Most people live their lives with debt, which is not bad. When the amount of debt accumulated by a single person becomes unsustainable, however, they may start experiencing financial problems. If the income earned by the debtor is not enough to service those debts, the only option might be to renegotiate the debt or declare bankruptcy. Chapter 7 Oakland residents should know, is the default type of bankruptcy. Read on to learn more.
A trustee is usually appointed when the court receives a bankruptcy petition. This is usually a legal or financial expert with a lot of experience handling similar cases. The trustee is tasked with carrying out due diligence to ensure the debtor truly qualifies for this option. If not, they will recommend the most suitable option.
This is a great option for consumers who have an unreliable source of income and few valuable assets to speak of. After all, they will not lose much when their assets are liquidated while their income may not qualify them for other bankruptcy options. The beauty of the entire process is that the debtor can become debt-free immediately.
Consumers should know that bankruptcy has pros and cons. The main con is that it will become public knowledge, so anyone who has interest can find out about your status. For instance, your loan applications will be rejected when lenders run a credit check on you.
Bankruptcy is normally put on the credit report of the debtor, and stays there for several years. This will taint the credit score of the debtor. As a result, they will not be able to get a better job or rent a decent house. These are some of the things that debtors should know about before declaring bankruptcy.
It is not automatic that once you declare bankruptcy under this chapter the court will approve it. The court normally hires a trustee to look into the financial position of the debtor. If they discover that the debtor has few valuable assets and a considerable income, a Chapter 13 bankruptcy will be recommended instead. This is because creditors can recover more money from regular payments than from liquidation of assets.
One important thing that consumers should know when filing for bankruptcy under this option is that both individual consumers and businesses can qualify. It is commonly referred to as the default form of bankruptcy. If the debtor defaults on chapters 11 or 13, this option will come into effect automatically.
Once you have filed the required paperwork with an Oakland, CA, bankruptcy court, you can expect to get a number of legal protections. The first one is that creditors will be barred from taking any action to recover their debts. For instance, they will be barred from communicating with you in any way or adding penalties to the outstanding debts. Furthermore, any money that is unpaid after the proceeds of the auction have been distributed will be forgiven. This means the debtor can become debt-free in a convenient way.
A trustee is usually appointed when the court receives a bankruptcy petition. This is usually a legal or financial expert with a lot of experience handling similar cases. The trustee is tasked with carrying out due diligence to ensure the debtor truly qualifies for this option. If not, they will recommend the most suitable option.
This is a great option for consumers who have an unreliable source of income and few valuable assets to speak of. After all, they will not lose much when their assets are liquidated while their income may not qualify them for other bankruptcy options. The beauty of the entire process is that the debtor can become debt-free immediately.
Consumers should know that bankruptcy has pros and cons. The main con is that it will become public knowledge, so anyone who has interest can find out about your status. For instance, your loan applications will be rejected when lenders run a credit check on you.
Bankruptcy is normally put on the credit report of the debtor, and stays there for several years. This will taint the credit score of the debtor. As a result, they will not be able to get a better job or rent a decent house. These are some of the things that debtors should know about before declaring bankruptcy.
It is not automatic that once you declare bankruptcy under this chapter the court will approve it. The court normally hires a trustee to look into the financial position of the debtor. If they discover that the debtor has few valuable assets and a considerable income, a Chapter 13 bankruptcy will be recommended instead. This is because creditors can recover more money from regular payments than from liquidation of assets.
One important thing that consumers should know when filing for bankruptcy under this option is that both individual consumers and businesses can qualify. It is commonly referred to as the default form of bankruptcy. If the debtor defaults on chapters 11 or 13, this option will come into effect automatically.
Once you have filed the required paperwork with an Oakland, CA, bankruptcy court, you can expect to get a number of legal protections. The first one is that creditors will be barred from taking any action to recover their debts. For instance, they will be barred from communicating with you in any way or adding penalties to the outstanding debts. Furthermore, any money that is unpaid after the proceeds of the auction have been distributed will be forgiven. This means the debtor can become debt-free in a convenient way.
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