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.
Chapter 7 is the most common option for people and businesses that are not able to settle their debts. This is because almost any debtor can qualify for this option. All you need to prove is that you have qualifying debts that you cannot service due to lack of income or due to an unreliable income.
Businesses can get debt reorganization and forgiveness through chapter 11. This is similar to chapter 13 except for the fact that it is meant for corporates and businesses. The management is only required to prove that they have a decent income as well as a plan to service their debts. Usually, business owners can get debt forgiveness after a few years of making regular monthly payments.
Chapter 13 was designed specifically for individual consumers. It basically entails debt reorganization. You will be asked to come up with a payment plan to service your debts. If the plan is approved, you will get a chance to retain all your assets as you continue to make small monthly payments to offset a portion of your debts. It is important to note that if you default on this plan, your assets will be liquidated under chapter 7.
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, there are several things that you should expect. The first is that your credit will be tainted. This means that you will not be able to get affordable loans from mainstream lenders. You will also be unable to secure a better-paying job. Renting a house or car will also become a huge challenge for you.
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.
It is important to note that a chapter 7 will lead to liquidation of assets. Your property will be sold through a public auction, so the process is also public. This means that your reputation may be tainted and your family will be embarrassed.
Get a summary of the factors to consider before selecting a bankruptcy Oakland lawyer and more information about an experienced attorney at http://www.centralcoastbankruptcy.com now.