Becoming bankrupt is never something that someone plans as they live their life. Most people usually find themselves in this situation. To avoid bankruptcy, all you have to do is live within your means and spend less money than you earn. Making prompt loan payments will also help to improve your credit rating, which will reduce your cost of borrowing. If you find yourself in a financial mess, however, you should consider filing a chapter 7 Oakland CA.
There are three main forms of bankruptcy but individual consumers can only qualify for two of them. These are chapters 7 and 13. The former provides for liquidation of property to recover funds to pay creditors. The latter, however, provides for restructuring of debts owed by the debtor. Both have advantages and shortcomings, so it is important to think over the decision before making a final decision.
There is only one way to qualify for chapter 7 bankruptcy. You must have bad debts exceeding the threshold set under the law, and an unreliable source of income. If you have a reliable source of income, the court may recommend debt restructuring as opposed to liquidation.
The trustee is the most important person in a bankruptcy process. This is because they are appointed by the court to ensure that bankruptcy applicants qualify for the chapter they have applied for. They also go through the finances of the debtor to ensure that there are no signs of fraud. The trustee is also the one who will organize the auction and communicate with creditors.
It is important to note that the funds recovered from liquidating assets does not have to be enough to settle the outstanding debts. The funds could be only a tenth or a quarter of your outstanding debts, but your debts will be forgiven once the funds have been distributed to all the creditors.
There is a strict procedure that must be followed to the letter during a chapter 7 bankruptcy. First, the trustee liquidates all eligible assets and uses the funds to pay off debts. They usually start with taxes and court fees in full. The second step is to distribute the balance among the creditors based on their total share of the outstanding debt in question.
All forms of bankruptcies have consequences that consumers should know about before deciding to file the necessary paperwork. The first is listing by creditors. Your credit report will show that you are bankrupt, so lenders will reject all your loan applications. Your credit cards will also be cancelled. Renting a car or house, or even getting a job, when you are bankrupt is not easy. This is because nobody wants to associate themselves with an individual who is deemed financially irresponsible. Before you seek bankruptcy protections, therefore, you should familiarize yourself with the consequences of bankruptcy.
When you want to enjoy the legal protections provided by the Federal Bankruptcy Act, you should take your time to hire a competent lawyer who will help you with the case. In addition to advising you throughout the process, the lawyer will also help you with the paperwork and represent you where necessary. When looking for a suitable lawyer to hire, experience and reputation are the most important factors to consider.
There are three main forms of bankruptcy but individual consumers can only qualify for two of them. These are chapters 7 and 13. The former provides for liquidation of property to recover funds to pay creditors. The latter, however, provides for restructuring of debts owed by the debtor. Both have advantages and shortcomings, so it is important to think over the decision before making a final decision.
There is only one way to qualify for chapter 7 bankruptcy. You must have bad debts exceeding the threshold set under the law, and an unreliable source of income. If you have a reliable source of income, the court may recommend debt restructuring as opposed to liquidation.
The trustee is the most important person in a bankruptcy process. This is because they are appointed by the court to ensure that bankruptcy applicants qualify for the chapter they have applied for. They also go through the finances of the debtor to ensure that there are no signs of fraud. The trustee is also the one who will organize the auction and communicate with creditors.
It is important to note that the funds recovered from liquidating assets does not have to be enough to settle the outstanding debts. The funds could be only a tenth or a quarter of your outstanding debts, but your debts will be forgiven once the funds have been distributed to all the creditors.
There is a strict procedure that must be followed to the letter during a chapter 7 bankruptcy. First, the trustee liquidates all eligible assets and uses the funds to pay off debts. They usually start with taxes and court fees in full. The second step is to distribute the balance among the creditors based on their total share of the outstanding debt in question.
All forms of bankruptcies have consequences that consumers should know about before deciding to file the necessary paperwork. The first is listing by creditors. Your credit report will show that you are bankrupt, so lenders will reject all your loan applications. Your credit cards will also be cancelled. Renting a car or house, or even getting a job, when you are bankrupt is not easy. This is because nobody wants to associate themselves with an individual who is deemed financially irresponsible. Before you seek bankruptcy protections, therefore, you should familiarize yourself with the consequences of bankruptcy.
When you want to enjoy the legal protections provided by the Federal Bankruptcy Act, you should take your time to hire a competent lawyer who will help you with the case. In addition to advising you throughout the process, the lawyer will also help you with the paperwork and represent you where necessary. When looking for a suitable lawyer to hire, experience and reputation are the most important factors to consider.
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