There are many advantages for filing bankruptcy in California. This used to be considered a last resort only option, but was created to relieve the pressure. Many individuals and families have lived years with heavy financial stress that seemed to only get worse. With rising medical costs, lower wages, and job loss this relief is sorely needed by many in order to be able to start fresh.
Long ago debtor's prisons were eliminated. The problem is that living with a heavy debt burden can be just as limiting. When it comes time to pay the bills, people often have to check their cupboards to see if they can get by another week without groceries. Making the choice between food and a credit card bill is not easy, but food will win out. It is times like this that these laws and courts were created.
Using bankruptcy as a way out is very common. There are many unexpected ways to end up in dire straits, but through the courts, this can be rectified. If you get a sick feeling in your stomach when the phone rings, due to fear of another creditor calling, it is time to think about taking steps to relieve the stress through the system.
When the papers are filed, the calls stop immediately. The constant, unwanted attention that debt collectors give you at home, work, and now on the cell can be stopped within hours of the paperwork being filed. In fact, from this point on, any collector who calls is violating the law and can be fined by the court for continuing to attempt collection activities.
There are several words that are tossed around before and during proceedings. The paperwork is called a petition. This is filed with the court and notices are sent to the creditors. The exemptions are different types of property that the court or laws exempt from creditor seizure and bankruptcy. Often there is a dollar amount associated with exemptions. An automatic stay is what is issued to all creditors when the petition is filed. This tells creditors they must cease all collection activities immediately. A discharge is the court ruling to eliminate the debts.
The three types are categorized in chapters. Chapter 7, 11, and 13 all have different purposes. When filing, you will need to consult with your attorney on the question of getting rid of all of your debt, or restructuring so you can pay it. The most common type is elimination. The restructuring is often used if you have significant assets that would be lost to total elimination. In these cases, your debt is often reduced and payments are structured to make it easier to pay the remaining debt. In either case it would be necessary to discuss all bills and property values with your attorney to determine the best action.
When the procedures are completed the debts are cleared. Many people relish having the financial slate wiped clean. It gives them an opportunity to begin rebuilding the credit. The calls have stopped, the debts are gone, and so is the stress.
Filing bankruptcy in California may seem like a difficult decision at first, but the benefits are so much greater because the stress is lifted. People who have taken this step often comment on how quickly their lives returned to the stress free life they had before.
Long ago debtor's prisons were eliminated. The problem is that living with a heavy debt burden can be just as limiting. When it comes time to pay the bills, people often have to check their cupboards to see if they can get by another week without groceries. Making the choice between food and a credit card bill is not easy, but food will win out. It is times like this that these laws and courts were created.
Using bankruptcy as a way out is very common. There are many unexpected ways to end up in dire straits, but through the courts, this can be rectified. If you get a sick feeling in your stomach when the phone rings, due to fear of another creditor calling, it is time to think about taking steps to relieve the stress through the system.
When the papers are filed, the calls stop immediately. The constant, unwanted attention that debt collectors give you at home, work, and now on the cell can be stopped within hours of the paperwork being filed. In fact, from this point on, any collector who calls is violating the law and can be fined by the court for continuing to attempt collection activities.
There are several words that are tossed around before and during proceedings. The paperwork is called a petition. This is filed with the court and notices are sent to the creditors. The exemptions are different types of property that the court or laws exempt from creditor seizure and bankruptcy. Often there is a dollar amount associated with exemptions. An automatic stay is what is issued to all creditors when the petition is filed. This tells creditors they must cease all collection activities immediately. A discharge is the court ruling to eliminate the debts.
The three types are categorized in chapters. Chapter 7, 11, and 13 all have different purposes. When filing, you will need to consult with your attorney on the question of getting rid of all of your debt, or restructuring so you can pay it. The most common type is elimination. The restructuring is often used if you have significant assets that would be lost to total elimination. In these cases, your debt is often reduced and payments are structured to make it easier to pay the remaining debt. In either case it would be necessary to discuss all bills and property values with your attorney to determine the best action.
When the procedures are completed the debts are cleared. Many people relish having the financial slate wiped clean. It gives them an opportunity to begin rebuilding the credit. The calls have stopped, the debts are gone, and so is the stress.
Filing bankruptcy in California may seem like a difficult decision at first, but the benefits are so much greater because the stress is lifted. People who have taken this step often comment on how quickly their lives returned to the stress free life they had before.
About the Author:
Get the inside info on the pros of Filing Bankruptcy in California on our website where you get the opportunity to opt in to receive a free consultation and special report by a reputable orange county attorney on http://thelawyeryouwant.net