Declaring bankruptcy is never an easy decision. However, bankruptcy laws in California are in place to give individuals another chance to rebuild their financial standing. For individuals in Temecula with a large amount of debt, bankruptcy can bring the end to harassing letters and telephone calls and allow the debtor to move on with their life, often being able to keep their home, car and other items.
Filing for bankruptcy can have a negative affect on your future credit and is not the right choice for everyone. However, it can sometimes be the only solution for people who have debts that they will never be able to repay. Californian laws help people regain financial independence when debts become unmanageable. You could even be awarded with the chance to repay your debts over a period of time as part of a manageable and convenient repayment plan based on your household income and expenditure.
When you have made the decision to file for bankruptcy, it is imperative that you employ the services of an experienced Temecula bankruptcy attorney. They will advise you on the best route to take in regards to your personal finances. They will recommend whether it’s best to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, or even explore alternative options depending on your circumstances. A Chapter 7 bankruptcy is one where your property is sold and the proceeds from the sale are used to pay off your creditors. Once your assets are sold, any debt remaining is discharged leaving you free of debt. You may even be able to keep your house, car and other property as liquidations only applies to non-exempt property. Individuals who wish to apply for Chapter 7 bankruptcy will need to be “means-tested” to see if they qualify. This test will determine if you can afford to pay 25% of non-priority unsecured debt like medical bills or credit cards and is worked out by looking at your household expenditure on items such as rent, bills and food. Chapter 13 bankruptcy is an option if you are adamant that you want to keep your property. This type of bankruptcy allows an individual to stop the foreclosure process for up to five years if you agree to make payments to creditors.
You have rights under state and federal bankruptcy laws that could prove you with the financial relief you need. A highly-qualified Temecula bankruptcy attorney can help you during every step of the bankruptcy process, including helping you to fill in the correct forms to file for bankruptcy.