
  • Experiencing a temporary financial setback.
  • Most people who file for Chapter 11 are professionals:
  •  
    • Doctors
    • Lawyers
    • Entertainers
 
  • Reasons for filing Chapter 11:
  •  
    • Divorce
    • Lawsuit or judgment
    • Business problems
    • Illness
    • Tax problems
 

Conclusion

If you’re in a difficult financial situation that just keeps getting worse, filing bankruptcy may be the opportunity you need to regain control of your financial life.  Call the Bankruptcy Law Offices of “insert attorney name” in Murrieta.  We are more than just an ordinary bankruptcy law firm; we seek ways to provide innovative and creative solutions to your financial problems.  We serve clients in Southwest Riverside County, including the community of Murrieta.