Be sure to hire an attorney before you embark upon filing for personal bankruptcy. Debt consolidation allows you to consolidate your debts and get rid of them easily. Chapter 13 bankruptcy is where you can keep all of your property but you must make monthly payments over a period of three to five years in order to pay some or all of your debt.
Chapter 13 is the equivalent of the reorganization idea, but for individuals instead of businesses. You’ll need to take a look at any past bankruptcy filings you have been involved with. You might lose your home, but filing bankruptcy doesn’t seem right. Chapter 9 bankruptcy code is applicable to municipalities of towns and cities.
If you suspect your credit is in peril, you might consider talking to someone from such a company. You can get the federal form from the courthouse or download it online to see if you qualify for Chapter 7, or if a restructuring of your debt (Chapter 13) is a better option. Filing for Chapter 7 bankruptcy can be done by an individual or a business. Bankruptcies can be complicated legal matters and while it might be tempting to do it yourself, there are a number of benefits to having a qualified bankruptcy lawyer help you. Get more info at BBC.
On the other hand, bankruptcy as outlined in chapter 13, title 11 of the code allows you to reorganize your debts, with the goal of completing payments during a three to five year period, while holding on to your assets. A bankrupt trustee must reorganize themselves through coming up with a repayment plan for a certain period of time. You only qualify for Chapter 7 if your average salary for the last six months was less than the recommended median salary for California Bankruptcy. It can be a process that will give you freedom over your will, reestablish you reputation and put you on the right track of regaining your good credit. Proof that you are able to pay some or all of your debt using your existing sources of income.
Bankruptcy lawyers are experienced in evaluating financial situations and determining how to proceed. Therefore, this test is a great measure and it facilitates fair treatment for both the parties, i.e. creditors and debtors. While it costs some money to chapter 7 vs chapter 13 7 bankruptcy, a $299 filing fee with the courts and some lawyer fees, you stand to save tens of thousands of dollars. Most of them will give you a free 20-minute consultation.
There are two common types of bankruptcy – Chapter 7 and Chapter 13. The process of bankruptcy-solutions file bankruptcy is not easy at all so expect the attorney’s fee to be expensive. At this stage, I strongly suggest that you check with a tax adviser and attorney. There are a number of bankruptcy lawyers who specialize in medical bills and bankruptcies.