There are many reasons why a person may want to become bankrupt. For starters, they may want to get the protection of the court from creditors. Secondly, they may need a legal solution to their debt problem. In care of foreclosure, someone can file for bankruptcy to stop the foreclosure process. Whatever the reason, it is always recommended you hire a competent lawyer to help you out with bankruptcy CA.
You can become bankrupt either voluntarily or involuntarily. If you are seeking the protection of the court, you can decide to become bankrupt voluntarily. However, creditors can decide to ask the court to declare you bankrupt to initiate debt recovery processes. This means that you will become bankrupt involuntarily.
The best option for individual debtors to get legal protections from creditors is chapter 13. To become bankrupt under this chapter, you must have a reliable income. You must also have unsecured personal debts exceeding the legal thresholds. Once you have been declared bankrupt, you will be expected to make monthly payments to the trustee without failing.
The default bankruptcy option is chapter 7. This is because both individuals and businesses can qualify. In addition to that, any bankrupt debtor, under chapter 11 or 13, that defaults on the payment plan can be declared bankrupt under this chapter. This will allow the trustee to start liquidating their assets to recover funds to pay off their debts. To avoid chapter 7, you will have to honor the terms and conditions of your repayment plan.
The most competent lawyers are usually those that have a lot of industry experience. For this reason, you need to start by creating a shortlist of lawyers that have been in the industry for many years and have handled dozens of similar cases. This will help to ensure you get quality services.
In case you have a lot of bad business debts, you should consider having your business declared bankrupt under chapter 11. This option is only meant for businesses, so individual debtors cannot qualify. Only businesses with a reliable income source can qualify. After becoming bankrupt, the business will be managed under the supervision of the court-appointed trustee.
It is important to note that once you have become bankrupt, you will not be able to borrow any loans for some time. This is because most lenders will refuse to approve your loan application on the account that you have a tainted history. Firms that may be willing to lend you money, on the other hand, will quote higher rates of interest and unfavorable terms. Getting a better job or renting a business premise or home will also become extremely challenging.
Bankruptcy is always an option of last resort. When you find yourself in financial problems, be sure to consider debt consolidation and debt refinancing before you think about becoming bankrupt. These are better options for getting rid of your debts. However, they can only work if the debts you have are sustainable.
You can become bankrupt either voluntarily or involuntarily. If you are seeking the protection of the court, you can decide to become bankrupt voluntarily. However, creditors can decide to ask the court to declare you bankrupt to initiate debt recovery processes. This means that you will become bankrupt involuntarily.
The best option for individual debtors to get legal protections from creditors is chapter 13. To become bankrupt under this chapter, you must have a reliable income. You must also have unsecured personal debts exceeding the legal thresholds. Once you have been declared bankrupt, you will be expected to make monthly payments to the trustee without failing.
The default bankruptcy option is chapter 7. This is because both individuals and businesses can qualify. In addition to that, any bankrupt debtor, under chapter 11 or 13, that defaults on the payment plan can be declared bankrupt under this chapter. This will allow the trustee to start liquidating their assets to recover funds to pay off their debts. To avoid chapter 7, you will have to honor the terms and conditions of your repayment plan.
The most competent lawyers are usually those that have a lot of industry experience. For this reason, you need to start by creating a shortlist of lawyers that have been in the industry for many years and have handled dozens of similar cases. This will help to ensure you get quality services.
In case you have a lot of bad business debts, you should consider having your business declared bankrupt under chapter 11. This option is only meant for businesses, so individual debtors cannot qualify. Only businesses with a reliable income source can qualify. After becoming bankrupt, the business will be managed under the supervision of the court-appointed trustee.
It is important to note that once you have become bankrupt, you will not be able to borrow any loans for some time. This is because most lenders will refuse to approve your loan application on the account that you have a tainted history. Firms that may be willing to lend you money, on the other hand, will quote higher rates of interest and unfavorable terms. Getting a better job or renting a business premise or home will also become extremely challenging.
Bankruptcy is always an option of last resort. When you find yourself in financial problems, be sure to consider debt consolidation and debt refinancing before you think about becoming bankrupt. These are better options for getting rid of your debts. However, they can only work if the debts you have are sustainable.
About the Author:
Find an overview of the advantages you get when you consult a bankruptcy CA lawyer and more information about an experienced attorney at http://www.centralcoastbankruptcy.com now.
No comments:
Post a Comment