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Bankruptcy is a legal process that people can take when they can’t pay their creditors. The bankruptcy code is the government’s way to grant relief from all or most of their debts. When you find yourself overwhelmed by debts, unable to sleep at nights, or afraid to even answer the phone, contact EH Law, your trusted San Carlos Bankruptcy attorney.
Bankruptcy is a complicated and often misunderstood legal process. There are two primary types of bankruptcy:
Chapter 7, which clears away unsecured debt such as credit cards or medical bills so you can focus on more important debts like your car loan or rent. The second type is Chapter 13, in which an individual negotiates with creditors to pay back what he owes over time by submitting monthly payments under the supervision of a trustee who distributes those funds as required.
Both types of bankruptcy are effective at clearing debt. But, which one is right for you? Let’s look further at the two most common forms of bankruptcy used by people/entities in the United States:
Chapter 7 bankruptcy deals with the liquidation of assets to help pay back creditors. In a Chapter 7 bankruptcy, unsecured priority debt (like tax debt or child support) are the first to be paid off, followed by general unsecured debt. Secured debts like car loans remain on their schedule.
To be eligible for filing Chapter 7 bankruptcy, you must meet the following conditions:
The steps in Chapter 7 bankruptcy are clear and well documented. Here, we list the typical steps to expect in a Chapter 7 bankruptcy:
The bankruptcy case will be closed by the court unless the trustee hasn’t yet disposed of all non-exempt assets
Chapter 13 bankruptcy is a legal proceeding where debtors go through a process of reorganizing their finances under the supervision of the court. Under the Chapter 13 bankruptcy, debtors are expected to submit a plan to pay back their creditors over a 3-5 year period.
To be eligible for Chapter 13 bankruptcy, you must meet the following conditions:
Chapter 13 bankruptcy is a complicated process with the typical steps being the following:
You might be wondering why to hire a lawyer for bankruptcy when the processes are so properly described in steps. The reason for this is that there is a lot of technical expertise involved in every step of the process. A bankruptcy petition can be over 60 pages to be filled out.
What’s more, a professional will be much better equipped in helping you identify the bankruptcy chapter best for you. Additionally, filing all the required paperwork on time is key to ensuring a smooth and easy process, something a lawyer can help you with. And, finally, not all cases are as straightforward and lawyers become your best bet at navigating a complicated situation.
Here’s what a bankruptcy lawyer can do for you:
As beneficial as hiring a bankruptcy lawyer is, its benefits are limited to how experienced your lawyer is in bankruptcy actions. It is critical to do your research when hiring a lawyer for the job. Here are some things to look for in a bankruptcy lawyer:
When you are in need of a professional bankruptcy attorney, it is important to hire one who will be able to make the process as manageable for you as possible. The EH Law Group can assist with every phase of the bankruptcy process. We have over 10 years of experience in the San Carlos area with positive customer reviews. Give us a call today to discuss your case.
You deserve a fresh start!
We help you get it by being there from the start all the way to the end.