Why Hire A Bankruptcy Attorney?

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Having a qualified and experienced bankruptcy attorneys in sacramento is capable of turning a horrible word such as bankruptcy into a breath of fresh air for your problems financially. Keep in mind that filing is not necessarily a bad thing for those who need it as the entire process was meant to provide relief.

As a matter of fact, filing for bankruptcy has different types and these include the following:

Chapter 7

This is beneficial for the debtors that are qualified and wish to keep covered properties in return of manageable monthly payments. Nearly all debts are wiped out completely and debtors can’t contact you legally to make collections.

Chapter 11 and 12

These are used for businesses and allow them to keep on operating without any harm to their business. This is advantageous on fronts and happens more than what you think. The latter on the other hand is for commercial fishermen or farmers to help them make payments on season when it’s more advantageous.

Chapter 13

This is basically a court mandated plan for all financial woes, giving you 3 to 5 years in paying all debts back using new income. You should pay back a percentage of your debt, calculated by how much cash you’ve got and to how much you owe back to your creditors. With a chapter 13 filing, there’s more responsibility for repayments as well as continuing payment after the plan. This will qualify for both major and minor settlements.

Student Loans and Tax Debt

Both are hard to eliminate. In court as a matter of fact, you have to prove “undue hardship” which means that, you’re completely incapable of maintaining lowest living standard if needed to pay back student loans or tax debt. A good example for undue hardship is if you got into an accident causing you to become disabled.

You can’t claim bankruptcy. You should go to court and file a petition before a judge. Bankruptcy attorneys sacramento can assist you to get through this complex process which ensures the best outcome possible. There are many people who are actually under the impression that bankruptcy is going to ruin their credit score. On the other hand, a lawyer is going to tell you that bankruptcy remains on your credit report for the next 10 years but can help you to start on rebuilding your credit almost instantly.

With the help of a bankruptcy lawyer, you’ll still have the chance to keep your house and some other prized possessions.


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