San Francisco Bankruptcy Laws

Deciding you need to seek a San Francisco, California bankruptcy is hard enough. When you throw in all the complicated legal jargon and different bankruptcy claims, it gets even more difficult to take in. Of course a San Francisco based bankruptcy attorney can help make sense of all the bankruptcy laws, but it's nice to have some idea of your options before taking the trip to the bankruptcy law office. There are tons of resources in the library, on helpful websites, and through consumer credit agencies as well, but in the meantime, here is a quick look at the most commonly used San Francisco bankruptcy plans.

• chapter 7 bankruptcy
• chapter 13 bankruptcy
• chapter 11 bankruptcy

According the San Francisco bankruptcy laws, Chapter 7 bankruptcy is the process of liquidating all or most of the applicant's assets to pay off preexisting debts. While it does give the person a clean slate in terms of bills owed, it leaves little to build a new life on. Like all of the California bankruptcy law options, there are certain requirements a person must meet before being eligible for this type of assistance. With the Chapter 7 bankruptcy plan, if married, the petitioner's spouse must be included in the hearing even if he or she is not part of the bankruptcy.

Many people prefer Chapter 13 bankruptcy in San Francisco as opposed to Chapter 7. This form of bankruptcy is known as a reconsolidation bankruptcy. Instead of liquidating assets, this one reorganizes debt and allows for realistic repayment of the debts. Once the hearing is over the debtor will make a prearranged payment of a specific amount to the trustee. From there the trustee makes payments to the collective creditors. Several factors are considered with a Chapter 13 bankruptcy including the debtor's needs to live, the amount of the owed bills, and disposable property. This type of San Francisco bankruptcy can actually stop foreclosure on homes and stop harassing calls.

Under San Francisco bankruptcy laws, a Chapter 11 bankruptcy is similar to a Chapter 13 in that it allows for possessions to be kept. The biggest difference is that Chapter 11 bankruptcy plans are for business. Like the others, this reorganization bankruptcy has requirements that must be met and allows the business to continue to operate for the best interest of all involved.