Bankruptcy refers to the legal process that is designed to help businesses and individuals to eliminate all or part of their debts. It can also help in repaying some portion of what is owed. While it helps in bringing relief, one should understand that declaration that they are bankrupt comes with serious and long-term effects on credit. It remains on ones credit for as long as ten years. When considering bankruptcy Oakland residents need to know what the process will involve.
The process is complicated and thus the average person will not be able to go through it individually. The majority of people prefer to hire attorneys for the procedure to go on smoothly. Attorneys are well versed with what the process requires. There are a number of requirements before one gets to file for bankruptcy. One will need to demonstrate they are able to handle their debts. They would also need to register for credit counseling.
After one decides to move forward with the proceedings, they have to decide what to file for. There is the option of going for chapter 7 or chapter 13. Both are able to help in elimination of unsecured debts and halt repossession or foreclosure. With either of these options, one will be expected to take care of court costs and attorney fees. This is inasmuch as they work in different ways.
There are various consequences when one files for bankruptcy. In both cases, one is supposed to give up their possessions for sale for them to be able to pay off creditors. Under certain circumstances, the person ends up losing their vehicles, jewelry, real estate and antique furnishings. It is also possible that your bankruptcy can affect other people. For example, if your parent co-signed a car loan on your behalf, they will still be liable for some of that debt in case you get declared bankrupt.
It will damage the credit of those affected. Bankruptcies are usually considered negative information on credit report of an individual. It thus affects how future lenders view you. Creditors might not offer such people credit at all or if they do, they will do so at higher rates of interest. Depending on type that one filed for, the negative information could be in their report for even a decade.
There are various alternatives before one decides that they will be filing that they are bankrupt. The options also have some effects on credit but not that much. The individual will be allowed to retain all of their possessions. Debt management plans are one of the options to go for. The counselor will work with creditors to help in arrangement of some plan which is workable to repay whatever is owed.
For some people it is easier approaching creditors to see whether they can agree to a manageable plan of repayment. The other option would be to go for a debt consolidation loan. This is whereby one takes a loan to repay debts and they are left with a single loan to service.
The entire process of filing a bankruptcy petition can be costly and lengthy. One needs to know what it involves before beginning. With an attorney hired for the services, it will be easier get through it.
If you are searching for information about bankruptcy Oakland residents can come to our web pages today. More details are available at http://www.centralcoastbankruptcy.com now.