Consumers can easily fall into a cycle of debt that is hard to get out of. Having several debt obligations, such as credit card debts, personal loans, a mortgage, large car loan and student loans can weigh you down. If you find yourself unable to service your debts accordingly, you will need to hire a competent lawyer to help you file a bankruptcy petition in court. A chapter 7 Oakland residents should know, can help them get debt forgiveness.
This bankruptcy chapter provides for liquidation of valuables and property owned by the debtor. After the liquidation, the proceeds are distributed among all the creditors based on their fraction of the total debt. After the process, the debtor is forgiven of all unpaid debts.
It is important to note that both corporates and individual debtors can file for bankruptcy under this chapter. The lack of income is perhaps the only requirement that debtors need to fulfill. Please note that the assets of the debtor, no matter the value, is what will be auctioned off to pay their debts.
This is the easiest type of bankruptcy to qualify for, which makes it the most popular. As is the case with other bankruptcy chapters, this option will still taint your credit history. This is because the bankruptcy entry will be added to your credit history. This will prevent you from getting a decent job, affordable loans or renting a house/car. As a result, your life will be adversely affected.
When you are declared bankrupt under a different bankruptcy provision, such as chapters 13 or 11, you have to honor the terms and conditions of that bankruptcy option. If not, your assets will be liquidated under this bankruptcy chapter. After all, chapter 7 is considered the default type of bankruptcy.
After the court receives the petition, a trustee will be appointed to represent the court and oversee the process. After the appointment, the trustee will start adding up your debts, assets and liabilities. All non-exempt assets will be valued and preparations made for the auction. After liquidation of these items, the funds will be distributed proportionately among your creditors.
While the trustee may be a neutral party, they can commit illegalities, such as selling items that are exempt by state or federal bankruptcy exemptions. To ensure that these assets are not touched, you should have your attorney by your side. The best thing about hiring a competent lawyer is that they can negotiate with the trustee to ensure that any non-exempt item with little monetary value does not get auctioned off.
When searching for a suitable attorney, the key factor of consideration is experience. You want to be represented by the most experienced attorney you can find. The ideal attorney should also have a great reputation in the industry and charge competitive rates for their services. Be sure to start your search with a shortlist of the top-rated lawyers operating in the city. You can easily narrow down the search by comparing these attorneys to identify the best one for your needs.
This bankruptcy chapter provides for liquidation of valuables and property owned by the debtor. After the liquidation, the proceeds are distributed among all the creditors based on their fraction of the total debt. After the process, the debtor is forgiven of all unpaid debts.
It is important to note that both corporates and individual debtors can file for bankruptcy under this chapter. The lack of income is perhaps the only requirement that debtors need to fulfill. Please note that the assets of the debtor, no matter the value, is what will be auctioned off to pay their debts.
This is the easiest type of bankruptcy to qualify for, which makes it the most popular. As is the case with other bankruptcy chapters, this option will still taint your credit history. This is because the bankruptcy entry will be added to your credit history. This will prevent you from getting a decent job, affordable loans or renting a house/car. As a result, your life will be adversely affected.
When you are declared bankrupt under a different bankruptcy provision, such as chapters 13 or 11, you have to honor the terms and conditions of that bankruptcy option. If not, your assets will be liquidated under this bankruptcy chapter. After all, chapter 7 is considered the default type of bankruptcy.
After the court receives the petition, a trustee will be appointed to represent the court and oversee the process. After the appointment, the trustee will start adding up your debts, assets and liabilities. All non-exempt assets will be valued and preparations made for the auction. After liquidation of these items, the funds will be distributed proportionately among your creditors.
While the trustee may be a neutral party, they can commit illegalities, such as selling items that are exempt by state or federal bankruptcy exemptions. To ensure that these assets are not touched, you should have your attorney by your side. The best thing about hiring a competent lawyer is that they can negotiate with the trustee to ensure that any non-exempt item with little monetary value does not get auctioned off.
When searching for a suitable attorney, the key factor of consideration is experience. You want to be represented by the most experienced attorney you can find. The ideal attorney should also have a great reputation in the industry and charge competitive rates for their services. Be sure to start your search with a shortlist of the top-rated lawyers operating in the city. You can easily narrow down the search by comparing these attorneys to identify the best one for your needs.
About the Author:
Find an overview of the benefits of consulting a Chapter 7 Oakland attorney and more info about a well-respected lawyer at http://www.centralcoastbankruptcy.com/chapter-7.html today.
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