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.

The Pros and Cons of Reaffirming a Debt in Bankruptcy

Under normal circumstances, when you reaffirm a debt, you are required to sign a contract with the lender that you are going to continue making the payments until you clear all the balances. Such contracts include taking mortgages or a vehicle loan. However, you need to be very careful when signing such contracts as it may lead to be totally out of bankruptcy. In other words, if you fail to make continuous payments, as the deal requires, the lender has the authority to reposes the property you acquired from the loan you were given, for instance, the vehicle you bought and other personal properties to settle down the balances owed from you.

Signing reaffirmation agreement has several advantages. These include the following:

First, since the debt by the lender doesn’t show the amount discharged on your credit, then, you will continue to receive all the affirmative impacts on your credit from regularly monthly payments.

Secondly, the agreement is a deal between the lender and the receiver so that both negotiate for the better terms and conditions for the existing loan. Therefore, the lender will be certain that the loan receiver will not walk away without clearing the outstanding balances.

Thirdly, the reaffirmation agreement will be used to calculate the interest rate deductions that will helpful to the person being advanced with the loan, such that his/her monthly payments would be more affordable. In addition, principal balance reduction will be indicated too.

Finally, upon signing reaffirmation agreement, you will be certain that all the laws have been complied with and you will be sure that security of your property. Therefore, the lender will not be able to repose your property such as your vehicle unless you have defaulted in making your regular monthly payments.

However, reaffirmation agreement has its drawbacks, and the following is the most common:

If you fail to clear all the outstanding loan balances, the property acquired will be reposed to clear it. The worst-case condition is that you are less likely to ask for another loan in the future. Some lenders can blacklist your name and other lenders would shy away from you.

All reaffirmation agreement must done in the lending office upon which the loan will be processed. The agreement must be witnessed and thereafter signed by you (whom loan will be given), a bankruptcy judge, and the lender. In addition, the agreement must approved by the court; therefore, the loan requester and the attorney must appear before the court to affirm your agreement before the judge that you will be able repay the loan each month. However, most lenders charge additional fees to facilitate the above extra steps.

Many Employers are Wary about Hiring Someone who has Filed Chapter 13 Anaheim

There is an old saying about giving a dog a bad name and hanging him. This is the case of someone who is looking for a new job after filing Chapter 13 Anaheim, or anywhere else in the country. Unless you are a Chapter 13 attorney Anaheim, or wherever, or are practicing Chapter 7 bankruptcy law Anaheim, you will find that many prospective employers are wary of hiring someone has the stigma of bankruptcy attached.  

Debtors need employment after bankruptcy, but many may be denied job opportunities simply because of past financial failure. A bankrupt individual is like a teenager who is repeatedly turned down for jobs because he lacks experience. But if he keeps on getting turned down, he will never get the experience he needs. Somebody has to take a chance on the youngster and give him his first job. Likewise, employers must be willing to take a chance on hiring someone who has been bankrupt. 

Companies often check credit when a job involves finance, accounting, cash or valuable merchandise and when a position requires a security clearance. If your credit is poor or you’ve filed bankruptcy, be ready to provide interviewers with a short, contrite explanation and to redirect the conversation to one of your strengths as well as to a reference that can back up your story. A positive attitude and a determined demeanour, along with a job-winning resume, go a long way in convincing an interviewer that, in spite of any blemished credit report, they have the right person for the job. Applicants should spend time extolling virtues and not vices. Paint a picture of past workplace successes and superior abilities, and exude competence. 

The same criteria will apply to all applicants when applying for a job but for someone who has been dealing with a bankruptcy Chapter 7 lawyer Anaheim or with a Chapter 13 bankruptcy Anaheim, there is the additional pressure of dealing with this prejudice. Finding employment after bankruptcy can be quite a challenge. Applicants applying for work in banking, retail merchandising, government, security, and outside sales have always been routinely screened by prospective employers to verify clean credit records, clear criminal background checks, and negative drug tests. However in recent years, extensive screening, including credit checks, has become the norm for increasingly more occupations. An individual may possess all of the qualifications, but if a Chapter 7 or 13 proceeding appears on the credit report, they may be denied the job. 

This does not mean that you should just give up and accept defeat. Although it may seem like an uphill battle you will find that not all future employers will judge you in the same manner. There will be those amongst the rest who are sensible to realise that having to file for Chapter 13 Anaheim or having to file for any form of bankruptcy may not necessarily be a character flaw. These things sometimes do happen to good people and they cannot control the final outcome of it.

Searching for a Good Bankruptcy Attorney Orange is Easy these days

The internet has made life so much easier for just about everyone and now so much time is saved when you are searching for something. In the olden days it could take a whole day of traipsing around offices to find a good bankruptcyattorney Orange. Then you would ask around and check out the references given and the recommendations of other people suggesting an attorney bankruptcy lawyer Orange. 

These days all you need to do is to log on to the internet and search for an attorneybankruptcy Orange and you will be presented with a vast range of options. The words attorney bankruptcy law Orange will be sufficient for you to be able to make a selection from so many results and you can even check out the reviews of other people regarding their experiences with the bankruptcy lawlawyer Orange that you are considering. 

Types of Bankruptcies

When a business faces insurmountable financial problems, it can petition the courts for one of several types of bankruptcies. The most common are Chapter 7, which liquidates a business, discharging debts you cannot pay and obligations you cannot meet, and Chapter 11, which helps a business temporarily suspend certain obligations while it prepares a reorganization plan. A Chapter 7 bankruptcy allows you to start a new business with no burdens or obligations from the one you closed. Chapter 11 helps you take steps to stop your downward slide so you can save the business profitably and re-emerge from bankruptcy.

Chapter 11 is commonly referred to as business reorganization. Although individuals can file a Chapter 11, most filings are for businesses. Under a Chapter 11 case, the business or individual debtor remains in possession of the assets and formulates a plan to pay creditors over a period of time. The debtor in possession may divide creditors into different classes, rearrange or sell certain assets, and have certain protection while formulating a plan while remaining in business. There is no limit on the amount of debt an individual or business may have under this chapter.

Under Chapter 13, a lawyer can provide assistance in maximizing your fresh start through motions with the court to revalue assets, strip liens and provide you the relief you are seeking. The eligibility limits on filing a Chapter 13 change on a yearly basis and you should consult the Bankruptcy Code or an attorney for the limitations.

The thing that you need to be aware of is the fact that although bankruptcy is a common part of life these days and there is no longer any shame involved, it can still be upsetting and things are made worse when the filing is done wrong and problems arise. This is why it is important to not cut corners by trying to do everything yourself, but instead to hire the services of a bankruptcy lawyer Orange, or wherever. In this way you can at least rest assured that you are in good hands and the chances of success are increased.