Having to file for bankruptcy is never an easy decision. There are different reasons that can make one to file for bankruptcy, including bade investment and spending decisions, illness, lack of employment, and bad luck among many others. When one files with the court system as being bankrupt, they receive protection from harassment by creditors. The filing also helps to prevent foreclosure, repossession of property by creditors among others. When in need of Bankruptcy attorney Santa Cruz should be visited.
Two major types of bankruptcy exist, and one can choose to file any of them depending on their situation. The two categories are chapter 7 and chapter 13. Chapter13 is also referred to as wage earner plans. Wage earner plan is meant to allow individuals who have a regular income to come up with a plan for repaying all or part of the debts the owe creditors.
A repayment plan is proposed by the debtor and it has to be adhered to while paying debts in installments. About three to five years is normally the repayment duration allowed. Chapter 7 bankruptcy is usually harsher and dangerous. Bankruptcy trustees collect properties belonging to the debtor so that they can sell them and recoup the money owed to creditors. There is a specific code that should be followed during this process. One should have legal representation when they file for being bankrupt.
These lawyers have a specialty in using bankruptcy laws to negotiate cases on behalf of clients. In a chapter 7 case, these lawyers help to eliminate all debts that one may have while in a chapter 13 case, they help to reorganize debts. The lawyers are entrusted with a wide range of responsibilities and duties.
The lawyer will usually asses the financial situation when the client comes for initial consultation. During this time, the lawyer is able to understand the financial goals the client has as well as discuss the various debt reprieve options available. These attorneys help find out if the best option is to file for insolvency. It bankruptcy is the best option then they will decide on the best chapter to file.
When initial consultation is complete, the two parties will talk about legal fees and other payments. The lawyer begins working on behalf of the client if the two reach an agreement. Part of the work they do is to accept collection calls for their client. All calls by creditors are directed at the attorney and not the client. Before the debtor files for bankruptcy, creditors still have the right to contact them.
The biggest task that the attorney usually does is to prepare, type, and file the petition. The petition is composed of several forms that have to be filed with the bankruptcy court. The number of pages composed in the petition usually depends on the number of creditors one has. If the number is high, the petition can be as long as 60 pages.
Before the petition is filed, the client is usually given a chance to review the document. This is meant to make sure that all assets owned by the debtors have been listed. It also ensures that no mistakes have been made. The client must also sign the petition before it is filed.
Two major types of bankruptcy exist, and one can choose to file any of them depending on their situation. The two categories are chapter 7 and chapter 13. Chapter13 is also referred to as wage earner plans. Wage earner plan is meant to allow individuals who have a regular income to come up with a plan for repaying all or part of the debts the owe creditors.
A repayment plan is proposed by the debtor and it has to be adhered to while paying debts in installments. About three to five years is normally the repayment duration allowed. Chapter 7 bankruptcy is usually harsher and dangerous. Bankruptcy trustees collect properties belonging to the debtor so that they can sell them and recoup the money owed to creditors. There is a specific code that should be followed during this process. One should have legal representation when they file for being bankrupt.
These lawyers have a specialty in using bankruptcy laws to negotiate cases on behalf of clients. In a chapter 7 case, these lawyers help to eliminate all debts that one may have while in a chapter 13 case, they help to reorganize debts. The lawyers are entrusted with a wide range of responsibilities and duties.
The lawyer will usually asses the financial situation when the client comes for initial consultation. During this time, the lawyer is able to understand the financial goals the client has as well as discuss the various debt reprieve options available. These attorneys help find out if the best option is to file for insolvency. It bankruptcy is the best option then they will decide on the best chapter to file.
When initial consultation is complete, the two parties will talk about legal fees and other payments. The lawyer begins working on behalf of the client if the two reach an agreement. Part of the work they do is to accept collection calls for their client. All calls by creditors are directed at the attorney and not the client. Before the debtor files for bankruptcy, creditors still have the right to contact them.
The biggest task that the attorney usually does is to prepare, type, and file the petition. The petition is composed of several forms that have to be filed with the bankruptcy court. The number of pages composed in the petition usually depends on the number of creditors one has. If the number is high, the petition can be as long as 60 pages.
Before the petition is filed, the client is usually given a chance to review the document. This is meant to make sure that all assets owned by the debtors have been listed. It also ensures that no mistakes have been made. The client must also sign the petition before it is filed.
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