Distressed consumers with too much bad debt can get legal protection through different types of bankruptcies. By petitioning the court to declare them bankrupt, debtors can get legal protections that will not only give them peace of mind, but also provide a pathway for debt forgiveness. When thinking about bankruptcy Santa Cruz residents should take their time to look for a suitable lawyer to advise them appropriately.
When planning to become bankrupt, you have to spend some time looking for an experienced lawyer who has handled many similar cases in the past to advise you on what you need to do, the best chapter to use and guide you when filling out the necessary paperwork. Having competent legal counsel by your side will go a long way in ensuring you get the desired results.
There are three main types of bankruptcies. These are chapters 13, 11 and 7. All these chapters are meant for different types of debtors, so be sure to learn more about them before choosing any particular chapter. Whichever option you choose, you can expect your debts to be forgiven and creditors prevented from harassing you in any way in a bid to recover their funds.
Individual consumers with a lot of debt can use either chapter 7 or chapter 13. Chapter 7 is basically liquidation while chapter 13 provides for debt restructuring, and does not involve liquidation of assets owned by the debtor. However, you can only qualify for the latter if you have a stable source of income. Liquidation under chapter seven is only for consumers without a reliable income source.
Chapter 7 and chapter 11 can be used by corporate debtors with a lot of unmanageable debts. In case of a chapter 7, the assets owned by the business will be sold to recover funds to pay off their debts. In case of a chapter 11, the business must prove that they have sufficient income to repay part of their debts through regular monthly installments. In this option, no assets are liquidated.
There are several major benefits of using bankruptcy chapters to deal with your debt problems. The first is that most of your debts will be written off. Secondly, the courts will prevent all your creditors from communicating with you directly. Any communication must go through the trustee. This means that you will be able to get peace of mind.
While you can get protection from creditors and debt forgiveness by becoming bankrupt, there are some cons that you should know about. For starters, you will be blacklisted by creditors. After all, your credit report will show that you are bankrupt. This means that no lender will be willing to lend you some money. Those that may be willing to do so may quote higher-than-normal interest rates and processing fees.
There are certain jobs that you cannot get if you are bankrupt. Similarly, there are some rental properties that you cannot rent if you are bankrupt. Since most car rental companies nowadays run credit checks on potential clients, you may also not be able to rent a car. As you can see, bankruptcy can turn your life upside down. After weighing all the pros and cons of bankruptcy with the help of a lawyer, you will be able to make an informed decision.
When planning to become bankrupt, you have to spend some time looking for an experienced lawyer who has handled many similar cases in the past to advise you on what you need to do, the best chapter to use and guide you when filling out the necessary paperwork. Having competent legal counsel by your side will go a long way in ensuring you get the desired results.
There are three main types of bankruptcies. These are chapters 13, 11 and 7. All these chapters are meant for different types of debtors, so be sure to learn more about them before choosing any particular chapter. Whichever option you choose, you can expect your debts to be forgiven and creditors prevented from harassing you in any way in a bid to recover their funds.
Individual consumers with a lot of debt can use either chapter 7 or chapter 13. Chapter 7 is basically liquidation while chapter 13 provides for debt restructuring, and does not involve liquidation of assets owned by the debtor. However, you can only qualify for the latter if you have a stable source of income. Liquidation under chapter seven is only for consumers without a reliable income source.
Chapter 7 and chapter 11 can be used by corporate debtors with a lot of unmanageable debts. In case of a chapter 7, the assets owned by the business will be sold to recover funds to pay off their debts. In case of a chapter 11, the business must prove that they have sufficient income to repay part of their debts through regular monthly installments. In this option, no assets are liquidated.
There are several major benefits of using bankruptcy chapters to deal with your debt problems. The first is that most of your debts will be written off. Secondly, the courts will prevent all your creditors from communicating with you directly. Any communication must go through the trustee. This means that you will be able to get peace of mind.
While you can get protection from creditors and debt forgiveness by becoming bankrupt, there are some cons that you should know about. For starters, you will be blacklisted by creditors. After all, your credit report will show that you are bankrupt. This means that no lender will be willing to lend you some money. Those that may be willing to do so may quote higher-than-normal interest rates and processing fees.
There are certain jobs that you cannot get if you are bankrupt. Similarly, there are some rental properties that you cannot rent if you are bankrupt. Since most car rental companies nowadays run credit checks on potential clients, you may also not be able to rent a car. As you can see, bankruptcy can turn your life upside down. After weighing all the pros and cons of bankruptcy with the help of a lawyer, you will be able to make an informed decision.
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You can get valuable tips for picking a bankruptcy Santa Cruz attorney and more information about an experienced lawyer at http://www.centralcoastbankruptcy.com now.
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