Thursday, 11 October 2018

Common Types Of Bankruptcy Santa Cruz That You Should Know About

By Debra Reynolds


If you want to get declared bankrupt, it will be in your best interests to get educated about the options you have. Most people are able to qualify for bankruptcy under chapter 7 or chapter 13. However, you can also find other options that are specially designed for businesses, municipalities and farmers. If you need to for bankruptcy Santa Cruz could offer you a decent number of highly proficient lawyers who can help you out.

Before you get down on filing a petition, you may want to get a better understanding of the different forms of bankruptcy. First, there is Chapter 7 and it is also referred to as liquidation. With this, an individual or entity is allowed to surrender its assets in in return get a chance to legally get rid of most debts. Your attorney will do a means test to determine whether you qualify for debt relief under the Chapter 7 clauses.

Even municipalities like district schools, counties, towns and cities can get into money problems. In case they need to be declared bankrupt, then they will need to file for protection under the Chapter 9 clauses. This will allow them to retain specific assets and create a suitable debt repayment plan.

Chapter 11 also goes by the name reorganization. It contains clauses that are ideal for businesses that require protection from their creditors. A business is allowed to create a plan that demonstrates how debts can get paid while retaining assets and control of the company. Thanks to the expensive nature of filing under this chapter and also the complexities involved, only rich individuals and businesses find it ideal.

You could also decide to file under Chapter 12, though you would need to be a farmer or a fisherman who enjoys regular income. If you are in money problems and you are unable to handle your debt issues in a graceful manner, a successful petition would allow you to get your debts reorganized and settled in less than three years.

Another common type of bankruptcy is Chapter 13. It allows individuals who successfully file a petition to restructure their debts. There are certain creditors that will have to be paid and full, together with their interest. On the other hand other creditors will simply need to get the outstanding debts settled. It is also possible to have certain creditors whom you will be allowed to pay partially.

The need to work with a proficient attorney should not be overlooked. The expert will take your special circumstances into consideration and inform you about the best bankruptcy option to choose. This will be done after your financial situation is keenly evaluated. Bear in mind that the wrong Chapter may not afford you the solutions you need.

Then again, it makes sense to get assistance, especially when handling the relevant paperwork. It remains crucial for you to understand that even a minor mistake can lead to the dismissal of your petition. Apart from saving you from the horrors of making costly mistakes, your attorney will also ensure that you are well represented in court.




About the Author:



No comments:

Post a Comment