Are you looking for information on Chapter 7 bankruptcy in Moreno Valley CA? The first thing you need to know is that this type of bankruptcy is common for individuals. While many people are aware of companies filing bankruptcy due to various issues, but there are still a stigma associated with an individual filing for a bankruptcy. However, it is important for you to keep in mind that filing the right type of bankruptcy gives you the much needed time in order to get your financial affairs in order and move ahead in life.
You should also know that there are certain inherent advantages to Chapter 7 bankruptcy as compared to some of the other bankruptcy options available to you. Therefore, you carefully need to consider your goals while deciding the chapter under which you want to file bankruptcy.
One of the first things you need to understand is that this particular type of bankruptcy is designed as a liquidation or straight bankruptcy. It has been created for those kind of debtors who are facing immense financial difficulties and are unable to take care of their debts. In most cases, debtors who choose to file under this chapter have problems with repaying their debts. However, not everyone is eligible for filing bankruptcy under this chapter.
All the individuals who choose to file under this chapter are required to pass a particular test wherein they need to show that they do not have any assets or other kinds of income in order to repay their creditors. Only if you pass the means test, you will be allowed to file bankruptcy under this chapter. However, it does not mean that you are not eligible to file bankruptcy in case you fail the means test. You are still eligible to file bankruptcy under Chapter 13 but you won't get the benefits of chapter 7 bankruptcy in Moreno Valley CA.
The biggest advantage of filing bankruptcy under Chapter seven is that you will get a complete discharge of many debts. However, it is important that you haven't committed any kind of fraud or otherwise, you won't be permitted to get discharge of your existing debts. You should also know that not all kinds of debts are discharged under this type of bankruptcy.
Certain debts including student loans, taxes, alimony, supported payments, debts for personal injury or criminal restitution are not discharged in this type of bankruptcy. Most of the other kind of debts such as your credit card bills, personal loans, dentist bills and other such bills are completely discharged. You're also not required to make any personal appearance before the judge in most cases. However, you are required to have at least one meeting with the creditors in order to ensure that you do not have the assets to pay them back.
Overall, chapter 7 bankruptcy allows you to get a hold of your life and start afresh when you are unable to take care of your existing debts. However, a lot of information is required to file this type of bankruptcy and it's important that all the information is correct. Therefore, it is recommended to hire the services of an experienced and reliable attorney specializing in this type of bankruptcy to help you through the process.
