Filing for bankruptcy is not a simple decision that happens overnight. It requires a proper evaluation of your current financial position including a consultation with an experienced bankruptcy lawyer to determine whether to file for Chapter 7 or Chapter 13. Typically people are forced to make a decision because they can no longer withstand the pressure from their creditors. It certainly isn’t easy having to face overwhelming debts and harassment from creditors when there isn’t any source of cash for making payments. Basically this is the scenario facing many Americans today; thus, the considerable number of people filing for bankruptcy in Yorba Linda.
Advantages of filing Chapter 13
The choice whether to file for bankruptcy in Yorba Linda area depends upon the individual’s financial situation including his long term and short term goals. Chapter 13 can be particularly beneficial for some individuals as it allows them to retain possession of their home and car. While it eliminates most of the unsecured debts, there is a debt repayment plan with a range of 36 to 60 months to make payments for other indebtedness that are outstanding and delinquent at the time of filing for Chapter 13. After a few years, the individual emerges debt free and is able to start with a new life. He retains possession of his home and car including other properties and assets as they are protected by the Bankruptcy laws from being seized by irate creditors.
Debt-free in 3 months through Chapter 7
Filing for Chapter 7 does not really mean that you will be 100 % debt-free. What will be discharged are the unsecured debts like credit cards, medical bills, dental bills and other indebtedness without attached security. While there will be debts that cannot be eliminated like child support and home mortgage payments, the unsecured debts will be discharged within a shorter period of time which is usually within 3 to 4 months from the date of filing Chapter 7. In contrast to Chapter 13, you needn’t have a repayment plan for your debts and you will be debt-free within a shorter period of time.
Obviously, Chapter 7 seems a better alternative than Chapter 13 but there are requirements before anyone can file which is better explained by a bankruptcy lawyer. Filing for Chapter 7 means that you hardly have anything left every month after paying for all the basic living expenses. You cannot just file for Chapter 7 if you have regular income and are able to pay for your basic life necessities. While Chapter 7 provides the quick debt relief, your bankruptcy lawyer will help you determine whether you have the chance of gaining approval from the bankruptcy courts.
Since the filing of bankruptcy is a legal process, it requires that you have to be accurate in everything you put on paper. If you try to commit fraud, there is a likely chance for your application to be disapproved by the courts. Don’t take chances with your future and that of your family by consulting with an experienced and knowledgeable bankruptcy lawyer.
Filing for bankruptcy in Yorba Linda sounds appealing. You will be debt-free and able to start a new life.