Having to file for bankruptcy is never an easy decision. There are different reasons that can make one to file for bankruptcy, including bade investment and spending decisions, illness, lack of employment, and bad luck among many others. When one files with the court system as being bankrupt, they receive protection from harassment by creditors. The filing also helps to prevent foreclosure, repossession of property by creditors among others. When in need of Bankruptcy attorney Santa Cruz should be visited.
There are two major kinds of bankruptcy and based on the state one is in, they may decide to file for any. Chapter 7 and chapter 13 are the two classes of bankruptcy. Wage earner plan is another name for chapter 13 insolvency. With chapter 13, people with a regular income make a repayment plan to settle all or a section of the debts they 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.
A client is usually given an opportunity to go through a petition before it is filed. This is necessary to ensure all assets the debtor owns are listed in the petition. It is also important to ensure there are no mistakes within the documents. The signature of the client must also be placed on the petition before being filed.
There are two major kinds of bankruptcy and based on the state one is in, they may decide to file for any. Chapter 7 and chapter 13 are the two classes of bankruptcy. Wage earner plan is another name for chapter 13 insolvency. With chapter 13, people with a regular income make a repayment plan to settle all or a section of the debts they 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.
A client is usually given an opportunity to go through a petition before it is filed. This is necessary to ensure all assets the debtor owns are listed in the petition. It is also important to ensure there are no mistakes within the documents. The signature of the client must also be placed on the petition before being filed.
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