If you ever find yourself deeply in debt, you should take your time to ponder over the options at your disposal. You can seek debt counseling and consolidate your debt. If this does not work, however, you will have to file for bankruptcy. While this may not be the best option, it may be the only one you can use to get rid of your debt. A chapter 7 Oakland CA residents should know, is a type of bankruptcy that provides for liquidation of assets to offset the debts owed by the debtor.
There are two bankruptcy chapters that consumers can file whenever they experience financial hardships. These are chapters 7 and 13. While the former provides for auctioning of assets to pay off debts, the latter provides for restructuring of debts. Choosing the right type of bankruptcy will determine how well you get out of the debt situation.
Only adults with personal debts exceeding a certain amount qualify for this bankruptcy option. The debtor must also have an unreliable, or low, income. The trustee will check all these to ensure that applicants qualify for the chapter they are applying for.
The first thing the court will do is appoint a competent trustee to oversee the process. The trustee will start by accounting for all eligible assets and qualifying debts. The next step will be to set a date for the auction. After collecting the proceeds of the auction, the trustee will distribute the proceeds to creditors.
It is important to note that the funds recovered from liquidating assets does not have to be enough to settle the outstanding debts. The funds could be only a tenth or a quarter of your outstanding debts, but your debts will be forgiven once the funds have been distributed to all the creditors.
Debts are normally prioritized during a chapter 7 bankruptcy. For instance, court fees and taxes are usually given priority and must be settled in full. What remains from the proceeds of the liquidation process is usually distributed to creditors based on their fraction of the total debt you owe them. The trustee must make sure the law is adhered to.
All bankruptcy options come with a number of shortcomings or negative effects that consumers should be aware of before they file the necessary paperwork. One of those adverse effects is damage to your credit rating. Since the bankruptcy will appear on you credit report for many years, you will not be able to access affordable loans or rent a decent house. Renting a car or getting a decent-paying job will also be difficult. Unfortunately, the bankruptcy entry will appear on you credit report for a number of years, so it can change your life significantly.
Hiring a bankruptcy lawyer is recommended when you want to seek bankruptcy protections. This is because the trustee may overlook some of your rights, so your attorney will ensure that your rights are upheld. The lawyer will also advise you accordingly throughout the process. A key factor to consider during the search for a suitable lawyer is experience. Reputation in the industry is also a key factor of consideration.
There are two bankruptcy chapters that consumers can file whenever they experience financial hardships. These are chapters 7 and 13. While the former provides for auctioning of assets to pay off debts, the latter provides for restructuring of debts. Choosing the right type of bankruptcy will determine how well you get out of the debt situation.
Only adults with personal debts exceeding a certain amount qualify for this bankruptcy option. The debtor must also have an unreliable, or low, income. The trustee will check all these to ensure that applicants qualify for the chapter they are applying for.
The first thing the court will do is appoint a competent trustee to oversee the process. The trustee will start by accounting for all eligible assets and qualifying debts. The next step will be to set a date for the auction. After collecting the proceeds of the auction, the trustee will distribute the proceeds to creditors.
It is important to note that the funds recovered from liquidating assets does not have to be enough to settle the outstanding debts. The funds could be only a tenth or a quarter of your outstanding debts, but your debts will be forgiven once the funds have been distributed to all the creditors.
Debts are normally prioritized during a chapter 7 bankruptcy. For instance, court fees and taxes are usually given priority and must be settled in full. What remains from the proceeds of the liquidation process is usually distributed to creditors based on their fraction of the total debt you owe them. The trustee must make sure the law is adhered to.
All bankruptcy options come with a number of shortcomings or negative effects that consumers should be aware of before they file the necessary paperwork. One of those adverse effects is damage to your credit rating. Since the bankruptcy will appear on you credit report for many years, you will not be able to access affordable loans or rent a decent house. Renting a car or getting a decent-paying job will also be difficult. Unfortunately, the bankruptcy entry will appear on you credit report for a number of years, so it can change your life significantly.
Hiring a bankruptcy lawyer is recommended when you want to seek bankruptcy protections. This is because the trustee may overlook some of your rights, so your attorney will ensure that your rights are upheld. The lawyer will also advise you accordingly throughout the process. A key factor to consider during the search for a suitable lawyer is experience. Reputation in the industry is also a key factor of consideration.
About the Author:
When you are searching for information about Chapter 7 Oakland residents can come to our web pages online today. More details are available at http://centralcoastbankruptcy.com/chapter-7.html now.
No comments:
Post a Comment