Chapter 13 Attorneys Buena Park Will Point Out the Advantages of Filing

Although you may think that all bankruptcy is the same this is not the case. I was speaking to a bankruptcy law attorney Buena Park last month and he pointed out that chapter 13 Buena Park, or wherever, has certain advantages over bankruptcychapter 7 Buena Park 

In a Chapter 13 bankruptcy, you make monthly affordable payments that will go to your creditors. A Chapter 13 bankruptcy has many benefits. For example, Chapter 13 allows you to pay back amounts that you owe on car loans or mortgage loans. You can pay the back amounts owing even if the creditor does not agree. By being in a Chapter 13 payment plan, you can prevent repossession and foreclosure. It is a very valuable tool and it may allow you to keep property that you could have lost to creditors if you had filed a Chapter 7 case

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The Chapter 13 plan payments are designed to be affordable for you and are typically much less than what could be negotiated through creditors directly or through "debt settlement companies" located in other states – many of whom offer payments that that are not much lower that what the credit card companies offer. At the end of the Chapter 13 plan, credit card, medical and many other types of debt will be completely eliminated as a reward for completing the plan.

There are other great reasons to file a Chapter 13. One can use a Chapter 13 to pay many back taxes and child support debts which you could not normally eliminate in a Chapter 7 case. Furthermore, if your household income is too high for a Chapter 7, a Chapter 13 may be the best option. People find that Chapter 13 plan payments are much less than they would have to be normally without filing.

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must compile the following information:

·         A list of all creditors and the amounts and nature of their claims;

·         The source, amount, and frequency of the debtor's income;

·         A list of all of the debtor's property; and

·         A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc

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Married individuals must gather this information for their spouse regardless of whether they are filing a joint petition, separate individual petitions, or even if only one spouse is filing. In a situation where only one spouse files, the income and expenses of the non-filing spouse is required so that the court, the trustee and creditors can evaluate the household's financial position.

Bankruptcy law attorneys Buena Park and specialist chapter 13 attorneys Buena Park have an obligation to tell you the truth and to encourage you to do the same thing too. it is not advisable to be dishonest as you will not be able to get the correct advice and help. You may also find yourself in further trouble by being accused of being fraudulent

It is Boring Reading through Bankruptcy Laws Chapter 7 Placentia

I was upset to hear recently from a friend who was facing bankruptcy chapter 7 Placentia and even more upset when he mentioned a mutual friend who had just gone through a bankruptcy chapter 13 Placentia. This second friend had handled his case by himself and been successful so my friend was thinking about filing for chapter 7 bankruptcy Placentia without professional help. 

I was roped in to help with the research and must admit that I found reading up on bankruptcy laws chapter 7 Placentia to be very boring. In my opinion bankruptcy laws chapter 13 Placentia, or chapter 7 and anywhere, should be left for the attorneys to deal with. I did learn quite a lot and was happy to be able to assist my friend who went on to do well in his case. 

What Happens After I File For Bankruptcy?

The Bankruptcy Court sends out a notice of your bankruptcy filing to all of the creditors listed in your schedules. This notice advises the creditors that you have filed for protection, which chapter you filed and advises them that an "automatic stay" is in effect, preventing creditors from pursuing any further efforts to collect the debt. This would include staying a foreclosure sale, wage garnishment and even a civil court proceeding or trial. Criminal cases are not stayed, nor are child support hearings. Also on the notice is the date and time of your meeting of creditors and/or confirmation hearing with the court, as well as the deadline for taking certain action against creditors. Prior to the 341 meeting, your bankruptcy attorney will discuss any potential issues and help you prepare for any questions that the trustee is likely to ask.

At the meeting of creditors, a Trustee, appointed by the court, will examine you under oath as to the accuracy of the information contained in your schedules. Creditors have a right to be present at this hearing and may ask you questions pertaining only to your assets and liabilities, income and expenses. If they wish to challenge a particular debt from being discharged, most creditors are required to file an adversary proceeding within sixty days of the meeting of creditors in a Chapter 7 case, or the debt is discharged. There may be debts that will survive your bankruptcy, such as student loans, personal tax liability and domestic support obligations. 

Creditors who are owed money on a home or car are secured creditors and possess certain rights that unsecured creditors (such as credit card companies) do not possess. For example, they have the right to foreclose on a home or repossess a car if payments are not made in accordance with the contract. A debtor who is behind on these payments can file under Chapter 11 or 13 and propose a plan to repay the arrears. However, in all cases, the debtor must continue to make the current monthly payments to keep the property. I would have to say that it is advisable to hire chapter13 attorneys Placentia.