Bankruptcy is a difficult choice for the majority. As the economy is steadily rising, millions of Americans are still trying to decide if this is the correct course of action. With debt and foreclosures, you may not see a way out from under the pile. Through calls from creditors day-in and day-out as well as not being able afford the monthly payments, most can barely keep their homes running. Some cannot afford the necessities in life and the stress is causing health problems, which adds on to more debt. It is a never ending cycle that may cause severe mental anguish. Is filing for bankruptcy in Glendale right for you?
Understanding the difference between Chapter 7 and Chapter 13 bankruptcy is important.
Chapter 7 is the act of canceling out most of your debts. State or federal suites such as child support or alimony, restitution and student loans are still in effect. If you have any property or major assets the court will decide what will be sold to pay part or in full the debts you owe. As all states have special guidelines, some allow you to choose either state or federal exemptions, which means some property or assists cannot be taken to pay off your debts. The state of California has two exemption systems in place that you must choose from and does not use the federal system at all.
Chapter 13 is about repaying your debt under the court guidelines. The court will look at the amount of your debts, and then view your financial history and current paychecks. The court may decide to forgive or lower some debts, leaving you with just a few to pay back over time. The amount to be repaid will depend on the amount you make. Additionally, you cannot use the Chapter 13 option if your debts exceed a certain amount.
Each method should be thoroughly explored as many factors are present when applying for Bankruptcy. Additionally, the courts take into consideration if you are married. You can apply separately. However, if the bill is in both names and only one seeks bankruptcy, the creditor can sue the other party for the full amount. If only one party is solely responsible for that bill, then the spouse will not receive repercussions.
Bankruptcy does stay on your credit report for 7 to 10 years. However, shortly after you file, you may be eligible to receive a credit card or purchase a car. Of course the financing rates would be extraordinary. Experts cautioned that just because you can, you should not be impulsive; you should think twice if you plan to apply for a new credit card or any type of loan.
Bankruptcy in Glendale can be an alternative if you are hounded by creditors and cannot get your head above water. Sometimes unfortunate situations occur, through no fault of your own. You should not be ashamed of having to ask for help to relieve your debt.
If you need assistance for a bankruptcy Glendale area case, don’t forget to visit Law Offices of Jan Quaglia where you can get useful and valuable information for your case.
