If you are interested in filing for bankruptcy, nothing will be as important as educating yourself about the available options. The majorities of people who qualify for debt relief choose between two distinct Chapters which are Chapter 7 and 13. Even so, there are various other options that are ideal for municipalities, farmers and businesses. If you want to file for bankruptcy Santa Cruz is an ideal place to begin research for a top rated attorney.
Before you get down on filing a petition, you may want to get a better understanding of the different forms of bankruptcy. First, there is Chapter 7 and it is also referred to as liquidation. With this, an individual or entity is allowed to surrender its assets in in return get a chance to legally get rid of most debts. Your attorney will do a means test to determine whether you qualify for debt relief under the Chapter 7 clauses.
Municipalities such as cities, counties, towns and district schools can also find themselves drowning in debt. In case this happens, they can choose to seek protection under Chapter 9. With this, they need to plan on how they can get their debts repaid without having to let go of certain assets.
Chapter 11 is ideal for wealthy individuals and businesses. It is also called reorganization and a business is allowed to retain assets as well as control of operations while settling debts according to the approved debt reorganization plan. What makes Chapter 11 only ideal for businesses as well as wealthy individuals is the fact that it is both complex and expensive.
Another chapter under the bankruptcy laws is Chapter 12. This is meant for fishermen and farmers that have a regular income. Filing a petition would therefore allow them to reorganize their debts over a span of three years. In this case, the debts ought to be settled before the three years are over.
Yet another common form of bankruptcy is Chapter 13. It allows individuals or entities to get their debts restructured. Normally, creditors are not considered equal and while some of them will be fully paid together with the accumulated interest, others will only get paid or partially paid. Your attorney can look into the kinds of debts you have and inform you about the possible ruling that will be made by the courts.
The need to consult with an attorney before filing a petition should not be underestimated. A competent expert can help you understand the bankruptcy option that is most ideal for your specific situation. This will be done after your current financial situation is looked into thoroughly. Filing under the wrong Chapter may not offer you the solutions you are after.
Then again, it makes sense to get assistance, especially when handling the relevant paperwork. It remains crucial for you to understand that even a minor mistake can lead to the dismissal of your petition. Apart from saving you from the horrors of making costly mistakes, your attorney will also ensure that you are well represented in court.
Before you get down on filing a petition, you may want to get a better understanding of the different forms of bankruptcy. First, there is Chapter 7 and it is also referred to as liquidation. With this, an individual or entity is allowed to surrender its assets in in return get a chance to legally get rid of most debts. Your attorney will do a means test to determine whether you qualify for debt relief under the Chapter 7 clauses.
Municipalities such as cities, counties, towns and district schools can also find themselves drowning in debt. In case this happens, they can choose to seek protection under Chapter 9. With this, they need to plan on how they can get their debts repaid without having to let go of certain assets.
Chapter 11 is ideal for wealthy individuals and businesses. It is also called reorganization and a business is allowed to retain assets as well as control of operations while settling debts according to the approved debt reorganization plan. What makes Chapter 11 only ideal for businesses as well as wealthy individuals is the fact that it is both complex and expensive.
Another chapter under the bankruptcy laws is Chapter 12. This is meant for fishermen and farmers that have a regular income. Filing a petition would therefore allow them to reorganize their debts over a span of three years. In this case, the debts ought to be settled before the three years are over.
Yet another common form of bankruptcy is Chapter 13. It allows individuals or entities to get their debts restructured. Normally, creditors are not considered equal and while some of them will be fully paid together with the accumulated interest, others will only get paid or partially paid. Your attorney can look into the kinds of debts you have and inform you about the possible ruling that will be made by the courts.
The need to consult with an attorney before filing a petition should not be underestimated. A competent expert can help you understand the bankruptcy option that is most ideal for your specific situation. This will be done after your current financial situation is looked into thoroughly. Filing under the wrong Chapter may not offer you the solutions you are after.
Then again, it makes sense to get assistance, especially when handling the relevant paperwork. It remains crucial for you to understand that even a minor mistake can lead to the dismissal of your petition. Apart from saving you from the horrors of making costly mistakes, your attorney will also ensure that you are well represented in court.
About the Author:
You can get valuable tips on how to pick a bankruptcy Santa Cruz attorney and more information about an experienced lawyer at http://www.centralcoastbankruptcy.com now.
No comments:
Post a Comment