What is bankruptcy?
Whenever a person is not able to pay the money he has taken from other people then he can opt for bankruptcy to start a new life again. A petition can be filled with the help of a bankruptcy attorney San Diego in the court where all the outstanding debts of the company or person are measured and paid out if not in full from the companies or personal assets.
Thus bankruptcy is basically a legal filling which anyone can do, to free themself from any debt obligations. Debts that are not paid to creditors in full are forgiven for the owners. A bankruptcy filing can vary depending upon the country also when you will file for bankruptcy then it will not go good for your future loans as bankruptcy will affect it. However, it would save you from any financial trouble. Who gets told when you file for bankruptcy?
It depends on you how many people could know about your bankruptcy. The rule and requirement only require a few sets of people when you are filing for bankruptcy, and the rest of the people who could know about your bankruptcy depend on you.
Who is required to know about your bankruptcy?
There are a few sets of important people who need to be informed to complete the procedure of bankruptcy. The names are as following:
Creditors: Obviously all your creditors need to know about the bankruptcy, as they need to put an automatic stop on all the debt collecting activity with you. You need to give a full list of all your creditors and how much money you own to them. Thus in order to stop all creditors to stop their debt collecting activity informing them is a must.
Your lawyer who will handle and file all your bankruptcy paperwork and fillings will get to know about your bankruptcy. Thus always find a bankruptcy lawyer in San Diego which you can trust.
No dischargeable debts companies
You have to tell companies that have no dischargeable debts too about your bankruptcy. Like you must tell your student loan companies that you are filing bankruptcy, even though the student loans don’t go away in bankruptcy. Child support recipients and any co-signers or co-debtors must also be told about it. Choose the best bankruptcy attorney San Diego to help you file bankruptcy successfully.
Effects on your credit report
A credit report is another potentially problematic way that others could find out about your bankruptcy. It will stay on your credit report for 7 to 10 years, you are permitted to attach a statement explaining why you filed for bankruptcy, but it will still be considered a black mark. Thus anyone who will run a credit report on you will know about your bankruptcy very clearly. Contact Bankruptcy Law Center to know more about this.
Benefits of chapter 7 bankruptcy?
- Chapter 7 bankruptcy is a very fast process that can be completed in three or four months
- Cheaper than Chapter 13
- Free of most or all debt when it is finished
- Most of all secured debts wiped away after 90 days, after the return of the collateral
- Most unsecured debt will be wiped away after 90 days
- Stops wage garnishments, repossessions, and foreclosures
Benefits of chapter 13 bankruptcy?
- Maximum payment can stretch till 5 years
- Stopping foreclosures
- Stopping wage garnishments and repossession
- Reduction or elimination of interest
- Reduction or elimination of principal
- Restructure of automobile loans
- Restructure of arrears owing on home loans
- Elimination of interest and penalties paid to the IRS or FTB
Get yourself the best bankruptcy attorney San Diego for you to get out of Debt San Diego anytime. A professional San Diego bankruptcy attorney will surely be able to help you in the best way possible and let you start your life in a new way. Contact Bankruptcy Law Center for choosing the perfect affordable bankruptcy lawyer for the job.