subject: Should You File For Bankruptcy With Riverside Lawyers? [print this page] If you find yourself or your business in a dire financial situation you feel you cant get out of on your own, you may be considering bankruptcy. Before considering bankruptcy, however, find a good Temecula attorney and ask yourself a few questions:
1)Do you qualify for bankruptcy? A business owner should contact Riverside lawyers to determine whether bankruptcy is truly the best route. Specialized bankruptcy lawyers will analyze your entire business or home situation to see if bankruptcy is right for you, or if there are other methods of figuring out repayment of debts.
2)Which kind of bankruptcy is appropriate for your financial circumstances? Chapter 7 and Chapter 13 are the two most common types for home owners and business owners. Which one is right for you will depend on your debt and your assets, if you have any. In basic terms, Chapter 7 is the liquidation of your property to pay off debts (which might mean giving up your home, car, or other high-value assets, depending on the laws of the state you reside in). Chapter 13, on the other hand, restructures you payment schedule over the course of several years to ensure you can pay off your debts.
3)How will your property be affected? Liquidating your property by Chapter 7 bankruptcy is obviously a very last resort. Is liquidating your property really what you need to do right now, or are there other options?
Chapter 7 and Chapter 13 bankruptcy filing is almost exactly the same in every state, with few notable exceptions, such as assets that can be kept in a Chapter 7 bankruptcy.
When considering bankruptcy in the state of California, you will have to go to a local credit counseling agency.
You will have to perform a means test before filing. The mean test basically consists of comparing your income by the median California household similar to yours. If your income is less than the median, you are qualified for Chapter 7 and Chapter 13 bankruptcies. To find the most recent median household incomes in California, which is constantly updated, go to the U.S. trustee website and go to the Bankruptcy Reform page for the Means Test.
There are four districts in California in which you can apply for bankruptcy: the Northern district covers the Bay area and Monterey; the Southern Districts includes areas near San Diego and Imperial counties; the Central District covers the area in and near Santa Barbara and Los Angeles.
When it comes to determining what property you can keep after a Chapter 7 bankruptcy, each state has its own list of assets, as well as the federal list of assets. Some states adhere to their own list, the federal list, or allow debtors to choose between on or the other. California, however, does not let your choose between the federal and state list, yet is unique in that the state has two of its own lists that you can choose from.
Knowing fully the process of filing for bankruptcy in California can put you on the right track to alleviating your financial woes.
