Bankruptcy Chapter 7 and Chapter 13
Bankruptcy law is judicial proceedings for individual or business that can no longer repay their debts by means of reorganization or liquidation. By getting the right assistance from the best bankruptcy lawyers in Riverside the debtor will be relieved from any financial obligation from the creditor. Nobody wants to be in a bankruptcy situation. Because filing any bankruptcy case may affect anyone emotionally or physically. It will give the creditor the feeling of failure of being in the position and the possibilities of losing their properties. But going through the procedure, they may be free of debt and give them a fresh start. But the proceeding will still affect their credit report for 7 – 10 years.
Different bankruptcy types can be filed. The two most common are the Bankruptcy Chapter 7 and Chapter 13. Chapter 7 case is a proceeding where a liquidation of assets will happen to help repay the creditor. Absolute priority will be done on the debts. The ones that have collateral will be prioritized such as a mortgage. Next in line will be the unsecured creditors and then the investors. Chapter 13 case requires reorganization. In three to five years the debtors must submit and follow a repayment plan to the creditors that may help prevent foreclosure of residence.
There are several bankruptcy offices that you can check and the best one available in your area. You may ask your relatives, friends or even lawyers that may know someone who handles and have the expertise. You may also consider getting the service of an attorney that you can be comfortable entrusting with the details of your finances. Filing bankruptcy may take six months or more to complete, but it will give you the sense of temporary peace of mind away from collection calls, possible eviction or utility disconnection.