How to File for Bankruptcy in Moreno Valley, California
Bankruptcy laws are set by the federal government and do not differ from state to state, but it does help to know where to turn locally for resources and guidance. Residents of Moreno Valley will file bankruptcy at the Bankruptcy Court for the Central Division of California, Riverside Division. The decision to declare bankruptcy is never an easy one to make, so it's best to collect as much information as possible before you take the leap.
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Instructions
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Find a lawyer who specializes in bankruptcy. While you do have the option of representing yourself in your bankruptcy hearing, a bankruptcy lawyer can help you navigate the tricky waters of bankruptcy laws, find and complete the right forms, and determine the best options for your needs. (See Resources section for a directory of bankruptcy lawyers in or near Moreno Valley.)
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Review your options. Assuming you've already pursued bankruptcy alternatives, such as debt consolidation, and are determined that bankruptcy is the right route for your situation, the next step is to determine which type of bankruptcy is best for you. There are two types of bankruptcy: Chapter 7 and Chapter 13. Chapter 7 eliminates most debts (some debts, like federal student loans, aren't able to be discharged) and Chapter 13 bankruptcy restructures the debts into a reasonable payment plan that fits into your budget.
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Take a qualification test (otherwise known as a "means test"). Before you can discharge your debts, you have to essentially prove that you are legitimately unable (and not just unwilling) to repay your debts. Typically, if you have enough cash and other assets available, after paying for your basic needs, to pay at least 25 percent of your debts, your only option may be to file Chapter 13, where you will end up repaying a portion of your debts. You can access the test online (see Resources) or with the help of your bankruptcy lawyer.
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Disclose your assets. Before you can file your bankruptcy claim, you must list all of your assets for full disclosure in bankruptcy court. Making a list of your assets before meeting with your attorney can help you save time and frustration during your meetings.
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Complete mandatory credit counseling. New bankruptcy laws require applicants to attend counseling from an approved credit counselor before you can move forward with your case. This counseling often requires you to pay a nominal fee and can often be completed online from your home computer. (See Resources for a listing of approved credit counselors or ask your attorney for references.)
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Identify property exemptions. There are certain exemptions that can be taken per California state law. An exemption essentially means that a certain property, like your home or vehicle, cannot be taken to pay off your debts. For a complete list of current exemptions, see Resources or contact your attorney.
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Attend the scheduled bankruptcy meeting. Once the forms have been completed and filed, the Riverside Bankruptcy Court (see Resources for location information) that governs Moreno Valley bankruptcies will schedule a meeting with your creditors. The purpose of the meeting is to make sure all paperwork is in order and that there are no loose ends or questions from the bankruptcy court or your creditors. If your bankruptcy is granted, you will receive written notification from the bankruptcy court.
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References
Resources
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