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.
This type of bankruptcy has many advantages, but it also has shortcomings. For instance, if the debtor defaults on the repayment plan, the trustee will convert that option into liquidation under chapter 7. The trustee will simply start liquidating the assets of the debtor to pay off their debts. To avoid this, debtors need to hire a competent lawyer and strive to make the required payments.
The monthly payments approved by the court under this bankruptcy option must be sent to the trustee, not directly to creditors. This is because the relationship between the creditor and debtor ceases to exist the moment the debtor is declared bankrupt. Any direct communication will be considered illegal and actionable in court.
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.
This type of bankruptcy has many advantages, but it also has shortcomings. For instance, if the debtor defaults on the repayment plan, the trustee will convert that option into liquidation under chapter 7. The trustee will simply start liquidating the assets of the debtor to pay off their debts. To avoid this, debtors need to hire a competent lawyer and strive to make the required payments.
The monthly payments approved by the court under this bankruptcy option must be sent to the trustee, not directly to creditors. This is because the relationship between the creditor and debtor ceases to exist the moment the debtor is declared bankrupt. Any direct communication will be considered illegal and actionable in court.
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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