Having to file for bankruptcy is never an easy decision. There are different reasons that can make one to file for bankruptcy, including bade investment and spending decisions, illness, lack of employment, and bad luck among many others. When one files with the court system as being bankrupt, they receive protection from harassment by creditors. The filing also helps to prevent foreclosure, repossession of property by creditors among others. When in need of Bankruptcy attorney Santa Cruz should be visited.
There are two main types of insolvency and a person can file for one that suits their situation. The two include chapter 7 and chapter 13 bankruptcy. Chapter 13 bankruptcy is also known as wage earner plan. This is usually meant to give people with a steady income enough time to plan how they will repay part or all of their debts.
The debtor proposes a repayment plan that they will follow to repay creditors in installments. The repayment period usually spans between three and five years. On the other hand, chapter 7 bankruptcy is a bit harsher. In this case, the bankruptcy trustees gather all possessions owned by the debtor and sell them off so as to repay creditors. There is a code that must be followed during all of these transactions. In both cases, it is important to have legal counsel.
Lawyers who specialize in bankruptcy law use their experience to negotiate cases in the place of clients. In chapter 7 insolvency, they help to ensure that all debts are settled while in chapter 13, they help with reorganization of debts. Responsibilities and duties of lawyers vary a lot here.
The lawyer will usually asses the financial situation when the client comes for initial consultation. During this time, the lawyer is able to understand the financial goals the client has as well as discuss the various debt reprieve options available. These attorneys help find out if the best option is to file for insolvency. It bankruptcy is the best option then they will decide on the best chapter to file.
The fees charged by the lawyer and other payments are usually discussed during the initial consultation. Once the attorney has been hired, they start doing various tasks on behalf of the client. For instance, they start accepting collection calls on the behalf of their client. Creditors usually stop calling the debtor directly and start dealing with the attorney. However, creditors are allowed to continue calling and contacting the debtor until they file the case.
The biggest task that the attorney usually does is to prepare, type, and file the petition. The petition is composed of several forms that have to be filed with the bankruptcy court. The number of pages composed in the petition usually depends on the number of creditors one has. If the number is high, the petition can be as long as 60 pages.
A client is usually given an opportunity to go through a petition before it is filed. This is necessary to ensure all assets the debtor owns are listed in the petition. It is also important to ensure there are no mistakes within the documents. The signature of the client must also be placed on the petition before being filed.
There are two main types of insolvency and a person can file for one that suits their situation. The two include chapter 7 and chapter 13 bankruptcy. Chapter 13 bankruptcy is also known as wage earner plan. This is usually meant to give people with a steady income enough time to plan how they will repay part or all of their debts.
The debtor proposes a repayment plan that they will follow to repay creditors in installments. The repayment period usually spans between three and five years. On the other hand, chapter 7 bankruptcy is a bit harsher. In this case, the bankruptcy trustees gather all possessions owned by the debtor and sell them off so as to repay creditors. There is a code that must be followed during all of these transactions. In both cases, it is important to have legal counsel.
Lawyers who specialize in bankruptcy law use their experience to negotiate cases in the place of clients. In chapter 7 insolvency, they help to ensure that all debts are settled while in chapter 13, they help with reorganization of debts. Responsibilities and duties of lawyers vary a lot here.
The lawyer will usually asses the financial situation when the client comes for initial consultation. During this time, the lawyer is able to understand the financial goals the client has as well as discuss the various debt reprieve options available. These attorneys help find out if the best option is to file for insolvency. It bankruptcy is the best option then they will decide on the best chapter to file.
The fees charged by the lawyer and other payments are usually discussed during the initial consultation. Once the attorney has been hired, they start doing various tasks on behalf of the client. For instance, they start accepting collection calls on the behalf of their client. Creditors usually stop calling the debtor directly and start dealing with the attorney. However, creditors are allowed to continue calling and contacting the debtor until they file the case.
The biggest task that the attorney usually does is to prepare, type, and file the petition. The petition is composed of several forms that have to be filed with the bankruptcy court. The number of pages composed in the petition usually depends on the number of creditors one has. If the number is high, the petition can be as long as 60 pages.
A client is usually given an opportunity to go through a petition before it is filed. This is necessary to ensure all assets the debtor owns are listed in the petition. It is also important to ensure there are no mistakes within the documents. The signature of the client must also be placed on the petition before being filed.
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