There are many bankruptcy options that consumers can use to get rid of their debts. While businesses can declare bankruptcy under chapters 7 or 11, individual debtors can do so under chapter 7 and 13. Since the former calls for liquidation of assets, and most people do not want to lose their valuables, the latter is usually the preferred option. When filing a chapter 13 Oakland residents should take their time to learn more about the process to ensure they know exactly what they are getting themselves into.
This bankruptcy option is basically debt reorganization. It simply requires the debtor to make monthly payments to offset their debts as opposed to having their property sold. The payments are usually fixed throughout the bankruptcy period. Once this period lapses, all unpaid debts are written off.
There are many benefits that both debtors and creditors can enjoy from this option. For instance, creditors get a chance to recover more of their funds. Secondly, debtors can avoid having their assets liquidated by the trustee. This will save them a lot of embarrassment.
After filing the necessary paperwork in court, the debtor will be ordered to draft a plan on how they plan to repay their debt. In that plan, they must state both their monthly income and expenses as well as how much they are able to spare for debt repayment. Once the plan has been approved by both creditors and the court, the debtor only needs to meet the terms and conditions to have their debts settled.
It is important to note that while debtors get a chance to reorganize their debts under this legal option, any default will lead to automatic liquidation under Chapter 7. Therefore, sticking to the agreed terms and conditions is absolutely crucial. Ideally, debtors should hire a competent lawyer to guide them throughout the entire process.
Before declaring you bankrupt, the court will require you to provide creditors with your repayment plan. If reasonable, the court will approve it. That is when the relationship between creditors and the debtor will end. Any communication between the two parties will be handled by the trustee. If creditors attempt to make any communication, action can be taken against them.
While this option may be great for debtors, it comes with several disadvantages. First, the debtor will be listed as a bankrupt consumer, and this will appear on their credit report. Anyone who runs a credit check on the debtor will learn about their bankrupt state. This will make it hard for the debtor to get a better job, rent a better house or lease a car. Getting cheap loans will also be easy.
When searching for a bankruptcy lawyer in Oakland CA, it is important you pay attention to their experience. The number of cases as well as the number of years a lawyer has been in business should be strongly considered. Be sure to also do some research on the reputation of a lawyer before hiring them. Reputation is a crucial factor to consider as you want to work with a respected lawyer to improve your chances of getting the desired outcome from the case.
This bankruptcy option is basically debt reorganization. It simply requires the debtor to make monthly payments to offset their debts as opposed to having their property sold. The payments are usually fixed throughout the bankruptcy period. Once this period lapses, all unpaid debts are written off.
There are many benefits that both debtors and creditors can enjoy from this option. For instance, creditors get a chance to recover more of their funds. Secondly, debtors can avoid having their assets liquidated by the trustee. This will save them a lot of embarrassment.
After filing the necessary paperwork in court, the debtor will be ordered to draft a plan on how they plan to repay their debt. In that plan, they must state both their monthly income and expenses as well as how much they are able to spare for debt repayment. Once the plan has been approved by both creditors and the court, the debtor only needs to meet the terms and conditions to have their debts settled.
It is important to note that while debtors get a chance to reorganize their debts under this legal option, any default will lead to automatic liquidation under Chapter 7. Therefore, sticking to the agreed terms and conditions is absolutely crucial. Ideally, debtors should hire a competent lawyer to guide them throughout the entire process.
Before declaring you bankrupt, the court will require you to provide creditors with your repayment plan. If reasonable, the court will approve it. That is when the relationship between creditors and the debtor will end. Any communication between the two parties will be handled by the trustee. If creditors attempt to make any communication, action can be taken against them.
While this option may be great for debtors, it comes with several disadvantages. First, the debtor will be listed as a bankrupt consumer, and this will appear on their credit report. Anyone who runs a credit check on the debtor will learn about their bankrupt state. This will make it hard for the debtor to get a better job, rent a better house or lease a car. Getting cheap loans will also be easy.
When searching for a bankruptcy lawyer in Oakland CA, it is important you pay attention to their experience. The number of cases as well as the number of years a lawyer has been in business should be strongly considered. Be sure to also do some research on the reputation of a lawyer before hiring them. Reputation is a crucial factor to consider as you want to work with a respected lawyer to improve your chances of getting the desired outcome from the case.
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