Filing Bankruptcy in Moreno Valley: What to Expect

If you live in Moreno Valley, your bankruptcy case is filed in the Riverside Division of the United States Bankruptcy Court for the Central District of California. Most consumer cases are Chapter 7 or Chapter 13, and which one you qualify for depends mainly on your household income measured against the California median.

Chapter 7 or Chapter 13?

Chapter 7 discharges most unsecured debt — credit cards, medical bills, personal loans, most judgments — usually within a few months. You keep property that falls within California’s exemptions, which for most working households covers the car, household goods, tools of the trade and a substantial amount of home equity.

Chapter 13 is a three-to-five-year repayment plan. It exists for people who earn too much to pass the means test, or who need something Chapter 7 cannot give them — most often the ability to cure mortgage arrears and save a house without the lender’s agreement.

The sequence, start to finish

1. Credit counseling. A short approved course, completed before filing.
2. Document gathering. Six months of pay stubs, two years of tax returns, bank statements, a full creditor list, and deeds or titles.
3. The means test. Compares your household income to the California median for your family size.
4. Filing. The petition and schedules are filed. The automatic stay takes effect immediately — wage garnishments stop, collection calls stop, and a scheduled foreclosure sale is halted.
5. 341 meeting of creditors. You meet the trustee and answer questions under oath. It is usually short, and creditors rarely attend.
6. Debtor education course. A second required course, after filing.
7. Discharge. The court order wiping out qualifying debt.

The automatic stay is the part that helps immediately

People usually come in because of one specific pressure: a garnishment that has started, a bank levy, or a sale date on the house. The automatic stay addresses all three the moment the case is filed. If you are being garnished, the date you file determines which paychecks you keep.

What bankruptcy will not do

Child and spousal support survive. Most recent taxes survive, though older income taxes can sometimes be discharged. Student loans survive absent a separate showing. Debts from fraud can be challenged. An honest assessment on the first call is worth more than an optimistic one.

Speak to the Moreno Valley office

Hedtke Law Group has an office in Moreno Valley serving Moreno Valley, Riverside, Woodcrest, Mead Valley and Redlands.

Hedtke Law APC — Moreno Valley
24384 Sunnymead Blvd, Suite 140, Moreno Valley, CA 92553
Phone: (951) 746-1722
Website: bankruptcymorenovalley.net

In the Inland Empire’s western end instead? Our Fontana bankruptcy attorney office serves Fontana, Rialto, Colton, Bloomington and Jurupa Valley.