Bankruptcy Lawyers
Are you up to your eyeballs in debt and there seems to be no way out? Unexpected medical bills, credit card debt, loss of job, and divorce can cause one to have more bills than money to pay those bills, resulting in an exorbitant amount of stain and stress. For individuals or families that are in desperate financial need, bankruptcy may be their only option. Personal bankruptcy is divided into two options: Chapter 7 and Chapter 13
Chapter 7 bankruptcy
Chapter 7 is a liquidation of assets, in that chapter 7 bankruptcy will require all non-exempt property to be sold and the proceeds will be used to payback one’s creditors. Those seeking chapter 7 bankruptcy usually have nothing to lose, in that they no major assets. In essence, chapter 7 bankruptcy gives individuals a fresh start, in which one’s debts are usually discharged within months of filing. Chapter 7 bankruptcy is also the only personal bankruptcy option for those individuals who do not have regular income.
Chapter 13
Chapter 13 Bankruptcy Attorney Los Angeles is reorganization, in which individuals filing chapter 13 desire to repay their debts. One’s debts generally have with newly secured terms, such as lower interest rates or not interest at all. The payment plan designed for individuals claiming chapter 13, is generally set up so that all debt included in the bankruptcy will be paid off in three to five years. In order to qualify for chapter 13, individuals filing must have steady income so that regular payments can be made towards the payment plan. Individuals reading this may be questioning, as to why someone would choose to pay back their debtors (chapter 13) over that of not having to pay back debtors (chapter 7). The answer it that, chapter 13 is different than chapter 7, in that individuals do not need to liquidate their assets, in other words individuals are able to keep their property and possessions under chapter 13.
So, how does one being the process of personal bankruptcy? It is wise to consult a bankruptcy attorney, as they are experts in knowing federal law and will make the process easy. An expert chapter 7 or Chapter 13 bankruptcy lawyer will walk one through the process and file all necessary paperwork. While it is possible to file bankruptcy on one’s own, it is most certainly not recommended. The truth is that, most individuals simply do not understand federal bankruptcy law and filing bankruptcy on one’s own can have devastating consequences. Hiring a bankruptcy lawyer is money worth spent, as bankruptcy attorneys are professionals that are there to make the whole process of bankruptcy as smooth and streamlined as possible.