Bankruptcy Overview

California Bankruptcy

There are several types of bankruptcies and it is important to know which kind is best suited to your circumstances.  When you are considering a bankruptcy due to overwhelming debt and inability to handle constant creditors and demands for payment, it is vital that you contact a Riverside bankruptcy attorney and find out what can be done for you.  J. Arthur Roberts, Attorney at Law, is not only a bankruptcy attorney but also a licensed real estate broker.  This means that Attorney J. Arthur Roberts has a wide scope of knowledge related to bankruptcies, foreclosures and other aspects of debt restructuring.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is the type of proceeding that “discharges” your debt.  This means that all creditor calls must stop and all demands for payment end.  Ordinarily this procedure takes 4 – 5 months to complete.  There are certain debts that cannot be discharged with a Chapter 7.  These include child support, alimony, student loans and some income taxes.  Foreclosure proceedings on your property will be put on hold during the proceedings, usually until completion of the bankruptcy proceedings, but most often at least for a month. Chapter 7 is a “liquidation” process and can give you a new financial start.  As many homes are currently mortgaged for more than they are worth, such properties are not an asset.  Your debt can also be discharged in relation to your home, although the mortgage company still has the right to foreclose on it.  You no longer have the actual debt in this case.  The benefit can be that the month or longer “stay” on foreclosure can give you the time you need to handle the foreclosure and find another solution such as a loan modification to keep your home.

Chapter 13 Bankruptcy

This is the bankruptcy filing that is most often used when an individual wants to postpone foreclosure on a home.  This is the bankruptcy proceeding that is a “restructuring” of your debts.  This is very workable when an individual or family is in over their heads, but are employed and making a paycheck, whether from another company or self-employed.  This is not an option for corporations or partnerships.  You may want to find out more about this option as it can work well when you want to stop the foreclosure proceedings on your home and work out a debt restructuring.  It is arranged that back debts are paid out over several years.  One must also have had counseling from an approved debt relief group within the past 180 days to qualify to file for Chapter 13.

If you need help and are in “over your head” with debt due to the mortgage crisis or other problem, it is strongly advised that you contact J. Arthur Roberts, Bankruptcy Attorney to assist you.  You need your questions answered and need all of the information in order to make a decision about the future. 

Contact Riverside Bankruptcy Attorney J. Arthur Roberts when you need assistance from a qualified bankruptcy attorney who can help you to solve your financial problems.