Having to file for bankruptcy is never an easy decision. There are different reasons that can make one to file for bankruptcy, including bade investment and spending decisions, illness, lack of employment, and bad luck among many others. When one files with the court system as being bankrupt, they receive protection from harassment by creditors. The filing also helps to prevent foreclosure, repossession of property by creditors among others. When in need of Bankruptcy attorney Santa Cruz should be visited.
There are two major kinds of bankruptcy and based on the state one is in, they may decide to file for any. Chapter 7 and chapter 13 are the two classes of bankruptcy. Wage earner plan is another name for chapter 13 insolvency. With chapter 13, people with a regular income make a repayment plan to settle all or a section of the debts they owe creditors.
The debtor proposes a repayment plan that they will follow to repay creditors in installments. The repayment period usually spans between three and five years. On the other hand, chapter 7 bankruptcy is a bit harsher. In this case, the bankruptcy trustees gather all possessions owned by the debtor and sell them off so as to repay creditors. There is a code that must be followed during all of these transactions. In both cases, it is important to have legal counsel.
These lawyers have a specialty in using bankruptcy laws to negotiate cases on behalf of clients. In a chapter 7 case, these lawyers help to eliminate all debts that one may have while in a chapter 13 case, they help to reorganize debts. The lawyers are entrusted with a wide range of responsibilities and duties.
The lawyer spends time assessing the financial position of the client during initial consultations. This assessment helps the law to know any financial goals the client may have. The initial consultation provides a chance for the client and lawyer to talk about and explore any debt relief options available. Based on the discussion, the lawyer may advice for or against filing for insolvency and which chapter to file for.
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.
The biggest task that the attorney usually does is to prepare, type, and file the petition. The petition is composed of several forms that have to be filed with the bankruptcy court. The number of pages composed in the petition usually depends on the number of creditors one has. If the number is high, the petition can be as long as 60 pages.
The client is normally awarded the opportunity to review the document before the petition is presented in court. This ensures a list of all properties possessed by the debtors is included in the petition and all mistakes, if any, are corrected. Also, before the petition is filed, the client must sign it.
There are two major kinds of bankruptcy and based on the state one is in, they may decide to file for any. Chapter 7 and chapter 13 are the two classes of bankruptcy. Wage earner plan is another name for chapter 13 insolvency. With chapter 13, people with a regular income make a repayment plan to settle all or a section of the debts they owe creditors.
The debtor proposes a repayment plan that they will follow to repay creditors in installments. The repayment period usually spans between three and five years. On the other hand, chapter 7 bankruptcy is a bit harsher. In this case, the bankruptcy trustees gather all possessions owned by the debtor and sell them off so as to repay creditors. There is a code that must be followed during all of these transactions. In both cases, it is important to have legal counsel.
These lawyers have a specialty in using bankruptcy laws to negotiate cases on behalf of clients. In a chapter 7 case, these lawyers help to eliminate all debts that one may have while in a chapter 13 case, they help to reorganize debts. The lawyers are entrusted with a wide range of responsibilities and duties.
The lawyer spends time assessing the financial position of the client during initial consultations. This assessment helps the law to know any financial goals the client may have. The initial consultation provides a chance for the client and lawyer to talk about and explore any debt relief options available. Based on the discussion, the lawyer may advice for or against filing for insolvency and which chapter to file for.
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.
The biggest task that the attorney usually does is to prepare, type, and file the petition. The petition is composed of several forms that have to be filed with the bankruptcy court. The number of pages composed in the petition usually depends on the number of creditors one has. If the number is high, the petition can be as long as 60 pages.
The client is normally awarded the opportunity to review the document before the petition is presented in court. This ensures a list of all properties possessed by the debtors is included in the petition and all mistakes, if any, are corrected. Also, before the petition is filed, the client must sign it.
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