Pages

Thursday, 30 August 2018

How To File A Chapter 13 Monterey

By Kevin Young


It is very easy for the average consumer to get too deep in debt to get out of it alone. For instance, you could charge multiple credit cards over a period of several years as you accrue more bad debt. You could also take out a personal loan to renovate the house and borrow payday loans to bridge a cash shortfall in the course of the month. Over time, your burden of debt may become too heavy for you to bear. As a result, you may be forced to file for chapter 13 Monterey.

This bankruptcy option is only meant for individual debtors. To qualify, you must have a reliable source of income as well as personal debts that meet the threshold specified in bankruptcy laws. With this option, the debtor only needs to pay regular monthly payments for several years to get debt forgiveness.

There are several types of debt obligations that consumers should know can never be forgiven. For starters, child support, student loans and spousal support are all debts that must be serviced without default. Taxes must also be paid no matter what. Before filing for bankruptcy, therefore, be sure to check if these debt obligations account for a huge portion of your outstanding debts.

It is important to note that bankruptcy can turn your life upside down. Therefore, you should take your time to consider all the other available options before choosing to become bankrupt. When you are bankrupt, lenders will turn down all your loan applications for several years. Getting a promotion at work or getting a better job will also be hard. In fact, there are some professions that require the incumbent not to be bankrupt, so you may lose your job if you hold such a job.

With this type of bankruptcy, the debtor gets to retain all their assets as there is no liquidation to pay off loans. This is good news for debtors. However, the debtor has to honor the repayment plan approved by the court. Otherwise, their assets will have to be liquidated because the trustee will initiate chapter 7 proceedings after the default.

It takes several years to get rid of bankruptcy from your credit report and other public records. This means that the moment you decide to file for bankruptcy, your life may take a turn for the worst as getting a better job, promotion or affordable credit will be next to impossible. That said, bankruptcy will damage your reputation, so you need to be sure that this is the only available option before signing the necessary paperwork.

The best thing about this chapter is that you will only be required to make small monthly payments towards offsetting your debts for several years. After that, the outstanding balance of your debts will be written off. You can pay as little as $400 a month to have a debt of $150,000 forgiven. As you can see, this option has many benefits.

It is always recommended you hire a bankruptcy lawyer when planning to declare bankruptcy. This is crucial because experienced lawyers know how to get the desired results for clients. Therefore, you should compare the experiences of the bankruptcy lawyers working in Monterey and give preference to the most experienced bankruptcy lawyers in the city. Fortunately, there are many of them, so you will not have a difficult time identifying the right one for your needs.




About the Author:



No comments:

Post a Comment