When you have decided that you are not able to pay your debts, it is important you look for a competent lawyer to help you explore all your options. For instance, you can become bankrupt to get rid of your debt. Bankruptcy Oakland residents should know, is not always the best option, so consumers need to consider all the available options to ensure they can make an informed decision.
One of the most common options for businesses and individual debtors is chapter 7. To qualify for this option, there is only one requirement that debtors will be required to satisfy. You must prove that you do not have a reliable income to be able to service your debts. Usually, assets belonging to the debtor are liquidated to offset their credit accounts. The liquidation is usually done through a public auction, which can be embarrassing for the debtor and their family.
Chapter 11 is an option that has been designed specifically for businesses. With this chapter, a business or company only needs to show that they have a lot of bad debt and a reliable income source they can use to service their debt under improved terms and conditions. If approved, the management of the business will have to come up with a payment plan based on their disposable income. After a few years, all unpaid debts will be forgiven.
Chapter 13 is a type of bankruptcy that is meant specifically for individual debtors. This chapter entails restructuring or reorganization of personal debts to make it easier for the debtor to make payments. Usually, the debtor is required to come up with a convenient payment plan for them based on their disposable income. The repayment period will be spread out over several years, say 3-4 years. After that, any unpaid debts will be forgiven.
It is always recommended you hire a competent lawyer to help you deal the entire process. After all, there is need to have legal jargon defined. You will also need help with your paperwork. Therefore, you should take your time to compare the experience, reputation and legal fees of an attorney before making a decision. The most experienced lawyers should always be given priority consideration.
After becoming bankrupt, getting a cheap loan will become your biggest challenge. However, you will also not be able to rent or lease a car. Even renting a house or business premise will become a monumental task. In some cases, you may have your job application rejected, so you can forget about promotions or getting a better job.
There are many debts that cannot be written off. The first is student loan debts. If you have a lot of student loans, you will have to continue servicing them. Child support must also be paid unless the family court makes amendments to the divorce settlement agreement. Spousal support must also be paid in full without delays. Therefore, you should know what kind of debt forgiveness you are going to get before you decide to become bankrupt.
When you file a chapter 7, you should know that you will have to wind up your business. In case you are an individual debtor, the public auction will taint the image and reputation of your family. Therefore, you should consider other options before you decide to file the necessary paperwork.
One of the most common options for businesses and individual debtors is chapter 7. To qualify for this option, there is only one requirement that debtors will be required to satisfy. You must prove that you do not have a reliable income to be able to service your debts. Usually, assets belonging to the debtor are liquidated to offset their credit accounts. The liquidation is usually done through a public auction, which can be embarrassing for the debtor and their family.
Chapter 11 is an option that has been designed specifically for businesses. With this chapter, a business or company only needs to show that they have a lot of bad debt and a reliable income source they can use to service their debt under improved terms and conditions. If approved, the management of the business will have to come up with a payment plan based on their disposable income. After a few years, all unpaid debts will be forgiven.
Chapter 13 is a type of bankruptcy that is meant specifically for individual debtors. This chapter entails restructuring or reorganization of personal debts to make it easier for the debtor to make payments. Usually, the debtor is required to come up with a convenient payment plan for them based on their disposable income. The repayment period will be spread out over several years, say 3-4 years. After that, any unpaid debts will be forgiven.
It is always recommended you hire a competent lawyer to help you deal the entire process. After all, there is need to have legal jargon defined. You will also need help with your paperwork. Therefore, you should take your time to compare the experience, reputation and legal fees of an attorney before making a decision. The most experienced lawyers should always be given priority consideration.
After becoming bankrupt, getting a cheap loan will become your biggest challenge. However, you will also not be able to rent or lease a car. Even renting a house or business premise will become a monumental task. In some cases, you may have your job application rejected, so you can forget about promotions or getting a better job.
There are many debts that cannot be written off. The first is student loan debts. If you have a lot of student loans, you will have to continue servicing them. Child support must also be paid unless the family court makes amendments to the divorce settlement agreement. Spousal support must also be paid in full without delays. Therefore, you should know what kind of debt forgiveness you are going to get before you decide to become bankrupt.
When you file a chapter 7, you should know that you will have to wind up your business. In case you are an individual debtor, the public auction will taint the image and reputation of your family. Therefore, you should consider other options before you decide to file the necessary paperwork.
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