Distressed consumers with too much bad debt can get legal protection through different types of bankruptcies. By petitioning the court to declare them bankrupt, debtors can get legal protections that will not only give them peace of mind, but also provide a pathway for debt forgiveness. When thinking about bankruptcy Santa Cruz residents should take their time to look for a suitable lawyer to advise them appropriately.
If you want to become bankrupt, you should not make any move without consulting a competent lawyer. The ideal attorney must have handled many similar types of cases in the past. The lawyer will tell you everything you need to know about the process and help you with the paperwork. When you have a competent legal adviser by your side, you can be assured of getting positive results time and again.
The three main types of bankruptcies available to debtors are; chapter 11, chapter 7 and chapter 13. Whatever the case, it is important you learn about these options before making a decision. After all, some chapters may be more suitable for your case than others. If you pick the right chapter and file the necessary paperwork in court, you will be able to get legal protection from your creditors as well as debt forgiveness.
If you are an individual debtor, there are two options that you can consider. For starters, you can seek to be declared bankrupt under chapter 7, in which case your assets will be sold to pay off your debts. Alternatively, you can seek to become bankrupt through chapter 13, in which case you will be asked to draft a plan on how you are going to pay part of your debt with regular monthly installments.
Business owners and corporate entities can use chapter 11 or chapter 7 to get rid of their business/corporate debts. However, proof of sufficient income must be provided before chapter 11 bankruptcy can be granted. With chapter 7, the business owner only needs to show that they do not have a reliable source of income, in which case, their inventory, vehicles and other assets will be liquidated.
There are many pros of becoming bankrupt. For starters, you will be able to get debt forgiveness. Secondly, you will be able to get protection from creditors. After all, they will be barred from communicating with you in any way as all their debts will now be handled by the court. This will give you peace of mind.
Getting protection from your creditors is one of the main goals of becoming bankrupt. Another goal is having your debts written off. However, you should know that there are several disadvantages of becoming bankrupt. For instance, you will be blacklisted by creditors, and this will make it almost impossible for you to get access to affordable credit from mainstream lenders.
There are certain jobs that you cannot get if you are bankrupt. Similarly, there are some rental properties that you cannot rent if you are bankrupt. Since most car rental companies nowadays run credit checks on potential clients, you may also not be able to rent a car. As you can see, bankruptcy can turn your life upside down. After weighing all the pros and cons of bankruptcy with the help of a lawyer, you will be able to make an informed decision.
You can get valuable tips for picking a bankruptcy Santa Cruz attorney and more information about an experienced lawyer at http://www.centralcoastbankruptcy.com now.