When you find yourself deep in debt, there are several options that you can consider. For starters, you can decide to refinance your debts. This will make it easier for you to service your debts. Secondly, you can decide to consolidate your debts to make it easier for you to service them. This will also save you money and make it possible for you to successfully pay off your debts. The last option is to file for bankruptcy CA.
You can decide to become bankrupt voluntarily to get protection from the court. However, you can also be declared bankrupt involuntarily when creditors approach the court to have you declared bankrupt in an effort to recover their debts. Whatever the case, becoming bankrupt has many legal consequences that you should know about before making your decision.
Chapter 13 is a legal solution for dealing with personal debts. If you decide to become bankrupt under this chapter, you will be required to make monthly payments to the trustee for several years. After a few years of making regular payments, your unpaid debts will be forgiven. No asset will be liquidated. To qualify, however, you must have a source of income.
Chapter 7 is considered the default option. This chapter is meant for both corporate and individual debtors without a source of income. It entails liquidation of assets owned by the debtor. After the liquidation process, the debtor is forgiven of any unpaid debts they may have. In case a debtor who has been declared bankrupt under chapter 13 or chapter 11 defaults on their repayment plan, they can also be declared bankrupt under chapter 7.
The most competent lawyers are usually those that have a lot of industry experience. For this reason, you need to start by creating a shortlist of lawyers that have been in the industry for many years and have handled dozens of similar cases. This will help to ensure you get quality services.
If you own a company that is deep in debt, you can either decide to wind it up through chapter 7, or try to save it under chapter 11. To qualify for chapter 11, the business must have a steady income source that can be used to service the debt in question. After being declared bankrupt, the business will be managed under the supervision of the court through the trustee.
It is always recommended you look for the most competent lawyers to help you out with the case. After all, you will need legal counsel and guidance. You will also need help with the paperwork. The ideal lawyer should have a lot of experience helping debtors with similar debt problems in the past. They should also be willing to take up your case immediately.
Bankruptcy is always an option of last resort. When you find yourself in financial problems, be sure to consider debt consolidation and debt refinancing before you think about becoming bankrupt. These are better options for getting rid of your debts. However, they can only work if the debts you have are sustainable.
Find an overview of the advantages you get when you consult a bankruptcy CA lawyer and more information about an experienced attorney at http://www.centralcoastbankruptcy.com now.