When you have a lot of unmanageable debt, it is important you take your time to look for a competent lawyer who can advise you accordingly on how to get rid of your debt through this option. Getting legal counsel is crucial because there are far-reaching consequences of becoming bankrupt. However, there are also many benefits of filing for bankruptcy CA.
The key benefit of filing for bankruptcy is that much of your debt will be written off once you have satisfied all the minimum requirements. Secondly, you will get peace of mind as creditors will stop harassing you. These two benefits are able to convince any consumer to use bankruptcy to settle their debts regardless of the negative consequences.
It is interesting to note that there are several debts that can never be written off through bankruptcy. The first is student loans. The second is child support and alimony. Taxes and court fees must also be paid. If you have these debts, you should know that you will still be required to service them even after becoming bankrupt.
The number of years an attorney has been in business should be checked. This is because you want to hire the most experienced lawyer you can find. Experienced attorneys know how to deal with different types of challenges that may arise during the proceedings. Therefore, they can offer greater value for money.
Chapter 7 was designed for debtors, both individual and institutional, that do not have an income source. Their assets are normally sold to pay off their debts. The proceeds of the auction do not matter as whatever will be recovered will be used to settle the debts of the debtor. A few thousand dollars can be used to settle a debt of hundreds of thousands.
Anyone who has a decent job, but is not able to service their debts properly due to high monthly payments can file for chapter 13. This chapter allows the debtor to make regular monthly payments to the trustee for several years. After that, all their unpaid debts will be forgiven.
Corporate debtors, such as companies, businesses and other types of institutions can use chapter 11, which is simply debt restructuring, or chapter 7, which can be looked at as liquidation. The latter is one for business or corporate debtors without a source of income. The former, on the other hand, is meant for organizations with a decent revenue stream. Be sure to choose the right option when seeking legal protections.
Once you file for bankruptcy, you should know that your credit report will show that you are bankrupt. That is why you should consider this as an option of last resort. A negative listing will make it impossible for you to get affordable loans, rent a car or house, or even prevent you from getting a promotion or a better job.
The key benefit of filing for bankruptcy is that much of your debt will be written off once you have satisfied all the minimum requirements. Secondly, you will get peace of mind as creditors will stop harassing you. These two benefits are able to convince any consumer to use bankruptcy to settle their debts regardless of the negative consequences.
It is interesting to note that there are several debts that can never be written off through bankruptcy. The first is student loans. The second is child support and alimony. Taxes and court fees must also be paid. If you have these debts, you should know that you will still be required to service them even after becoming bankrupt.
The number of years an attorney has been in business should be checked. This is because you want to hire the most experienced lawyer you can find. Experienced attorneys know how to deal with different types of challenges that may arise during the proceedings. Therefore, they can offer greater value for money.
Chapter 7 was designed for debtors, both individual and institutional, that do not have an income source. Their assets are normally sold to pay off their debts. The proceeds of the auction do not matter as whatever will be recovered will be used to settle the debts of the debtor. A few thousand dollars can be used to settle a debt of hundreds of thousands.
Anyone who has a decent job, but is not able to service their debts properly due to high monthly payments can file for chapter 13. This chapter allows the debtor to make regular monthly payments to the trustee for several years. After that, all their unpaid debts will be forgiven.
Corporate debtors, such as companies, businesses and other types of institutions can use chapter 11, which is simply debt restructuring, or chapter 7, which can be looked at as liquidation. The latter is one for business or corporate debtors without a source of income. The former, on the other hand, is meant for organizations with a decent revenue stream. Be sure to choose the right option when seeking legal protections.
Once you file for bankruptcy, you should know that your credit report will show that you are bankrupt. That is why you should consider this as an option of last resort. A negative listing will make it impossible for you to get affordable loans, rent a car or house, or even prevent you from getting a promotion or a better job.
About the Author:
Find a summary of the benefits of consulting a bankruptcy CA attorney and more info about a knowledgeable lawyer at http://www.centralcoastbankruptcy.com now.
No comments:
Post a Comment