Bankruptcy refers to the legal process that is designed to help businesses and individuals to eliminate all or part of their debts. It can also help in repaying some portion of what is owed. While it helps in bringing relief, one should understand that declaration that they are bankrupt comes with serious and long-term effects on credit. It remains on ones credit for as long as ten years. When considering bankruptcy Oakland residents need to know what the process will involve.
The process is complicated and thus the average person will not be able to go through it individually. The majority of people prefer to hire attorneys for the procedure to go on smoothly. Attorneys are well versed with what the process requires. There are a number of requirements before one gets to file for bankruptcy. One will need to demonstrate they are able to handle their debts. They would also need to register for credit counseling.
After a person decides that they will file for bankruptcy, it is important to decide on what type of bankruptcy they will go for. The two most common are chapter 7 and chapter 13. They help an individual to get rid of all unsecured debts in addition to halting any proceedings on foreclosure. With these two options, it is the responsibility of the person to cater for fees of their attorney.
There are a number of consequences of filing for bankruptcy. Both chapter 7 and 13 will require that one gives up possessions for sale so that they are able to pay creditors. Under some circumstances, one could end up losing real estate, jewelry, antique furnishings and vehicles. Your bankruptcy is also able to affect other people financially. For instance, if your parents did co-sign a car loan for you, they might still be held responsible for some of the debt in case you are declared bankrupt.
The credit of those affected gets seriously damaged. Any form of bankruptcy will be considered as negative information on the credit report of a person. It therefore will have an effect on how lenders view such people. They will not offer credit at all in most cases and if by chance they have to, interest rates will be higher. Depending on what one filed for, such information can stay in their credit report for even 10 years.
There are a number of alternatives before one makes the decision to file for bankruptcy. The majority of options will have an effect on credit also but not as much. With the alternatives, one is allowed to retain their possessions. One option will be to go for debt management plans. In this case, a counselor works with your creditors to help in arrangement of a workable plan to replay what you owe.
For some people it is easier approaching creditors to see whether they can agree to a manageable plan of repayment. The other option would be to go for a debt consolidation loan. This is whereby one takes a loan to repay debts and they are left with a single loan to service.
The entire process of filing a bankruptcy petition can be costly and lengthy. One needs to know what it involves before beginning. With an attorney hired for the services, it will be easier get through it.
The process is complicated and thus the average person will not be able to go through it individually. The majority of people prefer to hire attorneys for the procedure to go on smoothly. Attorneys are well versed with what the process requires. There are a number of requirements before one gets to file for bankruptcy. One will need to demonstrate they are able to handle their debts. They would also need to register for credit counseling.
After a person decides that they will file for bankruptcy, it is important to decide on what type of bankruptcy they will go for. The two most common are chapter 7 and chapter 13. They help an individual to get rid of all unsecured debts in addition to halting any proceedings on foreclosure. With these two options, it is the responsibility of the person to cater for fees of their attorney.
There are a number of consequences of filing for bankruptcy. Both chapter 7 and 13 will require that one gives up possessions for sale so that they are able to pay creditors. Under some circumstances, one could end up losing real estate, jewelry, antique furnishings and vehicles. Your bankruptcy is also able to affect other people financially. For instance, if your parents did co-sign a car loan for you, they might still be held responsible for some of the debt in case you are declared bankrupt.
The credit of those affected gets seriously damaged. Any form of bankruptcy will be considered as negative information on the credit report of a person. It therefore will have an effect on how lenders view such people. They will not offer credit at all in most cases and if by chance they have to, interest rates will be higher. Depending on what one filed for, such information can stay in their credit report for even 10 years.
There are a number of alternatives before one makes the decision to file for bankruptcy. The majority of options will have an effect on credit also but not as much. With the alternatives, one is allowed to retain their possessions. One option will be to go for debt management plans. In this case, a counselor works with your creditors to help in arrangement of a workable plan to replay what you owe.
For some people it is easier approaching creditors to see whether they can agree to a manageable plan of repayment. The other option would be to go for a debt consolidation loan. This is whereby one takes a loan to repay debts and they are left with a single loan to service.
The entire process of filing a bankruptcy petition can be costly and lengthy. One needs to know what it involves before beginning. With an attorney hired for the services, it will be easier get through it.
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