Declaring bankruptcy is a big decision, one that requires research and good advice. When making this decision it’s wise to ask an attorney to outline your options. A bankruptcy attorney in Hemet can help you to decide if bankruptcy is a good solution for your particular situation.
Bankruptcy law distinguishes between personal debt and business debt, and this is the first consideration. Chapter 7 bankruptcy law is usually quicker than Chapter 13 bankruptcy and most debtors who successfully file a Chapter 7 do not have to pay back a portion of their debts as is required by Chapter 13.
The typical Chapter 7 bankruptcy case is opened and closed within three to six months and the individual achieves debt free status for most unsecured debt. The debt that is not forgiven is non-dischargeable debt, such as student loans, recent taxes, and unpaid child support. Chapter 7 usually allows people to keep their home and automobile.
However, you must be eligible for Chapter 7 bankruptcy and if your income is enough to fund a repayment plan than you may have to file a Chapter 13 bankruptcy (also known as a reorganization bankruptcy). Here, instead of selling off all relevant assets to pay creditors, a repayment plan is agree upon which uses the filer’s income to gradually pay off all their debts. Under the guidelines of this type of bankruptcy, debtors propose and agree to a repayment plan that pays off creditors over a three to five year period. Like Chapter 7 bankruptcy, Chapter 13 bankruptcy has its own set of rules and eligibility requirements. Given these complexities, deciding which one best suits your situation is best done with the help of a Hemet bankruptcy attorney.
Declaring bankruptcy is appropriate when your debt situation has become untenable and you require a fresh start in order to keep going. If most of your debts are unsecured and you do not see your situation improving in the near future, then filing for bankruptcy may be the only solution available to you.
To determine whether or not bankruptcy is an appropriate choice for you situation and if so, what type of bankruptcy is best suited to you, it is best to consult a Hemet bankruptcy attorney well versed in bankruptcy law, options, and eligibility requirements. Getting the right help when you file for bankruptcy is crucial to a successful outcome.