Bankruptcy is a legal debt resolution option that is provided for under the Federal Bankruptcy Act. There are also provisions in state law governing how bankruptcy cases are implemented. When you have a lot of unmanageable debt and would like to get legal protections from creditors, all you need to do is file for bankruptcy. A chapter 13 Oakland residents should know, is a personal bankruptcy.
Consumers have access to a number of bankruptcy chapters. However, chapter 13 bankruptcy is the most popular. This is because it is considered more convenient or less punitive. This is because the debtor does not lose any assets. Instead of liquidation, the debtor is only required to make convenient monthly payments for a number of years.
Hiring a competent bankruptcy lawyer is necessary when you want to seek bankruptcy protections. Therefore, you should take your time to identify a competent lawyer to help you out. The attorney will tell you everything about the pros and cons of this bankruptcy option.
With this bankruptcy option, you will be required to propose a repayment plan that is convenient for you and based on your average monthly income. Once the plan is approved by the court, you will be required to send the monthly payments to the trustee who will distribute the money among all your creditors.
Some debts can never be written off through bankruptcy. For instance, child support, taxes, spousal support and student loans are never subjected to bankrupt proceedings. Therefore, you will have to pay these debts separately even as you seek to settle your debts through bankruptcy. Be sure to keep this in mind when filing the necessary paperwork.
The main advantage of this bankruptcy option over chapter 7 is that your assets will not be touched as your debts will be settled through a convenient repayment plan. This means that you can avoid the embarrassment of having your personal belongings auctioned to get funds to settle your debts. It is also much more confidential as you can get rid of your debts without everyone knowing about your financial situation.
While bankruptcy can protect the debtor from being harassed by creditors as well as freeze any more interest and penalties from accruing, there are some drawbacks. First, you will be listed as a bankrupt consumer and a defaulter. This will make it hard for you to qualify for low interest loans, high paying jobs and renting anything. After all, most firms nowadays run credit checks on potential employees, tenants, renters and borrowers.
Defaulting on the terms and conditions of a chapter 13 bankruptcy has serious legal implications. First, the trustee will be forced to liquidate your assets promptly to pay off your debts. This will defeat the purpose of seeking debt restructuring, so you should be serious about paying off your debts. If you know you may not be able to meet the strict conditions of this option, you may want to consider filing a chapter 7, which will allow you to start life afresh without wasting any time.
Consumers have access to a number of bankruptcy chapters. However, chapter 13 bankruptcy is the most popular. This is because it is considered more convenient or less punitive. This is because the debtor does not lose any assets. Instead of liquidation, the debtor is only required to make convenient monthly payments for a number of years.
Hiring a competent bankruptcy lawyer is necessary when you want to seek bankruptcy protections. Therefore, you should take your time to identify a competent lawyer to help you out. The attorney will tell you everything about the pros and cons of this bankruptcy option.
With this bankruptcy option, you will be required to propose a repayment plan that is convenient for you and based on your average monthly income. Once the plan is approved by the court, you will be required to send the monthly payments to the trustee who will distribute the money among all your creditors.
Some debts can never be written off through bankruptcy. For instance, child support, taxes, spousal support and student loans are never subjected to bankrupt proceedings. Therefore, you will have to pay these debts separately even as you seek to settle your debts through bankruptcy. Be sure to keep this in mind when filing the necessary paperwork.
The main advantage of this bankruptcy option over chapter 7 is that your assets will not be touched as your debts will be settled through a convenient repayment plan. This means that you can avoid the embarrassment of having your personal belongings auctioned to get funds to settle your debts. It is also much more confidential as you can get rid of your debts without everyone knowing about your financial situation.
While bankruptcy can protect the debtor from being harassed by creditors as well as freeze any more interest and penalties from accruing, there are some drawbacks. First, you will be listed as a bankrupt consumer and a defaulter. This will make it hard for you to qualify for low interest loans, high paying jobs and renting anything. After all, most firms nowadays run credit checks on potential employees, tenants, renters and borrowers.
Defaulting on the terms and conditions of a chapter 13 bankruptcy has serious legal implications. First, the trustee will be forced to liquidate your assets promptly to pay off your debts. This will defeat the purpose of seeking debt restructuring, so you should be serious about paying off your debts. If you know you may not be able to meet the strict conditions of this option, you may want to consider filing a chapter 7, which will allow you to start life afresh without wasting any time.
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