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 a number of consequences of filing for bankruptcy. Both chapter 7 and 13 will require that one gives up possessions for sale so that they are able to pay creditors. Under some circumstances, one could end up losing real estate, jewelry, antique furnishings and vehicles. Your bankruptcy is also able to affect other people financially. For instance, if your parents did co-sign a car loan for you, they might still be held responsible for some of the debt in case 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 various alternatives before one decides that they will be filing that they are bankrupt. The options also have some effects on credit but not that much. The individual will be allowed to retain all of their possessions. Debt management plans are one of the options to go for. The counselor will work with creditors to help in arrangement of some plan which is workable to repay whatever 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 process of one filing that they are bankrupt is one that can go for a long time and costs money. The most important thing for you to know is that there are consequences. This is why attorney services and advice will be key.
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 a number of consequences of filing for bankruptcy. Both chapter 7 and 13 will require that one gives up possessions for sale so that they are able to pay creditors. Under some circumstances, one could end up losing real estate, jewelry, antique furnishings and vehicles. Your bankruptcy is also able to affect other people financially. For instance, if your parents did co-sign a car loan for you, they might still be held responsible for some of the debt in case 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 various alternatives before one decides that they will be filing that they are bankrupt. The options also have some effects on credit but not that much. The individual will be allowed to retain all of their possessions. Debt management plans are one of the options to go for. The counselor will work with creditors to help in arrangement of some plan which is workable to repay whatever 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 process of one filing that they are bankrupt is one that can go for a long time and costs money. The most important thing for you to know is that there are consequences. This is why attorney services and advice will be key.
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