California bankruptcy is right for you is clearly one of the biggest financial decisions of
your life. While bankruptcy can solve many problems, it’s not the
only alternative. There are many other ways to get control of your finances.
You can learn more by hiring a professional California bankruptcy attorney
to go over your case. Even a brief consultation with a lawyer could save
you a lot of headaches.
Before deciding if bankruptcy is right for you, let’s go over the
For individuals, you’re going to be filing Chapter 7 or Chapter 13
bankruptcy. Chapter 7 bankrupt has for years been the more popular one,
but new bankruptcy code has made it difficult for many to file under
Chapter 7 in California and across the nation. Now,
Chapter 13 bankruptcy is often advised.
Chapter 7 bankrupt liquidates your assets, clears you of most debts, and
does so within a matter of months. Chapter 13 bankruptcy pays back assets
over time, and you usually don’t lose much if anything as long as
you stay with the repayment plan. If you feel you cannot pay back outstanding
debts, Chapter 7 bankruptcy is wise. If you don’t want to lose your
home and have income coming in regularly, get with a Chapter 13 bankruptcy
attorney who can go over the advantages of Chapter 13 bankruptcy.
Now let’s go over the decision making process of California bankruptcy.
There are many
alternatives to actually filing bankruptcy, including working with debt counseling agencies. This is another point
where professional counsel is valuable. You often have more options than
Limits on Bankruptcy
Did you know that if you have enough income, you may be forced to file
Chapter 13 bankruptcy? That’s what was alluded to earlier: sometimes
you are forced away from Chapter 7. On the other hand, if you wanted to
save your house or car, you might think Chapter 13 is the way to go. If
your debts are too high and your income too low, you will likely have
trouble filing. These are things you should really study as filing bankruptcy
is not usually a quick fix.
Not all debts will be canceled, even if you file Chapter 7 bankruptcy.
Some debts can be canceled but do not limit what the creditor can do to
take back property. This is a called a secured debt, and some items can be lost.
There are many good things about filing bankruptcy, especially in times
when you feel debts are piling up. You can, for example, wipe your credit
card debts by filing Chapter 7 bankruptcy. This is perhaps the biggest
benefit of filing bankruptcy, as credit card debts and interest rates
sometimes only grow.
Keep All Your Property
One big advantage of Chapter 13 bankruptcy is the options you have the
time you can buy. For instance, you might be falling behind on house payments,
have other outstanding debts, but have a good job about to start. You
might be able to pay back all these debts, including your house payments,
over an extended period of time. Chapter 13 bankruptcy typically gives
you 3-5 years to pay these back. If you love your home, and would do anything
to keep it, Chapter 13 bankruptcy is a good option.
Filing California bankruptcy is a way to clear debts, save property, and
give you a fresh start. However, it will not make all your problems go
away, nor will it be easy to file for. The best thing you can do is hire a
California bankruptcy attorney who can help.
Contact the Price Law Group to speak with a skilled bankruptcy attorney located in California today!