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24 June 2017

The Truth About Chapter 13 Oakland CA

By Elizabeth Turner


Getting legal protection from your creditors is easy if you have the right legal adviser and representative by your side. A bankruptcy attorney can advise and guide you every step of the way to ensure that your bad debts are written off in a legal way. There are three main bankruptcy options that you can file, so you should hire an experience bankruptcy attorney to help you pick the right one. When thinking about filing a chapter 13 Oakland CA residents need to work with an attorney who has handled many similar cases in the past. This will ensure they get the best results possible.

This option provides for restructuring of debt to resolve the debt problem reported by individual consumers. Basically, all qualifying debts are listed alongside the monthly income of the debtor. To have their debts written off, applicants only need to make monthly payments for a couple of years.

The main advantage of chapter 13 bankruptcy is that debtors do not lose any of their assets. They simply make a plan to repay their debts based on their monthly income. Once the plan is approved, they only need to make regular payments to the trustee, who will distribute the funds. After the bankruptcy period, the outstanding debts will be written off. It is important to note that the monthly payments are dictated by the income earned by the debtor every month, not how much they owe.

Since assets are not liquidated in the process, this chapter is incredibly popular with high net worth individuals. This is because it saves them from the embarrassment of losing their property. It is also much more discrete.

It is important for debtors to hire the most competent bankruptcy attorneys to help them out whenever they have accumulated too much debt. This is because there are a number of legal options that can help them deal with their debt. Bankruptcy is just the last option. Due to the legal consequences of bankruptcy, consumers should be careful when filing their paperwork.

Some debts can never be written off whether you are bankrupt or not. These include; child support payments, spousal support payments, student loans and taxes. These debts must be settled even if you are declared bankrupt. You should know this before hand because many people have made the mistake of assuming that their student loan debts will also be written off.

After coming up with a reasonable repayment plan, the debtor will be required to present it to creditors, who have the right to ask questions. Once the presentation is over, the plan must be voted on by creditors based on their fraction of the total debt. The judge will take the votes into consideration before approving the plan.

This option, like all other forms of bankruptcy, has a number of adverse effects. For instance, the debtor will get blacklisted by creditors. This will make it difficult for them to get low cost financing in the future. Renting a house or car will also be difficult, and so will getting a higher paying job. This is because their credit report will have the bankruptcy entry for a number of years. Knowing the consequences of bankruptcy is important before you file the necessary paperwork.




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