It is a hard decision to file for bankruptcy, but this is a decision that people make based on various reasons. Illness, bad luck, lack of employment, bad investment and poor spending decisions are part of the many reasons that push people into filing for insolvency. A person is protected from being harassed by creditors when they file with the court system for insolvency. With this, one is protected from repossession and foreclosure of property by creditors and other parties. When in search of Bankruptcy attorney Santa Cruz should be given priority.
Two major types of bankruptcy exist, and one can choose to file any of them depending on their situation. The two categories are chapter 7 and chapter 13. Chapter13 is also referred to as wage earner plans. Wage earner plan is meant to allow individuals who have a regular income to come up with a plan for repaying all or part of the debts the owe creditors.
A defaulter suggests a repayment plan they will use to repay their creditors in installments. The period for repaying runs for around three to five years. Chapter 7 insolvency is however more harsh. Here, the belongings of the debtor are collected by insolvency trustees who in turn sell them in order to repay creditors. There are codes to be followed during these transactions. Having legal representation is very important in both cases.
Lawyers who specialize in bankruptcy law use their experience to negotiate cases in the place of clients. In chapter 7 insolvency, they help to ensure that all debts are settled while in chapter 13, they help with reorganization of debts. Responsibilities and duties of lawyers vary a lot here.
During the initial consultation with the lawyer, they will take time to assess the financial situation of the client. This is meant to allow the lawyer to understand financial goals of the client and also to discuss the different debt relief options that exist. The lawyer helps to determine if filing as being bankrupt is the best option. If it is, they decide which chapter is the best to file.
The lawyer and the client usually discuss fees and other payments charged during initial consultation. The moment an attorney is hired, they start carrying out a number of tasks in the place of their client. For example, they will start taking collection calls in the place of the client. During this time creditors will start dealing with the lawyer instead of directly calling the debtor. Creditors on the other hand will keep calling and making contact with the debtor until a case is filed.
Preparation, typing, and filing the petition is the greatest work lawyer normally does. The petition has several forms that have to be filed with the insolvency court. The number of creditors a person has determines the amount of pages in the petition. The petition may be as long as 60 pages when there are many creditors.
Before the petition is filed, the client is usually given a chance to review the document. This is meant to make sure that all assets owned by the debtors have been listed. It also ensures that no mistakes have been made. The client must also sign the petition before it is filed.
Two major types of bankruptcy exist, and one can choose to file any of them depending on their situation. The two categories are chapter 7 and chapter 13. Chapter13 is also referred to as wage earner plans. Wage earner plan is meant to allow individuals who have a regular income to come up with a plan for repaying all or part of the debts the owe creditors.
A defaulter suggests a repayment plan they will use to repay their creditors in installments. The period for repaying runs for around three to five years. Chapter 7 insolvency is however more harsh. Here, the belongings of the debtor are collected by insolvency trustees who in turn sell them in order to repay creditors. There are codes to be followed during these transactions. Having legal representation is very important in both cases.
Lawyers who specialize in bankruptcy law use their experience to negotiate cases in the place of clients. In chapter 7 insolvency, they help to ensure that all debts are settled while in chapter 13, they help with reorganization of debts. Responsibilities and duties of lawyers vary a lot here.
During the initial consultation with the lawyer, they will take time to assess the financial situation of the client. This is meant to allow the lawyer to understand financial goals of the client and also to discuss the different debt relief options that exist. The lawyer helps to determine if filing as being bankrupt is the best option. If it is, they decide which chapter is the best to file.
The lawyer and the client usually discuss fees and other payments charged during initial consultation. The moment an attorney is hired, they start carrying out a number of tasks in the place of their client. For example, they will start taking collection calls in the place of the client. During this time creditors will start dealing with the lawyer instead of directly calling the debtor. Creditors on the other hand will keep calling and making contact with the debtor until a case is filed.
Preparation, typing, and filing the petition is the greatest work lawyer normally does. The petition has several forms that have to be filed with the insolvency court. The number of creditors a person has determines the amount of pages in the petition. The petition may be as long as 60 pages when there are many creditors.
Before the petition is filed, the client is usually given a chance to review the document. This is meant to make sure that all assets owned by the debtors have been listed. It also ensures that no mistakes have been made. The client must also sign the petition before it is filed.
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