Bankruptcy in Rancho Cucamonga 
 

Thank you for taking the time to visit the website of the Rancho Cucamonga Bankruptcy Law Offices of “insert attorney name”. 

If you’re afraid to answer your phone because you know a creditor will be on the other end, it might be time to contact your local Rancho Cucamonga bankruptcy attorney.  Please take a moment and visit our “Why hire us” page to see what separates us from the other Bankruptcy attorneys in and around Rancho Cucamonga.  Our dedicated attorneys can help you take care of your debts and get a fresh start.   

BK Overview

  • Bankruptcy provides you with a fresh start – a new beginning!
  • Bankruptcy is a Federal procedure that allows you to eliminate all your debts by liquidating your assets or by keeping your assets and paying your debts through a repayment plan.
  • Over two million people filed for bankruptcy help last year.
  • Some of the reasons people turn to bankruptcy are:
  • Illness
  • Divorce
  • Job loss
  • With bankruptcy protection, you receive an ‘Automatic Stay’
  • Stops creditors/collectors from harassing you
  • Stops foreclosure
  • Stops repossession
  • Stops lawsuits
  • Bankruptcy will remain on your credit report for 10 years.
  • A secured debt allows your creditor to put a lien on your property.
  • An unsecured debt is when the creditor has no claim to your property, such as credit card debt.
  • You are held responsible for any loans you co-signed.
 

United States Bankruptcy Court

  • In Rancho Cucamonga, bankruptcy must be filed in the Division Bankruptcy court.
  •  
    • California Central Bankruptcy Court
  •  

      Riverside Divisional office

  •  

      3420 Twelfth Street

  •  

      Riverside, CA 92501

  •  

      Telephone:  951-774-1000

  •  

      Hours:  Monday thru Friday - 9:00 a.m. to 4:00 p.m. 

 

First Steps 

Means Test

  • Your income will be compared to the median California income.
  • If your income is below the California median income for your size family, you qualify.
 

    Examples of Median California Incomes as of 1/1/09:

  •  
    • One-person family: $47,363
    • Two persons:  $62,690
    • Three persons:  $68,070
    • Four persons:  $77,014
 

Credit Counseling Course

  • Before you file - mandatory counseling session
  • A certificate will be given to you upon completion.
  • The course details your options during this stressful financial period.
  • It takes less than 2 hours – can be done online.
 

What is an Automatic Stay?

  • A Federal injunction provided to debtors.
 
  • Immediately stops:
  • Creditors from calling, sending letters, contacting you in any way
  • Foreclosure of your home
  • Repossession of your automobile
  • Lawsuits filed against you
  • Wage garnishment from your employer
 
  • The stay does not affect:
  • Child custody hearings
  • Child support
  • Paternity hearings
  • Criminal proceedings
 

Bankruptcy Types 

Chapter 7 (Liquidate Property)

  • Filing fee: $299
  • An Automatic Stay will stop creditor harassment, foreclosure, repossession.
  • Filing for Chapter 7 can only be done once in an 8-year period.
  • Involves liquidating your non-exempt assets in order to pay off your debts.
  • Discharge is usually completed within 60 days.
  • When a debt is discharged, it is wiped out.
 
  • Best option for unsecured debts, such as:
  •  
    • Credit card debt
    • Medical bills
    • Payday loans
 
  • Not all debts can be discharged:
  • Child support payments
  • Alimony
  • Student loans
  • Current tax obligations
  • Damages resulting from assaulting another person
  • Income taxes that were due over 3 years before you filed, can be discharged – if your returns were filed in a timely basis.
 

Chapter 13 (Reorganization or Restructure of Debts)

  • An option for a short-term financial problem.
  • Chapter 13 gives you the option to repay your debts with no interest involved.
  • It gives you a time frame of 3 to 5 years to make payments.
  • You must have a regular, steady income.
  • You need to have disposable income after paying expenses each month.
  • You get to keep your property.
  • Income taxes that were due over 3 years before you filed, can be discharged – if your returns were filed in a timely basis.
  • An automatic stay comes into effect – stops all creditors from harassing you.
  • About 2 weeks after filing, a creditor meeting will be scheduled where you will discuss your repayment plan.
  • At the end of the time frame, if all payments have been made, any remaining unsecured debt will be discharged.
 

Chapter 11 (Reorganization)

  • Used by businesses.
  • When you file your petition, you must include a list of assets, liabilities and finances.
  • You will be known as a debtor in possession – your own trustee.
  • You will keep all of your property.
  • 30 days after filing you and your attorney will attend a creditors meeting.
  • You are responsible for paying quarterly fees to the U.S. Trustee.
 
  • You must file operating reports on a monthly basis - detailing:
  • Profit and loss statement
  • Any disbursements
  • A complete balance sheet
 
  • During the first 4 months, you can file a Plan outlining your finances and:
  • Reason for filing
  • Assets and liabilities
  • Income
  • Expenses
  • Future earnings
  • Etc.
 
  • The Plan
  • You are allowed to operate your business and repay creditors by:
  •  
    • Future earnings
    • Sale of assets
  • Recent tax obligations and all secured claims must be paid in full with interest.
  • Creditors are allowed to vote on your plan or reject it.
  • It must be approved by a 2/3 majority.
  • The court has final approval.
 

Conclusion

If you’ve grown tired of the late-night collection calls from angry creditors and then having to explain to your kids why you’re so upset after getting off the phone, take action now before it’s too late! Call the Bankruptcy Law Offices of “insert attorney name” in Rancho Cucamonga.  We have helped numerous families and we can help you, too.