Be it because of divorce, loss of income, overwhelming medical bills or crushing credit card debt more and more people are turning to bankruptcy as their refuge from harassing phone calls, letters from creditors and the stress of crawling from beneath a mountain of debt.
You probably don't know this but bankruptcy dates back to Biblical times as a moral solution for debtors and a requirement for creditors in early Judaic history and it is a Constitutional right of all U.S. citizens. Even Presidents Thomas Jefferson and Abraham Lincoln dealt with bankruptcy.
Consumer Bankruptcy, Bankruptcy Indiana, Montana Bankruptcy Lawyer,
Bankruptcy provides critical relief from creditors harassing you or taking action to seize your assets or property. Once you hire a lawyer and file bankruptcy proceedings there is an "automatic stay" or freeze imposed against all such actions. The steps that follow will allow you to discharge - legal terminology for cancel or wipe out - your obligation to pay certain debts and put you back on your feet again with a second chance at financial stability.
Erasing debt, saving your home and getting a fresh start on life are just a few of the advantages that bankruptcy offers you. The disadvantage, of course, is that it will affect your credit rating and your ability to obtain low-rate loans and credit cards for a few years in the future. However, the reality for most people facing bankruptcy is that their credit already has been severely affected by circumstances beyond their control.
However, time may be of the essence. If you're more than several months behind in your bills or on the verge of a foreclosure you may be limiting many of your legal options to protect yourself, your family and your possessions.
Before you consider liquidating your 401K plan, maximizing your home equity line of credit or depleting your savings to continue to "get by" the next few months, stop! Don't do it before you contact a bankruptcy attorney. Don't deplete an asset that might very well be protected in the bankruptcy process.
It is within the legal rights of creditors to obtain court judgments against you if you fail to pay your debts, allowing them to then seize your assets. Absent the filing of a bankruptcy petition the first creditor to race to the courthouse and obtain such an order can collect on their debt even if they take all your assets to the detriment of your other creditors.
Bankruptcy proceedings are conducted in the U.S. Bankruptcy Court, where you or your lawyer file petitions that include complete and accurate details of all your financial information including income, expenditures, assets and liabilities. Once this petition is filed your assets are protected and creditors are barred from seizing your possessions or harassing you.
Thereafter, your assets are put into what is called an estate. Your estate consists of all the legal or equitable interest you have in property wherever located and by whomever held. That includes real estate, furniture, vehicles, clothing, jewelry, stocks, bonds and money in the bank. In theory, during a Chapter 7 bankruptcy - which is the most common form - a bankruptcy trustee would gather all of your property and sell it for the benefit of your creditors. THAT USUALLY DOES NOT HAPPEN BECAUSE YOU GET TO CLAIM CERTAIN PROPERTY AS EXEMPT.
As the proceedings unfold the trustee will be appointed, a hearing held and, depending upon which type of bankruptcy is involved, most cases will be over in four months (if you are in a Chapter 7) or three to five years (if you are in another type of bankruptcy, Chapter 13).
To summarize the key points of filing for bankruptcy:
• Collection efforts by creditors are blocked
• Possibility of eliminating most of your debt
• Fresh start with your finances
• Possibility of saving your home
• Possibility of saving your car and other possessions
• It allows you to hire a lawyer as an expert advocate in the complicated federal court system
• It may protect your 401K retirement plan or other assets
Bankruptcy Lawyers In San Diego
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Lawyers In San Diego
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment