Bankruptcy Attorney in Temecula
Bankruptcy Attorney in Temecula California: Ask for Chapter 7 or Chapter 13?
The services of a Temecula bankruptcy attorney can literally help to turn your life around, but you’ll need to decide straight away if you intend to file for Chapter 7 bankruptcy or Chapter 13. Each type serves different people and different purposes, so it’s critical to understand the differences and learn which is right for you. And while a Temecula bankruptcy attorney can provide clear guidance on these matters, a little education beforehand can go a long way toward helping you understand what direction you should take.
Most individuals in the United States that file bankruptcy do so under protections afforded by Chapter 7 of the bankruptcy code. This type is often referred to as "liquidation bankruptcy." People who file for Chapter 7 are often able to keep their homes and some other assets- especially personal belongings. However, some assets that are not considered exempt will be sold by the court to satisfy creditors. This process is generally quite rapid, with most proceedings completed in 3 to 6 months.
In order to qualify to work with a Temecula bankruptcy attorney on a Chapter 7 case, you’ll need to own very little property and assets and have no money left over after meeting basic essential living expenses. (Or not be able to meet your basic expenses at all.) This will be determined by a congressionally-developed and administered means test to prove the full scope of your finances and assets. Additionally, you’ll be required to complete counseling with a federally-approved CCCS service as well as government-sponsored bankruptcy education.
If your Chapter 7 bankruptcy is approved (actually referred to as being "discharged") nearly all of your debts will be eliminated and creditors will have no rights to collect on any balances included in the proceedings.
Chapter 13 is a little different. Both individuals and business owners should consider hiring a Temecula bankruptcy attorney for a Chapter 13 filing if they:
- Have substantial equity in a home or other property, or in other types of assets.
- Have an income and can meet your basic living expenses but not your other monthly debt payments.
If you meet these qualifications you can hire a Temecula bankruptcy attorney to file a Chapter 13 reorganization case on your behalf. This type of bankruptcy allows you to keep your property and assets while you pay your debts according to a structured plan developed and managed by the bankruptcy court. This repayment plan is generally spread out over 3 to 5 years and allows a person to continue to conduct business without being harassed by creditors.
Deciding between Chapter 7 or Chapter 13 bankruptcy before filing the case is absolutely essential due to the fact that if your Chapter 7 case is rejected, you can be forced into Chapter 13 by your creditors under not-so-favorable conditions. For this reason you should always consult with a professional Temecula bankruptcy attorney- even if you attempt to file on your own. Paying for a short advisory session could prove the difference between a successful second chance and a disastrous financial blunder.