Wednesday, May 23, 2012

Importance Of Understanding Chapter 7 Bankruptcy Timeline | Free ...

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If an individual declares that he can no longer pay his debts, it is called bankruptcy. Like for example, you think you don?t have the ability to pay your mortgage loan for one of homes in Lompoc in the Lompoc real estate market or any property, the best option is to declare bankruptcy. Options in filing bankruptcy include Chapter 7 and Chapter 13 which depend on the incomes being made and the severities of his debts.? As hard as this maybe for some the recent economy has hit millions very hard.? Some areas have been hit harder than others.? Places like Detroit were hit harder financially than lets say Santa Maria, Ca. either way Bankruptcy is one way to start fresh again.

Advantages and disadvantages of both chapters must be considered before making a final decision. If you declare Chapter 7, it will begin with signing of paperwork and filing the right documents with a bankruptcy court. Getting a counseling course regarding bankruptcy is highly recommended in most states, for you to be able to choose the most suitable option for your needs. This counseling must be done not more than six months prior to filing your paperwork.

Upon filing, your wages will not be taken on legal orders or your creditors will no longer call you. What will happen is the court will be calling your creditors.

The next step is your meeting with your creditors which is known as the 341 meeting. You are required to be there but your creditors have the option to attend or not. The person who will be assigned to your case and presides is called the trustee. Typically, this meeting lasts only for 5 minutes and in most cases, creditors don?t show up. Non-exempt possessions will be sold by your trustee. Creditors will then file claims which must be done in 3 months. The person who will help you through this process is the bankruptcy lawyer.

After all of your creditor have files their claims or after the 90 days are over, all of your debts will be cleared and you ill be discharged. But there are certain exceptions such as student loans and child support payments. Taxes and alimony obligations are debts which cannot be written off.

Bear in mind that most of your possessions which may include a home can be sold when you file for bankruptcy. It is recommended that your sell them yourself prior to bankruptcy declaration and use the money to pay your debts. You might not have to declare bankruptcy if you can do this in an effective manner. Make sure to figure out a financial plan that is right for you, with the help of debt counselors.

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