There are many legal options that can help consumers when it comes to dealing with their bad debts. The Bankruptcy Act, for instance, has several chapters that can help different types of debtors. However, debtors should never rush their decision to become bankrupt because there are both pros and cons that they need to be aware of first before making a decision. Read on to learn about bankruptcy Oakland.
One of the most common options for businesses and individual debtors is chapter 7. To qualify for this option, there is only one requirement that debtors will be required to satisfy. You must prove that you do not have a reliable income to be able to service your debts. Usually, assets belonging to the debtor are liquidated to offset their credit accounts. The liquidation is usually done through a public auction, which can be embarrassing for the debtor and their family.
Chapter 11 is an option that has been designed specifically for businesses. With this chapter, a business or company only needs to show that they have a lot of bad debt and a reliable income source they can use to service their debt under improved terms and conditions. If approved, the management of the business will have to come up with a payment plan based on their disposable income. After a few years, all unpaid debts will be forgiven.
Chapter 13 was designed specifically for individual consumers. It basically entails debt reorganization. You will be asked to come up with a payment plan to service your debts. If the plan is approved, you will get a chance to retain all your assets as you continue to make small monthly payments to offset a portion of your debts. It is important to note that if you default on this plan, your assets will be liquidated under chapter 7.
It is always a good idea to work with a competent lawyer throughout the entire process. This is crucial because you need legal jargon defined. You will also need advice throughout the process. Obviously, you will need help with the paperwork. That is why you should hire a competent lawyer to help you out.
Once you have become bankrupt, you can expect a number of changes to occur in your life. For starters, you will not be able to qualify for cheap credit. You will also not be able to get a better job, rent a house or car. Your reputation may also be tainted significantly.
If you have spousal support payments, child support, overdue taxes and student loans, you should know that you cannot have these debts forgiven through bankruptcy. This is because the Bankruptcy Act does not provide for forgiveness of these debts. Be sure to keep this fact in mind when thinking about becoming bankrupt because the process will not help you if these debts account for a large portion of your bad debts.
When you file a chapter 7, you should know that you will have to wind up your business. In case you are an individual debtor, the public auction will taint the image and reputation of your family. Therefore, you should consider other options before you decide to file the necessary paperwork.
One of the most common options for businesses and individual debtors is chapter 7. To qualify for this option, there is only one requirement that debtors will be required to satisfy. You must prove that you do not have a reliable income to be able to service your debts. Usually, assets belonging to the debtor are liquidated to offset their credit accounts. The liquidation is usually done through a public auction, which can be embarrassing for the debtor and their family.
Chapter 11 is an option that has been designed specifically for businesses. With this chapter, a business or company only needs to show that they have a lot of bad debt and a reliable income source they can use to service their debt under improved terms and conditions. If approved, the management of the business will have to come up with a payment plan based on their disposable income. After a few years, all unpaid debts will be forgiven.
Chapter 13 was designed specifically for individual consumers. It basically entails debt reorganization. You will be asked to come up with a payment plan to service your debts. If the plan is approved, you will get a chance to retain all your assets as you continue to make small monthly payments to offset a portion of your debts. It is important to note that if you default on this plan, your assets will be liquidated under chapter 7.
It is always a good idea to work with a competent lawyer throughout the entire process. This is crucial because you need legal jargon defined. You will also need advice throughout the process. Obviously, you will need help with the paperwork. That is why you should hire a competent lawyer to help you out.
Once you have become bankrupt, you can expect a number of changes to occur in your life. For starters, you will not be able to qualify for cheap credit. You will also not be able to get a better job, rent a house or car. Your reputation may also be tainted significantly.
If you have spousal support payments, child support, overdue taxes and student loans, you should know that you cannot have these debts forgiven through bankruptcy. This is because the Bankruptcy Act does not provide for forgiveness of these debts. Be sure to keep this fact in mind when thinking about becoming bankrupt because the process will not help you if these debts account for a large portion of your bad debts.
When you file a chapter 7, you should know that you will have to wind up your business. In case you are an individual debtor, the public auction will taint the image and reputation of your family. Therefore, you should consider other options before you decide to file the necessary paperwork.
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