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Friday, 29 December 2017

What You Need To Know About Chapter 7 Oakland

By Virginia Roberts


Consumers have certain habits, which if left unchecked, can lead to bankruptcy. For instance, many people often charge their credit cards whenever they come across something nice they would like to have. Others normally borrow personal loans and car loans they are not able to afford to repay comfortably. With time, these habits can lead to bankruptcy. When you want to file for bankruptcy, be sure to hire a chapter 7 Oakland lawyer to advise and guide you throughout the process.

This type of bankruptcy provides for liquidation of assets owned by the debtor. The proceeds of the sale, no matter how meager, is what is used to settle their debts. After the funds have been distributed among the creditors, all unpaid debts are forgiven.

It is important to note this option is meant for both individual consumers and businesses, so anyone can apply. The only requirement that applicants must fulfill is to provide proof of lack of sufficient income. The debts in question must also be acceptable under the bankruptcy act. The value of non-exempt assets owned by the debtor does not matter.

This is the easiest type of bankruptcy to qualify for, which makes it the most popular. As is the case with other bankruptcy chapters, this option will still taint your credit history. This is because the bankruptcy entry will be added to your credit history. This will prevent you from getting a decent job, affordable loans or renting a house/car. As a result, your life will be adversely affected.

When you are declared bankrupt under a different bankruptcy provision, such as chapters 13 or 11, you have to honor the terms and conditions of that bankruptcy option. If not, your assets will be liquidated under this bankruptcy chapter. After all, chapter 7 is considered the default type of bankruptcy.

After the court receives the petition, a trustee will be appointed to represent the court and oversee the process. After the appointment, the trustee will start adding up your debts, assets and liabilities. All non-exempt assets will be valued and preparations made for the auction. After liquidation of these items, the funds will be distributed proportionately among your creditors.

While the trustee may be a neutral party, they can commit illegalities, such as selling items that are exempt by state or federal bankruptcy exemptions. To ensure that these assets are not touched, you should have your attorney by your side. The best thing about hiring a competent lawyer is that they can negotiate with the trustee to ensure that any non-exempt item with little monetary value does not get auctioned off.

When searching for a suitable attorney, the key factor of consideration is experience. You want to be represented by the most experienced attorney you can find. The ideal attorney should also have a great reputation in the industry and charge competitive rates for their services. Be sure to start your search with a shortlist of the top-rated lawyers operating in the city. You can easily narrow down the search by comparing these attorneys to identify the best one for your needs.




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