Bankruptcy is a legal option that is meant for consumers and businesses. It is meant to make it easier for debtors to settle their debt. Anyone who has a lot of unmanageable debt can file for bankruptcy and have their debts written off. For instance, if you have a lot of credit card debt, personal loans and car loans that you are not able to service, you should consider filing for bankruptcy. When planning to file a chapter 13 Oakland residents need to hire a competent bankruptcy attorney.
Bankruptcy has advantages and disadvantages. The main advantages include; debt forgiveness and peace of mind since creditors will be forced to stop contacting debtors or sending debt collectors to go after debtors. As a result, the debtor can work on how they can settle their debts under the bankruptcy act.
This bankruptcy chapter is meant for consumers. Corporates and businesses cannot use this option, which basically makes debt reorganization possible. Once the bankruptcy paperwork has been filed in court, a trustee will be appointed to receive the monthly payments and distribute it among your creditors based on their fraction of the total debt. The monthly payments are based on your ability to pay, not the outstanding debt.
With this chapter, the debtor retains ownership of all their assets as nothing is sold to offset debts. With a chapter 7, your property will be auctioned off to recover funds to settle your debts. This means that the chapter will allow you to continue living the life you are used to as you work on clearing your debts.
Before you consider bankruptcy, it may be a good idea to consult a bankruptcy lawyer. This legal professional will give you the advice and guidance needed to ensure you make a well-informed decision. Please note that there are other debt resolution options that you can use before you consider bankruptcy. Having a competent lawyer by your side will help to ensure the trustee does not take advantage of you.
It is important to note that your credit rating will be tainted if you are declared bankrupt. This means that you will not be able to borrow low interest loans for a long time. Similarly, you will not be able to get a better job or rent a car or house. After all, most businesses nowadays run credit checks before making important business decisions.
Knowing how this legal debt resolution option works is the key to success. When the debtor files the necessary paperwork in court, a trustee will be appointed. The work of the trustee is to ensure that there are no shady dealings in the financial records of the applicants. The trustee will also check the total amount of debt versus the average income of the debtor and their total assets to ensure that the applicant qualifies for this bankruptcy chapter.
Once the case has been accepted in court, it will be the responsibility of the debtor to come up with a suitable repayment plan, which must be presented to creditors. The repayment plan will be based on the income of the debtor. If approved, the debtor will be required to forward monthly installments to the trustee on a monthly basis.
Bankruptcy has advantages and disadvantages. The main advantages include; debt forgiveness and peace of mind since creditors will be forced to stop contacting debtors or sending debt collectors to go after debtors. As a result, the debtor can work on how they can settle their debts under the bankruptcy act.
This bankruptcy chapter is meant for consumers. Corporates and businesses cannot use this option, which basically makes debt reorganization possible. Once the bankruptcy paperwork has been filed in court, a trustee will be appointed to receive the monthly payments and distribute it among your creditors based on their fraction of the total debt. The monthly payments are based on your ability to pay, not the outstanding debt.
With this chapter, the debtor retains ownership of all their assets as nothing is sold to offset debts. With a chapter 7, your property will be auctioned off to recover funds to settle your debts. This means that the chapter will allow you to continue living the life you are used to as you work on clearing your debts.
Before you consider bankruptcy, it may be a good idea to consult a bankruptcy lawyer. This legal professional will give you the advice and guidance needed to ensure you make a well-informed decision. Please note that there are other debt resolution options that you can use before you consider bankruptcy. Having a competent lawyer by your side will help to ensure the trustee does not take advantage of you.
It is important to note that your credit rating will be tainted if you are declared bankrupt. This means that you will not be able to borrow low interest loans for a long time. Similarly, you will not be able to get a better job or rent a car or house. After all, most businesses nowadays run credit checks before making important business decisions.
Knowing how this legal debt resolution option works is the key to success. When the debtor files the necessary paperwork in court, a trustee will be appointed. The work of the trustee is to ensure that there are no shady dealings in the financial records of the applicants. The trustee will also check the total amount of debt versus the average income of the debtor and their total assets to ensure that the applicant qualifies for this bankruptcy chapter.
Once the case has been accepted in court, it will be the responsibility of the debtor to come up with a suitable repayment plan, which must be presented to creditors. The repayment plan will be based on the income of the debtor. If approved, the debtor will be required to forward monthly installments to the trustee on a monthly basis.
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