When you are in an extreme financial difficulty, collection agencies are already harassing you from the mortgage, credit card companies and others; you might be thinking on walking away from debt or might want to know more about how to file bankruptcy.
Nobody wants to be in a bankruptcy stage. Aside from the fact that it may not only affect one’s emotionally but also significantly change your whole life including relationships. Being in a difficult situation like bankruptcy is mostly due to an unplanned condition such as medical expenses or due to poor budgeting.
Bankruptcy is also known as a federal court proceeding that helps an individual or business to get rid of their debts or repay their creditors. A reorganization or a liquidation can be processed. With getting the assistance of a bankruptcy lawyer, you will get guidance on the correct procedure.
Two of the most common bankruptcy cases are the bankruptcy chapter 7 and chapter 13. Both may take months to process and may cost you hundreds of dollars. To be able to file for chapter 7 bankruptcy you must prove your eligibility that you can no longer make enough money to pay the current debts and that you are allowing your nonexempt assets to go a liquidation process to pay creditors. While child support, due taxes, and alimony cannot be wiped out by this law. Chapter 13 is known as the “wage earner” bankruptcy proceeding. The debtor must be able to come up with a plan and stick to it on how to repay their creditors.
These proceedings can be a success by consulting the right people like a financial advisor and getting the best bankruptcy lawyer in Riverside that you can trust. Besides, the proceeding will give you a temporary peace of mind and a lesson in life that you must spend wisely and plan appropriately for a better future for you and your family.