Chapter 13 bankruptcy in Hemet
Our skilled team of
bankruptcy attorneys is committed to working hard on your behalf throughout the
duration of your case, despite the fact that formal bankruptcy proceedings
through the court system can become complicated. Due to our extensive experience
working with clients in and around the city of Hemet, we have the knowledge and
professionalism necessary to effectively plan your case, assisting you in
navigating through this difficult time and putting you in the best possible
position to begin rebuilding your financial life.
Making the decision to file
for bankruptcy in order to resolve your financial troubles is a significant
decision. In most cases, bankruptcy should only be considered after you've
exhausted all other alternatives. While the procedure has the potential to
deliver significant benefits, it also has certain unintended drawbacks.
The most major negative
effect is that it can negatively impact your credit for a period of seven to
ten years. Moreover, it may make it more difficult for you to secure certain
work possibilities in the future. However, in other cases, bankruptcy is the
only alternative available to a person.
There are several signs
that you may need to file for bankruptcy, including: • There is no foreseeable
way that you will be able to resolve your debt problems in less than five
years; • You are only able to make minimum payments on your bills; • You are
paying overdraft fees every month; • You are receiving calls from debt
collection agencies on a regular basis; and • You have spent more than the
maximum amounts allowed on your credit cards.
Understanding
Your Bankruptcy and Reorganization Alternatives
Personal bankruptcy can be
classified into two types: Chapter 7 and Chapter 13 bankruptcy.
• Bankruptcy under Chapter
7: This type of bankruptcy allows debtors to discharge all or a portion of
their debt once their liquid assets have been utilised to satisfy some of their
creditors, depending on the circumstances. The individual has to demonstrate
that their income is less than the median family income in the state in which
they live to be considered for this programme. A person who fails the
"means test" is automatically disqualified from filing for Chapter 7
bankruptcy.
Chapter 13 bankruptcy in Hemet, debtors are given the opportunity to repay all or a portion of their debt through a repayment plan that lasts three to five years, depending on their circumstances. An individual filing for bankruptcy must submit a suggested plan for how he or she expects to repay his or her creditors before a bankruptcy judge during a bankruptcy hearing. If the plan is authorised, the individual will be able to carry it out. After the project is completed, any leftover debt is forgiven.
Small firms and individuals
who file under Chapter 11 must follow a different and more streamlined set of
procedures than those who file under Chapter 7. In any case, a Chapter 11
filing necessitates the hiring of a business-savvy attorney who can devise a
reorganisation plan and deal with any combative issues that arise.
Economic turmoil can be
stressful, but there are alternatives that allow you to get out from under a
mountain of debt while keeping most, if not all, of your valuable possessions.
To learn more about what we can do to help you or your business get a fresh start,
contact the Los Angeles Bankruptcy Attorney Group today.
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