Sunday 27 May 2018

When To File For Bankruptcy Santa Cruz

By Paul Cooper


If you are a distressed consumer, it is important you explore all your options for debt settlement. While bankruptcy may be the last option that you should consider, it is one of the best options for resolving debt problems. This is because you will get debt forgiveness as well as protection from your creditors. This will give you peace of mind. To ensure you get everything right, be sure to hire a lawyer who specializes in bankruptcy Santa Cruz CA.

There are many bankruptcy lawyers that you can consider hiring. Since they are not all the same, you will need to carry out some research to identify the best lawyer for your needs. The ideal lawyer should be able to help you with the paperwork and offer guidance throughout the process. When needed, the lawyer will represent you during the proceedings.

There are three types of bankruptcies. These are chapter 7, chapter 11 and chapter 13. Each of these chapters has been designed with a different type of debtor in mind. To get debt forgiveness and protection from creditors, therefore, you have to take your time to look at the pros and cons of different chapters and choose the right one for your needs.

If you are an individual debtor, there are two options that you can consider. For starters, you can seek to be declared bankrupt under chapter 7, in which case your assets will be sold to pay off your debts. Alternatively, you can seek to become bankrupt through chapter 13, in which case you will be asked to draft a plan on how you are going to pay part of your debt with regular monthly installments.

Corporate debtors, businesses or any legal entity with a lot of debt can use either chapter 7 or chapter 11 to get rid of their debt. Chapter 7 provides for liquidation of property owned by the debtor while chapter 11 provides for restructuring of debt. If you are a corporate debtor, you can only qualify for chapter 11 if you have a reliable income source.

There are several major benefits of using bankruptcy chapters to deal with your debt problems. The first is that most of your debts will be written off. Secondly, the courts will prevent all your creditors from communicating with you directly. Any communication must go through the trustee. This means that you will be able to get peace of mind.

Getting protection from your creditors is one of the main goals of becoming bankrupt. Another goal is having your debts written off. However, you should know that there are several disadvantages of becoming bankrupt. For instance, you will be blacklisted by creditors, and this will make it almost impossible for you to get access to affordable credit from mainstream lenders.

There are certain jobs that you cannot get if you are bankrupt. Similarly, there are some rental properties that you cannot rent if you are bankrupt. Since most car rental companies nowadays run credit checks on potential clients, you may also not be able to rent a car. As you can see, bankruptcy can turn your life upside down. After weighing all the pros and cons of bankruptcy with the help of a lawyer, you will be able to make an informed decision.




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