Most people live their lives with debt, which is not bad. When the amount of debt accumulated by a single person becomes unsustainable, however, they may start experiencing financial problems. If the income earned by the debtor is not enough to service those debts, the only option might be to renegotiate the debt or declare bankruptcy. Chapter 7 Oakland residents should know, is the default type of bankruptcy. Read on to learn more.
The first thing the court will do after receiving the bankruptcy petition is to appoint a trustee to handle the case. The trustee will be responsible for liquidating the assets belonging to the debtor. They will also be tasked with forwarding the proceeds of the sale to creditors. Taxes and court fees will also be covered by the proceeds.
This is a great option for consumers who have an unreliable source of income and few valuable assets to speak of. After all, they will not lose much when their assets are liquidated while their income may not qualify them for other bankruptcy options. The beauty of the entire process is that the debtor can become debt-free immediately.
Consumers should know that bankruptcy has pros and cons. The main con is that it will become public knowledge, so anyone who has interest can find out about your status. For instance, your loan applications will be rejected when lenders run a credit check on you.
Bankruptcy is normally put on the credit report of the debtor, and stays there for several years. This will taint the credit score of the debtor. As a result, they will not be able to get a better job or rent a decent house. These are some of the things that debtors should know about before declaring bankruptcy.
It is not automatic that once you declare bankruptcy under this chapter the court will approve it. The court normally hires a trustee to look into the financial position of the debtor. If they discover that the debtor has few valuable assets and a considerable income, a Chapter 13 bankruptcy will be recommended instead. This is because creditors can recover more money from regular payments than from liquidation of assets.
Consumers should keep a number of things in mind when filing for bankruptcy. First and foremost, they should know that this option is for both individuals and businesses. It is also the default form of bankruptcy as debtors who default on chapters eleven and thirteen usually have their assets liquidated under this option.
The beauty of declaring bankruptcy is that you get peace of mind in that creditors will not be able to contact you in the future or take any further action to recover their funds. Furthermore, any penalties that creditors might have been adding to your outstanding balance will be stopped, thereby stopping your debt from increasing any further. In addition to that, creditors have to accept whatever payment they are given by the trustee, no matter how little it may be. Since the law provides for exemptions, you might get a chance to retain your car.
The first thing the court will do after receiving the bankruptcy petition is to appoint a trustee to handle the case. The trustee will be responsible for liquidating the assets belonging to the debtor. They will also be tasked with forwarding the proceeds of the sale to creditors. Taxes and court fees will also be covered by the proceeds.
This is a great option for consumers who have an unreliable source of income and few valuable assets to speak of. After all, they will not lose much when their assets are liquidated while their income may not qualify them for other bankruptcy options. The beauty of the entire process is that the debtor can become debt-free immediately.
Consumers should know that bankruptcy has pros and cons. The main con is that it will become public knowledge, so anyone who has interest can find out about your status. For instance, your loan applications will be rejected when lenders run a credit check on you.
Bankruptcy is normally put on the credit report of the debtor, and stays there for several years. This will taint the credit score of the debtor. As a result, they will not be able to get a better job or rent a decent house. These are some of the things that debtors should know about before declaring bankruptcy.
It is not automatic that once you declare bankruptcy under this chapter the court will approve it. The court normally hires a trustee to look into the financial position of the debtor. If they discover that the debtor has few valuable assets and a considerable income, a Chapter 13 bankruptcy will be recommended instead. This is because creditors can recover more money from regular payments than from liquidation of assets.
Consumers should keep a number of things in mind when filing for bankruptcy. First and foremost, they should know that this option is for both individuals and businesses. It is also the default form of bankruptcy as debtors who default on chapters eleven and thirteen usually have their assets liquidated under this option.
The beauty of declaring bankruptcy is that you get peace of mind in that creditors will not be able to contact you in the future or take any further action to recover their funds. Furthermore, any penalties that creditors might have been adding to your outstanding balance will be stopped, thereby stopping your debt from increasing any further. In addition to that, creditors have to accept whatever payment they are given by the trustee, no matter how little it may be. Since the law provides for exemptions, you might get a chance to retain your car.
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