Understanding the basics of bankruptcy, Cathedral City, CA

There are lots of information about bankruptcy, Cathedral City, CA that you can find on the internet; however, some of them are not quite correct. Make sure that you counter check the information you stumble upon with the resources provided by the federal government through their official websites.

There may come a time in your life that you are going to make the decision about whether to file bankruptcy or not, thus, it makes sense to get a good grasp on this matter as early as now. With that said, here are the basics about bankruptcy, Cathedral City, CA that you should know:

  • Bankruptcy has been designed to help people who can no longer pay their debts get a new beginning, and that is by liquidating their assets to pay their debts or by establishing a repayment plan
  • Bankruptcy laws is also aimed to provide protection for financially troubled businesses.
  • All bankruptcy cases are filed and handled in federal courts under rules outlined in the U.S. Bankruptcy Code
  • There are various types of bankruptcies, each of them is meant for specific purpose: Individuals may file under Chapter 7 or Chapter 13 bankruptcy (depending on the specifics of their situation); Businesses may file under Chapter 7 (to liquidate) or Chapter 11 (to reorganize); Municipalities (e.g. cities, towns, villages, taxing districts, school districts) may file under Chapter 9 to reorganize; Chapter 12 bankruptcy is aimed to give debt relief for family farmers and fishermen; and the Chapter 15 bankruptcy is designed for filings that include parties from more than one country
  • As of July 2017, there were a total of 796,037 filings for bankruptcy; 97% of the these filings were non-business
  • A person can file bankruptcy without a lawyer (this is called filing pro se); however, it is recommended to seek advice from a qualified lawyer as bankruptcy has long-term financial and legal consequences

Seek advice from a lawyer who is an expert about bankruptcy, Cathedral City, CA, here at the Ficara Law Office.

Call today for inquiries at (760) 365-7000

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