When you have a lot of bad debts that you are not able to pay off, you should not hesitate to file for bankruptcy. This option has been provided for under the bankruptcy laws of the land, and it is meant to protect consumers like you. What you should do is consult a bankruptcy attorney to see if you qualify for bankruptcy and learn what you stand to gain or lose through this option. When filing a chapter 13 Oakland residents should know that their life may never be the same once they are declared bankrupt.
Consumers have access to a number of bankruptcy chapters. However, chapter 13 bankruptcy is the most popular. This is because it is considered more convenient or less punitive. This is because the debtor does not lose any assets. Instead of liquidation, the debtor is only required to make convenient monthly payments for a number of years.
When you decide to seek bankruptcy, the first thing you should do is hire a competent bankruptcy attorney to help you with the case. This legal professional will explain to you all the pros and cons of becoming bankrupt under this chapter. They will also look at your financial position to help you make an informed decision.
Once the court receives your bankruptcy petition, the court will appoint a trustee. You will also be asked to come up with a repayment plan. The trustee can help you come up with a plan that is convenient for you and acceptable to the court and creditors.
There are many types of debts that cannot be subjected to bankruptcy proceedings. If you have an overdue tax bill, for instance, you must pay your taxes. If you have student loan debts or child support payments, you will be required to settle these debts without fail. This is because they cannot be forgiven through bankruptcy.
The main advantage of this bankruptcy option over chapter 7 is that your assets will not be touched as your debts will be settled through a convenient repayment plan. This means that you can avoid the embarrassment of having your personal belongings auctioned to get funds to settle your debts. It is also much more confidential as you can get rid of your debts without everyone knowing about your financial situation.
An important point to note about bankruptcy is that it has some shortcomings. For one, it does not cover all debts. Secondly, the bankrupt consumer will be listed as a defaulter, which will make it hard for them to access low interest loans. Getting a better job that comes with a credit check will also be impossible. In fact, renting a car or house will become a difficult task. Be sure to keep this in mind as you seek bankruptcy.
If you are declared bankrupt under this option, you should be careful not to default on the payment plan you proposed. This is because the debt restructuring plan will be converted into liquidation, so your assets will be auctioned to recover funds to pay off your debts. There is no use of seeking debt restructuring if you are not able to meet the terms and conditions. In fact, you should just file for chapter 7 and have your assets liquidated immediately so that you can start life afresh as soon as possible. Therefore, you should make the necessary changes in your life to ensure you can honor the payment plan for the restructured debt.
Consumers have access to a number of bankruptcy chapters. However, chapter 13 bankruptcy is the most popular. This is because it is considered more convenient or less punitive. This is because the debtor does not lose any assets. Instead of liquidation, the debtor is only required to make convenient monthly payments for a number of years.
When you decide to seek bankruptcy, the first thing you should do is hire a competent bankruptcy attorney to help you with the case. This legal professional will explain to you all the pros and cons of becoming bankrupt under this chapter. They will also look at your financial position to help you make an informed decision.
Once the court receives your bankruptcy petition, the court will appoint a trustee. You will also be asked to come up with a repayment plan. The trustee can help you come up with a plan that is convenient for you and acceptable to the court and creditors.
There are many types of debts that cannot be subjected to bankruptcy proceedings. If you have an overdue tax bill, for instance, you must pay your taxes. If you have student loan debts or child support payments, you will be required to settle these debts without fail. This is because they cannot be forgiven through bankruptcy.
The main advantage of this bankruptcy option over chapter 7 is that your assets will not be touched as your debts will be settled through a convenient repayment plan. This means that you can avoid the embarrassment of having your personal belongings auctioned to get funds to settle your debts. It is also much more confidential as you can get rid of your debts without everyone knowing about your financial situation.
An important point to note about bankruptcy is that it has some shortcomings. For one, it does not cover all debts. Secondly, the bankrupt consumer will be listed as a defaulter, which will make it hard for them to access low interest loans. Getting a better job that comes with a credit check will also be impossible. In fact, renting a car or house will become a difficult task. Be sure to keep this in mind as you seek bankruptcy.
If you are declared bankrupt under this option, you should be careful not to default on the payment plan you proposed. This is because the debt restructuring plan will be converted into liquidation, so your assets will be auctioned to recover funds to pay off your debts. There is no use of seeking debt restructuring if you are not able to meet the terms and conditions. In fact, you should just file for chapter 7 and have your assets liquidated immediately so that you can start life afresh as soon as possible. Therefore, you should make the necessary changes in your life to ensure you can honor the payment plan for the restructured debt.
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