samedi 26 mai 2018

Importance Of Bankruptcy Santa Cruz CA

By Paul Cooper


If you are a distressed consumer, it is important you explore all your options for debt settlement. While bankruptcy may be the last option that you should consider, it is one of the best options for resolving debt problems. This is because you will get debt forgiveness as well as protection from your creditors. This will give you peace of mind. To ensure you get everything right, be sure to hire a lawyer who specializes in bankruptcy Santa Cruz CA.

There are many bankruptcy lawyers that you can consider hiring. Since they are not all the same, you will need to carry out some research to identify the best lawyer for your needs. The ideal lawyer should be able to help you with the paperwork and offer guidance throughout the process. When needed, the lawyer will represent you during the proceedings.

There are three types of bankruptcies. These are chapter 7, chapter 11 and chapter 13. Each of these chapters has been designed with a different type of debtor in mind. To get debt forgiveness and protection from creditors, therefore, you have to take your time to look at the pros and cons of different chapters and choose the right one for your needs.

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.

To get debt forgiveness and protection from your creditors, it is recommended you become bankrupt. However, you should know that there are several cons that come with these benefits. For starters, you will not be able to access affordable credit as lenders will either reject your loan applications outright or charge exorbitant interest rates on their loans. This means that your life may take a turn for the worse.

If you have been declared bankrupt, there are many types of jobs that you can never get. This is because employers are always looking for competent workers, not individuals who have proven to be financially irresponsible over the years. For this reason, you need to spend some time to think about the pros and cons of bankruptcy before making a decision. After all, you may not even be able to rent a car after being declared bankrupt.




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