One of the hardest decisions one ever has to make is filing for bankruptcy. Bankruptcy can be filed for due to a number of reasons, including bad investment, unemployment, bad luck, illness and extravagant spending. Filing for insolvency in court usually protects one from being harassed by creditors. One is also protected from having their property repossessed by creditors and being foreclosed upon. When one needs Bankruptcy attorney Santa Cruz offers the perfect location to visit.
Two major types of bankruptcy exist, and one can choose to file any of them depending on their situation. The two categories are chapter 7 and chapter 13. Chapter13 is also referred to as wage earner plans. Wage earner plan is meant to allow individuals who have a regular income to come up with a plan for repaying all or part of the debts the owe creditors.
A repayment plan is proposed by the debtor and it has to be adhered to while paying debts in installments. About three to five years is normally the repayment duration allowed. Chapter 7 bankruptcy is usually harsher and dangerous. Bankruptcy trustees collect properties belonging to the debtor so that they can sell them and recoup the money owed to creditors. There is a specific code that should be followed during this process. One should have legal representation when they file for being bankrupt.
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.
Two major types of bankruptcy exist, and one can choose to file any of them depending on their situation. The two categories are chapter 7 and chapter 13. Chapter13 is also referred to as wage earner plans. Wage earner plan is meant to allow individuals who have a regular income to come up with a plan for repaying all or part of the debts the owe creditors.
A repayment plan is proposed by the debtor and it has to be adhered to while paying debts in installments. About three to five years is normally the repayment duration allowed. Chapter 7 bankruptcy is usually harsher and dangerous. Bankruptcy trustees collect properties belonging to the debtor so that they can sell them and recoup the money owed to creditors. There is a specific code that should be followed during this process. One should have legal representation when they file for being bankrupt.
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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