There are many common reasons why people often become bankrupt. For starters, they may need to get legal protection from creditors. They may also need a solution for their serious debt problem. There are also distressed homeowners who are staring at foreclosure who often opt to become bankrupt to stall or stop the foreclosure proceedings. Whatever the reason, hiring a competent lawyer to help you file for bankruptcy CA is always recommended.
You can become bankrupt either voluntarily or involuntarily. If you are seeking the protection of the court, you can decide to become bankrupt voluntarily. However, creditors can decide to ask the court to declare you bankrupt to initiate debt recovery processes. This means that you will become bankrupt involuntarily.
Individual debtors can get rid of their bad debts conveniently through debt reorganization under chapter 13. This chapter makes it possible for debtors to retain their assets as they make monthly payments. After a few years of making regular monthly payments, all unpaid debts are forgiven. However, the debtor must have a reliable income to qualify for this chapter.
Chapter 7 is considered the default option. This chapter is meant for both corporate and individual debtors without a source of income. It entails liquidation of assets owned by the debtor. After the liquidation process, the debtor is forgiven of any unpaid debts they may have. In case a debtor who has been declared bankrupt under chapter 13 or chapter 11 defaults on their repayment plan, they can also be declared bankrupt under chapter 7.
The most experienced lawyers should always be given priority consideration. This is crucial because you want to get the highest quality of service, and experienced lawyers are known to offer quality services. Only lawyers that have handled many similar cases within the state and have a great reputation in the industry should be considered. Ideally, you should start your search for the right lawyer with a shortlist.
Chapter 11 was designed with business and corporate debtors in mind. Therefore, you can file for this chapter if you have a lot of bad business or corporate debts. Obviously, you must prove that the business has a reliable income to qualify for this option. Please note that any major business decisions will have to be approved by the trustee because they will be acting in the interest of the court.
It is important to note that once you have become bankrupt, you will not be able to borrow any loans for some time. This is because most lenders will refuse to approve your loan application on the account that you have a tainted history. Firms that may be willing to lend you money, on the other hand, will quote higher rates of interest and unfavorable terms. Getting a better job or renting a business premise or home will also become extremely challenging.
Many people often make the mistake of looking at bankruptcy as the best option of getting rid of their personal debts. However, this is not the case. After all, there is a price to pay for becoming bankrupt. This includes a tainted credit history and a damaged reputation. Therefore, this should only be looked at as an option of last resort.
You can become bankrupt either voluntarily or involuntarily. If you are seeking the protection of the court, you can decide to become bankrupt voluntarily. However, creditors can decide to ask the court to declare you bankrupt to initiate debt recovery processes. This means that you will become bankrupt involuntarily.
Individual debtors can get rid of their bad debts conveniently through debt reorganization under chapter 13. This chapter makes it possible for debtors to retain their assets as they make monthly payments. After a few years of making regular monthly payments, all unpaid debts are forgiven. However, the debtor must have a reliable income to qualify for this chapter.
Chapter 7 is considered the default option. This chapter is meant for both corporate and individual debtors without a source of income. It entails liquidation of assets owned by the debtor. After the liquidation process, the debtor is forgiven of any unpaid debts they may have. In case a debtor who has been declared bankrupt under chapter 13 or chapter 11 defaults on their repayment plan, they can also be declared bankrupt under chapter 7.
The most experienced lawyers should always be given priority consideration. This is crucial because you want to get the highest quality of service, and experienced lawyers are known to offer quality services. Only lawyers that have handled many similar cases within the state and have a great reputation in the industry should be considered. Ideally, you should start your search for the right lawyer with a shortlist.
Chapter 11 was designed with business and corporate debtors in mind. Therefore, you can file for this chapter if you have a lot of bad business or corporate debts. Obviously, you must prove that the business has a reliable income to qualify for this option. Please note that any major business decisions will have to be approved by the trustee because they will be acting in the interest of the court.
It is important to note that once you have become bankrupt, you will not be able to borrow any loans for some time. This is because most lenders will refuse to approve your loan application on the account that you have a tainted history. Firms that may be willing to lend you money, on the other hand, will quote higher rates of interest and unfavorable terms. Getting a better job or renting a business premise or home will also become extremely challenging.
Many people often make the mistake of looking at bankruptcy as the best option of getting rid of their personal debts. However, this is not the case. After all, there is a price to pay for becoming bankrupt. This includes a tainted credit history and a damaged reputation. Therefore, this should only be looked at as an option of last resort.
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