Understanding Bankruptcy in Riverside: An Overview

At Reid & Hellyer, we understand that facing financial hardship can be overwhelming. With our extensive experience in bankruptcy law, we aim to demystify the process and provide guidance to those in Riverside, California, who are considering bankruptcy as a path to financial relief.

What Is Bankruptcy?

Bankruptcy is a legal procedure for individuals and businesses unable to repay their debts. It offers a fresh start by either liquidating assets to pay debts (Chapter 7) or creating repayment plans (Chapter 11 and Chapter 13). The U.S. Courts provide a comprehensive overview of bankruptcy and its purposes.

Types of Bankruptcy: Finding Your Fit

There are three primary types of bankruptcy filings:

  1. Chapter 7 Bankruptcy: Known as ‘liquidation’ bankruptcy, Chapter 7 is suitable for those with limited income who cannot pay back their debts. The California Courts website offers more details on eligibility and process.
  2. Chapter 11 Bankruptcy: This type is primarily for businesses, allowing them to continue operating while they restructure their debts. The Small Business Administration (SBA) provides resources for small businesses considering Chapter 11.
  3. Chapter 13 Bankruptcy: Ideal for individuals with a regular income, Chapter 13 involves a repayment plan to settle debts over time. The Federal Trade Commission offers insights into this option.

Qualifying for Bankruptcy in California

To file for Chapter 7, you must pass a ‘means test,’ comparing your income to the state median. The Means Test Calculator by the U.S. Department of Justice can help determine eligibility.

The Bankruptcy Process: A Step-by-Step Guide

The bankruptcy process involves:

  1. Initial Consultation: We start with a comprehensive review of your financial situation.
  2. Filing the Petition: Filing with the bankruptcy court is the formal step to initiate your bankruptcy case.
  3. Automatic Stay: This immediate effect halts most collection activities, as explained by the Consumer Financial Protection Bureau.
  4. Meeting of Creditors: This meeting allows creditors to ask questions about your bankruptcy filing.
  5. Discharge: The successful conclusion of a bankruptcy case, where most debts are forgiven.

Life After Bankruptcy

Emerging from bankruptcy offers a chance to rebuild your financial life. The Federal Reserve’s guide to improving credit scores is a valuable resource for those in this phase.

Conclusion: Your Partner in Financial Recovery

At Reid & Hellyer, we believe in providing a beacon of hope and clarity in challenging times. Bankruptcy is not just an end – it’s a new beginning. If you’re in Riverside and considering bankruptcy, let us help you navigate this journey toward financial freedom. Contact us today for a personalized consultation and take that crucial step towards a brighter financial future.


The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Reid & Hellyer, APC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.