San Bernardino Bankruptcy Basics

Types of bankruptcies vary, but most fall into two broad categories - liquidation and repayment. The two most common types of bankruptcy, namely Chapter 7 and Chapter 13, are prime examples of these two types of bankruptcy. There are also bankruptcies which are tailored to businesses, farms, and even municipalities, but they all fall under the liquidation or repayment types.

Chapter 7 bankruptcy is considered to be a liquidation bankruptcy. This means that your nonexempt assets are sold in order to pay off as many of your creditors as possible. You don't have to pay off all of your creditors in this fashion - in fact, depending upon your circumstances, you may not have to pay off any of your creditors at all.

Chapter 13 bankruptcy, by contrast, is comprised mainly of a court-enforced repayment plan designed to let you get caught up on certain priority debts while paying down other debts as well, if at all possible. At the end of your repayment term, which can range anywhere from 3 to 5 years, your non-priority debts will be discharged, and you will be free of any remaining balances owed on those debts. Chapter 13 bankruptcy is a good choice for those individuals who do not want to run the risk of losing certain assets, and whose income allows them to make regular payments.

Chapter 12 bankruptcy, also known as Family Farmer Bankruptcy, is a repayment plan much like Chapter 13, only for individuals whose business is a family farm or fishery. For municipalities, A Chapter 9 bankruptcy may provide similar relief. Of course, if you own a business and will not be able to keep to payment arrangements with your creditors, a Chapter 7 bankruptcy may be best for you.

With so many options for filing for bankruptcy, it's urgent that you speak with a qualified San Bernardino County Bankruptcy Attorney as soon as possible when you are deciding whether or not to file. Our  San Bernardino County Bankruptcy Law Firm can help you to decide which type of bankruptcy best suits your purpose. If you are in the unique position of potentially qualifying for more than one type of bankruptcy, we will walk you through the process of deciding which type of bankruptcy is best for you. We have the skills, experience, and dedication necessary to see you through even the most complex San Bernardino Bankruptcy case.

When you contact us, we will arrange for a free initial case evaluation that takes your circumstances into consideration. You will be free to ask questions, get clarification, and gain a full understanding of exactly what bankruptcy can and cannot do for you in terms of stopping creditors in situations such as repossession and levies. We can also offer solid legal advice about what type of bankruptcy is most likely to benefit your circumstances. Get in touch with us today and find out just how easy financial relief can be when you file for bankruptcy protection. 

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