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 type of bankruptcy is only for individual debtors. Businesses and corporates cannot use this option to get rid of their debts. To have your debts forgiven through this option, you have to send monthly payments to the trustee at the end of every month for a certain number of years. In return, your bad debts will be written off.
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 file for bankruptcy, you need to look for a suitable lawyer to help you file the necessary paperwork. The lawyer will also advise you and guide you throughout the entire debt resolution process. Please note that having legal counsel is crucial as the trustee may want to take advantage of you. If you do not have the relevant information, you may get exploited by the trustee. This is the number one reason why you need to have a competent attorney by your side.
Please note that your credit rating will be damaged when the bankruptcy entry is added to your credit history. As a result, you may not be able to rent a decent house or car, or even get a decent job. Furthermore, it will become almost impossible for you to borrow money from banks and other mainstream lenders. These are just some of the things you should know about before filing the necessary paperwork.
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 type of bankruptcy is only for individual debtors. Businesses and corporates cannot use this option to get rid of their debts. To have your debts forgiven through this option, you have to send monthly payments to the trustee at the end of every month for a certain number of years. In return, your bad debts will be written off.
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 file for bankruptcy, you need to look for a suitable lawyer to help you file the necessary paperwork. The lawyer will also advise you and guide you throughout the entire debt resolution process. Please note that having legal counsel is crucial as the trustee may want to take advantage of you. If you do not have the relevant information, you may get exploited by the trustee. This is the number one reason why you need to have a competent attorney by your side.
Please note that your credit rating will be damaged when the bankruptcy entry is added to your credit history. As a result, you may not be able to rent a decent house or car, or even get a decent job. Furthermore, it will become almost impossible for you to borrow money from banks and other mainstream lenders. These are just some of the things you should know about before filing the necessary paperwork.
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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