Personal Bankruptcy in Riverside
Posted By Price Law Group
Millions of Americans have been affected by the current economic downturn and have sought financial relief by filing bankruptcy. If you are facing a home foreclosure or high medical bills or if you avoid creditor calls hoping they will stop calling, you may need help. Nobody wants to file bankruptcy and it is a serious decision which should be carefully considered. If you live in Riverside and would like more information about filing bankruptcy in Riverside, a Riverside bankruptcy lawyer can help.
Filing Chapter 7 bankruptcy in Riverside may allow you to eliminate most or all of your debt within three to six months. Filing Chapter 13 bankruptcy in Riverside does not automatically discharge your debt, but may allow you to develop a more favorable bankruptcy repayment plan which can discharge most or all of your debt within three to five years.
Filing Chapter 7 Bankruptcy in Riverside
Filing Chapter 7 bankruptcy in Riverside can be a fast, simple and inexpensive way to discharge most of your debts. Current bankruptcy laws have made it more difficult to qualify for Chapter 7 bankruptcy so it is important to talk to a Riverside bankruptcy attorney.
Filing Chapter 7 bankruptcy begins by filing the bankruptcy petition in bankruptcy court. The bankruptcy petition will include the filer’s creditor information, a list of their non-exempt and exempt assets and the amount of debt they owe. The court will review the bankruptcy petition, schedule the 341 Creditor’s Meeting and assign a trustee to liquidate the filer’s assets. The trustee is responsible for distributing the proceeds from the liquidation to the creditors for debt repayment. Many Chapter 7 bankruptcy filers do not have property to liquidate; these cases are considered “no asset cases”. Chapter 7 bankruptcy can be completed and qualifying debt discharged generally within four to six months of filing the bankruptcy petition.
Filing Chapter 13 Bankruptcy in Riverside
Filing Chapter 13 bankruptcy in Riverside does not immediately discharge debt, but it may stop a home foreclosure and property repossession and allow the filer to keep their assets by creating a new payment plan for debt repayment. Chapter 13 bankruptcy is considered a “reorganization” not a “liquidation”. This is important to filers who have a lot of property or assets they want to keep.
Not all Riverside residents can file Chapter 13 bankruptcy in Riverside. Filers must have a steady, dependable income source available for debt repayment. Riverside filers also can not have unsecured debt which is more than $269, 250 or secured debt which is more than $807,750.
Personal Debts Not Eliminated By Filing Personal Bankruptcy
Not all debt is eliminated by filing Chapter 7 or Chapter 13 bankruptcy in Riverside. Certain types of debt are not discharged and the filer is still responsible for debt payments. Debts not discharged are defined under federal bankruptcy law and do not vary by state. Filing bankruptcy in Riverside, California will not discharge the following:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Riverside
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy
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