Bankruptcy is the legal process whereby a business or person will be able to eliminate all their debts or some of them. It also helps in repayment of some portion of what one owes. While it is something that helps to bring relief, it is important that a person understands the consequences it comes with. There are considerable effects in the long term. The information can stay in your credit report for even a decade. In consideration of bankruptcy Oakland residents should know what is involved.
It is a complex process that the average person is not able to go through individually. This is the reason people hire attorneys to take them through the process smoothly. They are well versed with regulations that govern the process. There are also some requirements that one must meet before they can file for bankruptcy. It is mandatory that one demonstrates they are not able to repay their debts. Credit counseling is also a requirement.
After a person decides that they will file for bankruptcy, it is important to decide on what type of bankruptcy they will go for. The two most common are chapter 7 and chapter 13. They help an individual to get rid of all unsecured debts in addition to halting any proceedings on foreclosure. With these two options, it is the responsibility of the person to cater for fees of their attorney.
There are consequences when one files for bankruptcy. Both chapter 13 and 7 will normally require that the person gives up their possessions to be put up for sale for repayment of their debts. Under certain circumstances, the person loses their possessions like vehicles, antique furnishings and jewelry. There is also possibility that your bankruptcy could affect other individuals financially. If for instance your parents co-sign a loan for a car on your behalf, they are still held responsible for some of that debt if you are declared bankrupt.
It will damage the credit of those affected. Bankruptcies are usually considered negative information on credit report of an individual. It thus affects how future lenders view you. Creditors might not offer such people credit at all or if they do, they will do so at higher rates of interest. Depending on type that one filed for, the negative information could be in their report for even a decade.
There are a number of alternatives before one makes the decision to file for bankruptcy. The majority of options will have an effect on credit also but not as much. With the alternatives, one is allowed to retain their possessions. One option will be to go for debt management plans. In this case, a counselor works with your creditors to help in arrangement of a workable plan to replay what you owe.
For other people it is much easier to approach their creditors to see whether they can agree on some repayment plan. Going for debt consolidation also helps a great deal. This will be whereby one takes one loan to repay all their debts so that they are left servicing a single loan.
The process of filing for bankruptcy can be lengthy and costly. The most important thing is to know what the process involves and the consequences. Attorney services will come in handy.
It is a complex process that the average person is not able to go through individually. This is the reason people hire attorneys to take them through the process smoothly. They are well versed with regulations that govern the process. There are also some requirements that one must meet before they can file for bankruptcy. It is mandatory that one demonstrates they are not able to repay their debts. Credit counseling is also a requirement.
After a person decides that they will file for bankruptcy, it is important to decide on what type of bankruptcy they will go for. The two most common are chapter 7 and chapter 13. They help an individual to get rid of all unsecured debts in addition to halting any proceedings on foreclosure. With these two options, it is the responsibility of the person to cater for fees of their attorney.
There are consequences when one files for bankruptcy. Both chapter 13 and 7 will normally require that the person gives up their possessions to be put up for sale for repayment of their debts. Under certain circumstances, the person loses their possessions like vehicles, antique furnishings and jewelry. There is also possibility that your bankruptcy could affect other individuals financially. If for instance your parents co-sign a loan for a car on your behalf, they are still held responsible for some of that debt if you are declared bankrupt.
It will damage the credit of those affected. Bankruptcies are usually considered negative information on credit report of an individual. It thus affects how future lenders view you. Creditors might not offer such people credit at all or if they do, they will do so at higher rates of interest. Depending on type that one filed for, the negative information could be in their report for even a decade.
There are a number of alternatives before one makes the decision to file for bankruptcy. The majority of options will have an effect on credit also but not as much. With the alternatives, one is allowed to retain their possessions. One option will be to go for debt management plans. In this case, a counselor works with your creditors to help in arrangement of a workable plan to replay what you owe.
For other people it is much easier to approach their creditors to see whether they can agree on some repayment plan. Going for debt consolidation also helps a great deal. This will be whereby one takes one loan to repay all their debts so that they are left servicing a single loan.
The process of filing for bankruptcy can be lengthy and costly. The most important thing is to know what the process involves and the consequences. Attorney services will come in handy.
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