There are many circumstances that cause people to have a need for filing bankruptcy. It could be from a job loss, medical condition, or change in family status. Any of these complications can lead to a quick accrual of debt. When you are trying to make the money that you have stretch out way more than it should, it may be time to file for bankruptcy. When you live in Temecula, it makes sense to hire an attorney that is located nearby. Regardless of which of the Bankruptcy Attorneys Temecula you choose, there is some standard information each one should be able to provide.
Personal bankruptcy can fall into one of two groups. Chapter 7 bankruptcy is the most commonly filed type and involves a complete liquidation of all property that you may have that is not considered exempt. Chapter 13 bankruptcy is basically a court ordered repayment plan. The type of bankruptcy that you get will depend on your circumstances.
Chapter 7 bankruptcy Temecula is generally one of the least stressful types to file. Even though it involves a liquidation process, most people who have reached the point where they need to file bankruptcy do not have anything to liquidate anyway. In the state of California, to be eligible to file under Chapter 7 there are certain income restrictions you must meet that are based on the yearly census information for the median state income. If you fall under this income level for your household, you will qualify.
There could be two reasons why you are only eligible to file under Chapter 13. If your household makes over the median state income level or you have a substantial amount of valuable property that you want to keep, you would file as a Chapter 13. In a Chapter 7, you must surrender certain property, such as homes valued over $50,000 or multiple vehicles that are over a specific value.
Most people believe that filing bankruptcy is an easy process. It is true that the forms might be easy to handle, but the process itself can get confusing very quickly. There are a lot of different regulations that must be followed completely, and bankruptcy attorneys will have access to this information and be able to help you through the process.
