All You Need To Know About Bankruptcy CA
by Sandra Baker
There are many reasons why a person may want to become bankrupt. For starters, they may want to get the protection of the court from creditors. Secondly, they may need a legal solution to their debt problem. In care of foreclosure, someone can file for bankruptcy to stop the foreclosure process. Whatever the reason, it is always recommended you hire a competent lawyer to help you out with <a href="www.centralcoastbankruptcy.com/">bankruptcy CA</a>.
A person or business can become bankrupt involuntarily or voluntarily. If your debts have become too much of a burden and creditors have been bothering you, the best option is to approach the court voluntarily to get legal protections. If creditors want to compel you to pay your debts, they can approach the court and seek to have you declared bankrupt involuntarily.
Individual debtors can get rid of their bad debts conveniently through debt reorganization under chapter 13. This chapter makes it possible for debtors to retain their assets as they make monthly payments. After a few years of making regular monthly payments, all unpaid debts are forgiven. However, the debtor must have a reliable income to qualify for this chapter.
Chapter 7 is considered the default option. This chapter is meant for both corporate and individual debtors without a source of income. It entails liquidation of assets owned by the debtor. After the liquidation process, the debtor is forgiven of any unpaid debts they may have. In case a debtor who has been declared bankrupt under chapter 13 or chapter 11 defaults on their repayment plan, they can also be declared bankrupt under chapter 7.
The most competent lawyers are usually those that have a lot of industry experience. For this reason, you need to start by creating a shortlist of lawyers that have been in the industry for many years and have handled dozens of similar cases. This will help to ensure you get quality services.
If you own a company that is deep in debt, you can either decide to wind it up through chapter 7, or try to save it under chapter 11. To qualify for chapter 11, the business must have a steady income source that can be used to service the debt in question. After being declared bankrupt, the business will be managed under the supervision of the court through the trustee.
It is important to note that once you have become bankrupt, you will not be able to borrow any loans for some time. This is because most lenders will refuse to approve your loan application on the account that you have a tainted history. Firms that may be willing to lend you money, on the other hand, will quote higher rates of interest and unfavorable terms. Getting a better job or renting a business premise or home will also become extremely challenging.
Many people often make the mistake of looking at bankruptcy as the best option of getting rid of their personal debts. However, this is not the case. After all, there is a price to pay for becoming bankrupt. This includes a tainted credit history and a damaged reputation. Therefore, this should only be looked at as an option of last resort.
Find an overview of the advantages you get when you consult a <a href="http://www.centralcoastbankruptcy.com">bankruptcy CA</a> lawyer and more information about an experienced attorney at http://www.centralcoastbankruptcy.com now.
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New Unique Article!
Title: All You Need To Know About Bankruptcy CA
Author: Sandra Baker
Email: nathanwebster335@live.com
Keywords: bankruptcy ca
Word Count: 529
Category: Finance
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