Bankruptcy is a legal status of a person incapable of paying debts to creditors. It is a legal proceeding in which the assets and liabilities of individuals and businesses who can’t pay their bills are examined. The court will duly decide whether to discharge those debts.
Dealing with debt is an incredible burden that will impact every part of your life. Financial turmoil, in addition to creating stress and anxiety, can hurt your relations with your loved ones. You do not have to keep living under the strain of debt, however.
Bankruptcy laws were created to give people a chance to start anew; however, while the chance to fresh start is given, it is important to know and to understand that it will definitely affect your capacity to use money as it may prevent foreclosure on your properties.
But people must know that bankruptcy is not a way to punish someone but to give a second chance, although it gives penalties and such. But there is no need to fret because after all, it is a fact of life that we commit such mistakes. Working with a skilled and competent bankruptcy lawyer can go a long way to obtain financial relief.
A Woodland Hills California bankruptcy lawyers will tell you the difference between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy is a chance to release you from your responsibility of repaying debts get that “fresh start”. You are authorized to retain key assets or the “exempt property” such as home, car, and pension but the “non-exempt property” such as bank accounts, stock investments, and coin and stamp collections will be sold. Non-exempt properties will be liquidated and it will be used to repay the creditors. However, there are certain debts that cannot be discharged in this type of bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and non-dischargeable debts.
Since you are entitled to secure your exempt properties, you must sign a “Reaffirmation Agreement” that guarantees you to retain your house, car, or furniture. By signing this agreement, you are still obliged to pay the debt and you must continue to pay it just. You are still entitled to selectively reaffirm your debts by stating that you wish to keep any of your properties but want to give the car back to the creditor because you can no longer keep the responsibility of paying for it.
Chapter 7 gives you the immediate protection against creditors’ wage garnishment on the date when the bankruptcy was filed. In addition, creditors nor the court do not have the further right to the wages you earn after bankruptcy. This type of bankruptcy can immediately be discharged in 3 to 6 months.
A Woodland Hills California bankruptcy lawyers will also tell you this type of bankruptcy. Under this type of bankruptcy, the debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtor’s future income. This is an option to avoid house foreclosure, pay taxes, keep the non-exempt property or simply because they do not qualify for Chapter 7 because their income is too high.
Chapter 13 bankruptcy is generally used by debtors who want to retain non-exempt assets. In exchange, debtors have to pay back all the debt through the repayment plan. Chapter 13 bankruptcy is a reorganization whereas Chapter 7 bankruptcy is a liquidation. Typically, Chapter 13 bankruptcy is for debtors who can afford to make payments on non-dischargeable debts such as alimony, child support, and such.
However, most people do not successfully finish their plans due to the time frame that was given. When this happens, debtors may then choose a Chapter 7 bankruptcy instead.
While there are numerous reasons why Woodland Hills California bankruptcy lawyers are the best option for you, it is important to know how can they help you with the process. The Gomez and Simone law firm in Woodland Hills has a proven high record of success in terms of bankruptcy. All their bankruptcy lawyers have experienced legal practice in all courts for the state of California.
A Woodland Hills bankruptcy lawyer can help you avoid foreclosure and penalties. Any other skilled attorney can look deeper into the context, analyze and carry out a plan but Gomez and Simone bankruptcy lawyers will help you, yourself, analyze the situation you’re into, look into the future, and how can you start anew. The attorneys at Gomez and Simone decide under which bankruptcy chapter their client will fit into. No matter which chapter fits for your bankruptcy claims, Gomez and Simone will definitely carry out the best results for you.
Getting a fresh start through Chapter 7 bankruptcy may be right for you. On the other hand, repaying some or all of your debt through Chapter 13 bankruptcy may be the best solution. A bankruptcy lawyer must review your claims and situation and must also recognize that immediate court proceedings are not always the wise choice for a “fresh start”. In some cases, negotiations with your creditors can be the best solution for your financial stability.
Propitiously, Woodland Hills holds a list of leading bankruptcy lawyer. However, it is not enough that you ask help from a bankruptcy lawyer – it is important to work with a skilled and knowledgeable bankruptcy lawyer. Here in Gomez and Simone law firm, lawyers will assure you to get that second chance you deserve and the success rate is guaranteed.
For years, people across Woodland Hills, California have placed their trust in Gomez and Simone law firm. The law firm has helped many lives through their skills, experience, and clemency. Gomez and Simone’s Woodland Hills California bankruptcy lawyers are dedicated to serving high-quality legal representation. Gomez and Simone have helped thousands of individuals and families live a tranquil and harmonious life once again.