Thursday 22 February 2018

Filing A Chapter 13 Oakland CA

By Carolyn Mitchell


When you have accumulated a lot of personal debt, paying it off will become next to impossible. This is because your income may not be enough to cover the monthly payments. Furthermore, the interest accruing may be much more than the monthly payments you make. Your best option would be to file a chapter 13 Oakland to get rid of the debt.

While there may be many different types of bankruptcies, this option is probably the most convenient for individual debtors. For one, it allows the debtor to get debt forgiveness for huge amounts of debt by making regular monthly payments. This means that the debtor must have a reliable source of income to qualify for this option.

One of the key benefits of this bankruptcy chapter is convenience as it allows debtors to pay off their bad debts with small monthly installments. Secondly, it allows consumers to retain all their assets. This is because there is usually no liquidation of property to pay off their debts. Instead, the debtor is only required to make convenient monthly installments throughout the bankruptcy period so as to be discharged of all the unpaid debts. This option allows the debtor to continue enjoying the quality of life they are used to.

Before a debtor can be declared bankruptcy, they must first draft a plan of how they plan to repay their debts. To come up with a figure, the debtor will need to highlight their total monthly income and subtract their total living expenses and other essential expenses. What is left behind is what will be used to settle their debts.

Bankruptcy comes with a number of disadvantages or drawbacks. While it may have several benefits, consumers should also keep the negatives in mind during the decision-making process. For instance, they should know that failure to honor the terms and conditions will lead to a chapter 7 bankruptcy. This means that the trustee will start the process of liquidating the assets of the debtor.

It is always a good idea to get advice from a competent attorney whenever you want to use legal options to get rid of your debt. For this reason, you should hire a bankruptcy attorney to give you advice and guide you through the process. There are many attorneys in the industry, so you need to search for the best one based on experience, reputation, cost, availability and success rate among other things.

When you become bankrupt, you should know that your credit will take a hit. For starters, you will be listed, which means that you will not be able to qualify for any affordable loan. Furthermore, you may not be able to get a decent job, rent a decent house or rent a car. This is because nobody will trust you with their assets or money after you become bankrupt.

Some people have a misconception that bankruptcy will get rid of all their debts. The truth, however, is that there are certain debts that cannot be forgiven through bankruptcy. For instance, child support, student loans and spousal support must be paid no matter what. If these debt obligations account for a significant chunk of your debt, therefore, bankruptcy may not be a great option.




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