Filing A Chapter 7 Oakland CA

By Jason Ward


Any debtor that is having a difficult time servicing their debts needs to consider getting legal protections. This is because creditors are likely to make threatening phone calls and send messages to the debtor several times of day. Most people would consider this harassment, but it is warranted due to unpaid debts. A chapter 7 Oakland residents should know, is a type of bankruptcy that can protect them from creditors and have their debts written off at the same time.

This option provides for liquidation of assets owned by the debtor to offset their debts. Any electronic, automobiles or stocks among other types of assets that you may own will be sold to pay off your debts. Even if the full amount is not recovered, you will be discharged of all your debts.

Both business and personal debtors can apply for legal protections from creditors through this option. That is why this chapter is incredibly popular. Furthermore, the qualification requirements are also simple since the debtor only needs to have some qualifying debts and no way to settle it.

As with all the other bankruptcy chapters, this option also has some downsides. The first is blacklisting by creditors. You will be blacklisted as your credit report will show that you are bankrupt. As a result, accessing affordable credit will become a difficult task. The worst thing is that the bankruptcy will stay on your report for several years.

Hiring a bankruptcy lawyer to help you out when you are seeking debt help is important. This is because you will need legal advice, guidance and assistance. The ideal lawyer should have a great reputation in the industry as well as experience handling dozens, if not hundreds, of bankruptcy cases in California. The fees charged by the ideal lawyer should also be competitive.

The court normally appoints a trustee to oversee the bankruptcy proceedings. This is usually done once the court has formally received the bankruptcy petition. The trustee will make sure that the debtor is truly unable to service their debts to warrant the bankruptcy petition. They will then collect all the assets to be sold during the auction and make arrangements for the auction.

Nowadays, many firms normally run credit checks. For instance, property managers normally run credit checks on tenants before approving tenancy applications. Employers, on the other hand, normally run credit checks on job applicants. Those who are bankrupt, or have poor credit scores, are normally at a disadvantage and may be denied most jobs.

Nobody should rush to file for bankruptcy. This is an option of last resort. Ideally, consumers should consider restructuring their debt. In case of long-term loans, refinancing to extend the repayment period can make things easier for consumers. Debt consolidation should also be considered to reduce interest rates and make payments easier. Bankruptcy should only be considered after all these options have failed to yield any fruit. If done right, bankruptcy can free you from the burden of bad debt.




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