Bankruptcy in Moreno Valley, California
Bankruptcy informed the situation of a person’s inability to pay one’s debts. There is a considerable percentage of bankruptcy in the United States that is very alarming. The dramatic increase in numbers who are unable to pay their debts in time. By knowing the law and your options will quickly help you decide which is the most appropriate Bankruptcy Type one for you.
Below are the four types of bankruptcy cases:
- Chapter 7– known as straight bankruptcy or liquidation. It requires the debtor to give up their property to pay creditors. It may be the quickest type of bankruptcy that can consider by couples, partnerships or corporations. They have to undergo several questions that need to answer first and done with the help of IRS who will decide if a person can or can’t file.
- Chapter 11– is mostly for business owners who wanted to continue operations but he needs Emergency Bankruptcy Filing whether it’s a corporation, partnership or a sole ownership. But it may require a reorganization of the business assets or debts. And they must come up with a plan to pay the debts and must be confirmed, or it may lead to a liquidation under Chapter 7.
- Chapter 12– is reserved for family farmers or fisherman’s with regular annual income and this bankruptcy act has no special provision. It allows them to have a plan to repay all or parts of their debts.
- Chapter 13– is also known as the wage earner’s plan. It allows an individual that has a regular income to have a negotiated term or an installment plan to his creditors in over three to five years without penalties. It Includes child support payments and back taxes. Most people opt to Chapter 13 if they want to keep their assets like their home or vehicle compared to the Bankruptcy Chapter 7 in California where liquidation of assets is the option to pay for debts.