Bankruptcy Filing: A Guide For Costa Mesa Debtors
Although one of the more stable cities in California, Costa Mesa has suffered from the general slowdown that has hit the state in recent years. One of the most notable results is excessive consumer debt, which eventually led to a spike in bankruptcy filing. But how does bankruptcy really work, and is it really the best way out of debt? Few of us actually know the answers and end up making the wrong moves. If you're struggling with your debt, here's a guide to Costa Mesa bankruptcy filing and some tips on making it work.
Chapter 7 vs. Chapter 13
This is usually the first and biggest question you'll face when filing bankruptcy in Costa Mesa. The chapters refer to the two types of consumer bankruptcy. Chapter 7 bankruptcy, the more common of the two, involves the liquidation or selling of some of your assets in order to pay creditors. In Chapter 13 bankruptcy, you work out a repayment plan and pay off your debt over three to five years. Each one is designed for a different debtor type, and the laws are made so that you can file under the appropriate chapter.
The Means Test
The means test was introduced in 2005 to prevent abusive Chapter 7 filings. What it does is compare your income to the median income in your state, so you can't file Chapter 7 if you're making enough to use Chapter 13. basically, if you're making more than the median, you can only file Chapter 13 bankruptcy. Your Costa Mesa bankruptcy attorney can help you perform the means test and explain minor details, such as which income types are considered, which can affect the results of the test.
Automatic Stay
As soon as you file your petition, the court imposes an automatic stay on your creditors. This prevents them from contacting you or harassing you to collect payments. The stay also covers foreclosure, wage garnishments, and other solicitation actions. Your Costa Mesa bankruptcy attorney will take care of all communications on your behalf, so you don't have to deal with creditors and can focus on completing your bankruptcy.
Conditions of Discharge
Once the trustee has decided which debts to discharge and your creditors have agreed to the terms, you will be eligible to exit Costa Mesa bankruptcy. Under Chapter 7, this takes about three to five months after your filing. If you're filing under Chapter 13, you can only get discharged after you've completed the repayment plan which, as described above, lasts three to five years.
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In this article we shall touch on the basics of what is a chapter 13 bankruptcy. What are the critical steps in a chapter 13 bankruptcy. The importance of obtaining a bankruptcy attorney prior to filing a chapter 13 bankruptcy petition. What are the benefits of chapter 13 bankruptcy and how they can help you save your house in foreclosure.
Due to the economic slump the country has faced over the last several years, many people have found themselves behind on major payments or unable to pay for things in general, even with a steady income. If you find yourself in a tough financial situation due to economic setbacks like job loss, illness or unexpected expenses, filing chapter 13 bankruptcy can often provide relief.
Filing a Chapter 7 Bankruptcy is the most common type of bankruptcy proceeding. It is sometimes called "straight" or "liquidation" bankruptcy.
Chapter 13 bankruptcy allows you to repay creditors over a period of 36 to 60 months. In most cases you only pay back a percentage of your debt.
Call us if you want to feel something you probably haven't felt in a while- Hope. The decision to file bankruptcy lawyer new york has important benefits. And it may be your best option. Bankruptcy Is Not A Dirty Word. As filing a bankruptcy is a tough decision, you should approach the right bankruptcy lawyer. We are a specialist bankruptcy attorney in New York, who can guide you through the process effectively.
A Chapter 13 bankruptcy is also known as a wage earner's plan. The debtor pay off the debts in installments under a payment plan.
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Chapter 7 bankruptcy also called a straight or total bankruptcy, it is the only form of bankruptcy that allows the discharge of debt almost immediately after filing. But it's not just quick relief that draws debtors in distress to file Chapter 7 bankruptcy. While it does have its risks, it offers unique benefits in terms of cost, effort, and recovery.
When you are going for chapter 7 bankruptcy than you will face many problems during that time. As chaper 7 bankruptcy can take three to five months to complete, sometimes even longer. A lot can happen during that time—you can lose your job or get a new one, lose or acquire property, or find that you have other debt relief options.
Bankruptcy is seldom as simple and straightforward as it seems. Cases that seem smooth enough at the outset can later reveal details that complicate the filing, and even get them dismissed. This is especially true in Chapter 13 bankruptcy, where a repayment plan has to be worked out with creditors and approved by a bankruptcy trustee.
When you are going to filing bankruptcy its important to understand the terms you may encounter during your filing and what they mean for you. Bankruptcy is of two types chapter 7 and chapter 13. More than half consumer bankruptcies are filed under Chapter 7, which involves selling off assets to pay off as much debt as can be covered, and discharging the rest. Summary : As a debtor, you'll be faced with more than a few of these terms—and while your bankruptcy lawyer can explain a few things.
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