Bankruptcy is the legal process in which there businesses or individuals are helped to eliminate part of or all their debt. It will also help in repayment of some of what the person or business owes. While it is a process that brings some relief, it is important to understand that it comes with serious effects in the long run and more so on credit. It can remain on the credit report of an individual for as long as a decade. In considering bankruptcy Oakland residents should be versed with what it involves.
The process is a complex one and an individual might not be able to navigate through on their own. It is the reason most people involve services of attorneys. Attorneys are well versed with all that is required for the process and regulations that govern it. There are a number of requirements that one will have to meet before they are able to file the petition. Most importantly, they should demonstrate they can repay their debts. It is also a requirement to go for credit counseling.
After one decides to move forward with the proceedings, they have to decide what to file for. There is the option of going for chapter 7 or chapter 13. Both are able to help in elimination of unsecured debts and halt repossession or foreclosure. With either of these options, one will be expected to take care of court costs and attorney fees. This is inasmuch as they work in different ways.
There are consequences when one files for bankruptcy. Both chapter 13 and 7 will normally require that the person gives up their possessions to be put up for sale for repayment of their debts. Under certain circumstances, the person loses their possessions like vehicles, antique furnishings and jewelry. There is also possibility that your bankruptcy could affect other individuals financially. If for instance your parents co-sign a loan for a car on your behalf, they are still held responsible for some of that debt if you are declared bankrupt.
Filing that one is bankrupt damages their credit. Bankruptcies are considered as negative information on the credit report of a person. It will therefore affect the way lenders view them. A creditor will not offer a bankrupt person any credit and if they have to, the rates of interest will be very high. Depending on what type one filed for, the information could be in their report for up to 10 years.
There are some alternatives before one decides to file that they are bankrupt. Most of the options also have an effect on credit but not as badly. They will also allow the individual to retain their possessions. One of the options is to go for a debt management plan. This is whereby a counselor works with your creditors to help in arranging a plan that is workable for repayment of what is owed.
For some people it is easier approaching creditors to see whether they can agree to a manageable plan of repayment. The other option would be to go for a debt consolidation loan. This is whereby one takes a loan to repay debts and they are left with a single loan to service.
The entire process of filing a bankruptcy petition can be costly and lengthy. One needs to know what it involves before beginning. With an attorney hired for the services, it will be easier get through it.
The process is a complex one and an individual might not be able to navigate through on their own. It is the reason most people involve services of attorneys. Attorneys are well versed with all that is required for the process and regulations that govern it. There are a number of requirements that one will have to meet before they are able to file the petition. Most importantly, they should demonstrate they can repay their debts. It is also a requirement to go for credit counseling.
After one decides to move forward with the proceedings, they have to decide what to file for. There is the option of going for chapter 7 or chapter 13. Both are able to help in elimination of unsecured debts and halt repossession or foreclosure. With either of these options, one will be expected to take care of court costs and attorney fees. This is inasmuch as they work in different ways.
There are consequences when one files for bankruptcy. Both chapter 13 and 7 will normally require that the person gives up their possessions to be put up for sale for repayment of their debts. Under certain circumstances, the person loses their possessions like vehicles, antique furnishings and jewelry. There is also possibility that your bankruptcy could affect other individuals financially. If for instance your parents co-sign a loan for a car on your behalf, they are still held responsible for some of that debt if you are declared bankrupt.
Filing that one is bankrupt damages their credit. Bankruptcies are considered as negative information on the credit report of a person. It will therefore affect the way lenders view them. A creditor will not offer a bankrupt person any credit and if they have to, the rates of interest will be very high. Depending on what type one filed for, the information could be in their report for up to 10 years.
There are some alternatives before one decides to file that they are bankrupt. Most of the options also have an effect on credit but not as badly. They will also allow the individual to retain their possessions. One of the options is to go for a debt management plan. This is whereby a counselor works with your creditors to help in arranging a plan that is workable for repayment of what is owed.
For some people it is easier approaching creditors to see whether they can agree to a manageable plan of repayment. The other option would be to go for a debt consolidation loan. This is whereby one takes a loan to repay debts and they are left with a single loan to service.
The entire process of filing a bankruptcy petition can be costly and lengthy. One needs to know what it involves before beginning. With an attorney hired for the services, it will be easier get through it.
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If you are searching for information about bankruptcy Oakland residents can come to our web pages today. More details are available at http://www.centralcoastbankruptcy.com now.
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