There are many debtors with a lot of unmanageable debts. The good news is that the law provides for legal avenues for resolution of bad debts. For instance, there are several types of bankruptcies that debtors can use to resolve their debts. To get accurate information about these debt resolution options, it is important for debtors to hire the best bankruptcy attorney Oakland has to offer.
The first thing your lawyer will explain to you is the different types of bankruptcies that you can use. They will then take you through the pros and cons of each option and help you decide the best one for your needs. The lawyer will also pre-qualify you for that bankruptcy chapter. If you do not qualify for one option, they will recommend the right one for your financial situation.
Chapter 13 will only be prescribed by your lawyer if you have a reliable income source. After all, this chapter requires the debtor to make regular monthly payments over a period of several years to get debt forgiveness. If you have a reliable source of income, you will have to draft a repayment plan and propose an installment that you can afford to pay every month. If you honor the terms of the plan, you will get debt forgiveness.
If your business has a lot of bad debt, you can seek to have it declared bankrupt under chapter 11. This is the most obvious option that your lawyer will recommend you use. After all, this chapter makes it possible for you to continue running your business as you repay your debts. It also provides for debt forgiveness at the end of the bankruptcy process, so it has many benefits for business owners.
The default bankruptcy option, your lawyer will tell you, is chapter 7. If you cannot qualify for either chapter 13 or chapter 11, you will be declared bankrupt under chapter 7. If you are declared bankrupt under chapters 11 or 13, but you default on the repayment plan, your assets will be liquidated under chapter 7. As you can see, it is the default option.
If you do not have an income source, but you have a lot of bad debt and some assets, you will qualify for chapter 7. This chapter allows the trustee to liquidate all non-exempt items owned by the debtor to recover funds to repay their debts. The sale of assets is usually done by public auction, so it is usually a public and embarrassing affair the debtors would want to avoid.
When looking for a suitable lawyer, experience is the most crucial factor of consideration. This is because you want to hire the most competent lawyer you can find. Therefore, you should check the number of years a lawyer has been in the industry as well as the number of cases handled.
It is important to note that bankruptcy has several disadvantages that consumers should know about before they make a decision. For starters, it will lead to blacklisting of the debtor by creditors. This will make access to affordable credit almost impossible. It will also taint their reputation since bankrupt businesses or individuals are usually listed on public records. Therefore, debtors, whether corporate or individual, should keep all these in mind before making their final decision.
The first thing your lawyer will explain to you is the different types of bankruptcies that you can use. They will then take you through the pros and cons of each option and help you decide the best one for your needs. The lawyer will also pre-qualify you for that bankruptcy chapter. If you do not qualify for one option, they will recommend the right one for your financial situation.
Chapter 13 will only be prescribed by your lawyer if you have a reliable income source. After all, this chapter requires the debtor to make regular monthly payments over a period of several years to get debt forgiveness. If you have a reliable source of income, you will have to draft a repayment plan and propose an installment that you can afford to pay every month. If you honor the terms of the plan, you will get debt forgiveness.
If your business has a lot of bad debt, you can seek to have it declared bankrupt under chapter 11. This is the most obvious option that your lawyer will recommend you use. After all, this chapter makes it possible for you to continue running your business as you repay your debts. It also provides for debt forgiveness at the end of the bankruptcy process, so it has many benefits for business owners.
The default bankruptcy option, your lawyer will tell you, is chapter 7. If you cannot qualify for either chapter 13 or chapter 11, you will be declared bankrupt under chapter 7. If you are declared bankrupt under chapters 11 or 13, but you default on the repayment plan, your assets will be liquidated under chapter 7. As you can see, it is the default option.
If you do not have an income source, but you have a lot of bad debt and some assets, you will qualify for chapter 7. This chapter allows the trustee to liquidate all non-exempt items owned by the debtor to recover funds to repay their debts. The sale of assets is usually done by public auction, so it is usually a public and embarrassing affair the debtors would want to avoid.
When looking for a suitable lawyer, experience is the most crucial factor of consideration. This is because you want to hire the most competent lawyer you can find. Therefore, you should check the number of years a lawyer has been in the industry as well as the number of cases handled.
It is important to note that bankruptcy has several disadvantages that consumers should know about before they make a decision. For starters, it will lead to blacklisting of the debtor by creditors. This will make access to affordable credit almost impossible. It will also taint their reputation since bankrupt businesses or individuals are usually listed on public records. Therefore, debtors, whether corporate or individual, should keep all these in mind before making their final decision.
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You can get an overview of important things to consider when selecting a bankruptcy attorney Oakland area at http://www.centralcoastbankruptcy.com/bankruptcy-overview.html right now.
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