Bankruptcy is a legal process through which one can get out of there debt or get relief from paying it. Bankruptcy protects you from possible harassment and also will help you in paying your debtor. Bankruptcy is implemented by a court order which is initiated by a debtor. Bankruptcy is of many types and you might need a chapter 7 lawyer San Diego for filing chapter 7 and vice versa for the other one.
Bankrupt is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency.
Types of bankruptcy
There are many types of bankruptcies but mostly 2 types of bankruptcies are used, one is chapter 7, and the other in chapter 13. The most commonly used in chapter 7, in this the assets of the debtor is valued and sold to pay the people he owes money. Most people choose these types of bankruptcy for them. Contact us and get yourself a good Chapter 7 lawyer San Diego to help you file a chapter 7 bankruptcy.
The other chapter 13 makes you pay the creditors. A specific time span is fixed and you will pay in that fixed year to your creditors, the time decided is mostly less than 5 years. After those particulars, you are free of your debts. Always consult a good bankruptcy lawyer San Diego before choosing what bankruptcy you want. This will help you in choosing the best bankruptcy for you which will benefit you in many ways.
Advantages of Chapter 7
Fresh Start: The whole objective of filing bankruptcy is to help the person come out of debt and start a new life. And to do that filing for Chapter 7 bankruptcy is the best way to do that. It will help you settle your debt and start a new start for you.
Future income: Property from a divorce decree or settlement agreement, death benefits, or the proceeds from a life insurance policy.
New loans for you: You may also be able to obtain new lines of credit within one to three years of filing bankruptcy, although at a much higher interest rate.
Advantages of chapter 13
The advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.
Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
Bankruptcy is not an easy decision but in order to get relief from your daily struggles you need a solution and that solution is only legally. Thus filing bankruptcy is the best option for you to get out of debt and start your life again.
A bankruptcy lawyer is the best option for you to do that, and get legal help for your debts. A professional bankruptcy lawyer San Diego will be able to guide you and let you file for bankruptcy perfectly without any much trouble. Get yourself an eligible bankruptcy lawyer today with BLC Law Center. Contact us today and set up a meeting with our professional lawyers.