Debts are treated differently when filing for bankruptcy. This is a fact that you need to know before you start the filing process. Even through a successful case will leave you with the promise of being able to start afresh financially, this does not mean that you will get off the loop when it comes to settling certain debts. If you want to file for bankruptcy Santa Cruz could offer you a decent number of reliable attorneys who could lend a hand.
The courts will consider debts based on whether they are unsecured, secured or priority claims. It remains vital for you to get well acquainted with the different types of creditor claims and how they will affect the overall outcome of your matter. A competent lawyer will be able to dispense guidance and generally ensure that you have in-depth understanding of all the claims being made.
Secured claims are the debts that have liens placed against particular assets. Some of the most common secured debts include mortgages, property taxes and car loans. Bankruptcy can relieve you of all liability related to these debts. Even so, failure to get the debts settled would leave the creditor with the legal power to regain possession of a specific asset.
Unsecured claims refer to debts that do not have a lien placed against a property. Such loans include medical bills, credit card bills, student loans and personal loans just to mention a few. Fortunately, such debts can be eliminated during bankruptcy proceedings. Even so, you will first need to prove to the courts that getting these debts settled would cause extreme hardship. It is also important to know that unsecured debts cannot be discharged when filing under Chapter 13 or Chapter 7.
Priority claims also fall under unsecured debts, the only difference being that they cannot be discharged. Examples of such debts include child support, tax obligations and alimony just to mention a few. The laws make it clear that these debts have to be settled way before you give a dime to any creditor. The good news is that you can include priority claims in your repayment plan if you file for Chapter 13 bankruptcy.
Getting declared bankrupt will not happen overnight. Then again each chapter comes with a special set of complexities that may make it challenging for one to file a successful case. If getting declared bankrupt is really important to you, then you must not underestimate the importance of working with an experienced attorney.
There are numerous chapters under which you can file a case. Even though most people know about chapter 7 and chapter 13, you can also file under chapter 11, 9 or 12. Your lawyer will look into the special circumstances revolving around your case and inform you about the clauses that could work to your advantage.
It will be necessary for you to do a keen research before choosing the attorney to hire. Top rated specialists are not easy to find and you should be ready to use online resources and even seek recommendations from your trusted acquaintances. The right lawyer to hire should be someone that you can trust wholly with your case.
The courts will consider debts based on whether they are unsecured, secured or priority claims. It remains vital for you to get well acquainted with the different types of creditor claims and how they will affect the overall outcome of your matter. A competent lawyer will be able to dispense guidance and generally ensure that you have in-depth understanding of all the claims being made.
Secured claims are the debts that have liens placed against particular assets. Some of the most common secured debts include mortgages, property taxes and car loans. Bankruptcy can relieve you of all liability related to these debts. Even so, failure to get the debts settled would leave the creditor with the legal power to regain possession of a specific asset.
Unsecured claims refer to debts that do not have a lien placed against a property. Such loans include medical bills, credit card bills, student loans and personal loans just to mention a few. Fortunately, such debts can be eliminated during bankruptcy proceedings. Even so, you will first need to prove to the courts that getting these debts settled would cause extreme hardship. It is also important to know that unsecured debts cannot be discharged when filing under Chapter 13 or Chapter 7.
Priority claims also fall under unsecured debts, the only difference being that they cannot be discharged. Examples of such debts include child support, tax obligations and alimony just to mention a few. The laws make it clear that these debts have to be settled way before you give a dime to any creditor. The good news is that you can include priority claims in your repayment plan if you file for Chapter 13 bankruptcy.
Getting declared bankrupt will not happen overnight. Then again each chapter comes with a special set of complexities that may make it challenging for one to file a successful case. If getting declared bankrupt is really important to you, then you must not underestimate the importance of working with an experienced attorney.
There are numerous chapters under which you can file a case. Even though most people know about chapter 7 and chapter 13, you can also file under chapter 11, 9 or 12. Your lawyer will look into the special circumstances revolving around your case and inform you about the clauses that could work to your advantage.
It will be necessary for you to do a keen research before choosing the attorney to hire. Top rated specialists are not easy to find and you should be ready to use online resources and even seek recommendations from your trusted acquaintances. The right lawyer to hire should be someone that you can trust wholly with your case.
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