If you have been struggling financially for some time now and do not anticipate your financial situation changing for the better any time soon, you may well want to consider hiring a Los Angeles bankruptcy lawyer in the form of a Chapter 7 bankruptcy attorney or Chapter 13 bankruptcy attorney as a way of eliminating a majority of your debt and getting back on your feet. While filing for bankruptcy may have socially negative connotations to many, the truth is that it is often a very positive and advantageous decision for those who are having trouble paying their bills, are heavily in debt, and are worried about losing their home or other possessions.
Before making the decision to file for bankruptcy with your Los Angeles bankruptcy lawyer, however, it is important to consider the two main types: Chapter 7 and Chapter 13, which have different stipulations, requirements, and outcomes. By learning about the two different types, you can consider your own unique situation and determine which will be best for you.
Chapter 7 Bankruptcy Attorney
Chapter 7 is the easier of the two types of bankruptcy to file for and declare. In a Chapter 7 bankruptcy, you can eliminate most if not all of your debt. However, one stipulation of Chapter 7 is that your creditors are usually eligible to receive proceeds from the sale of any property you own that is not protected against bankruptcy. This means that you could lose your home, though you will be able to get rid of your debt. In considering Chapter 7 bankruptcy, however, it is important to be aware that there are some types of debt that cannot be discharged, including some student loan debt. If considering filing for this type, be sure to hire a Chapter 7 Los Angeles bankruptcy lawyer.
Chapter 13 Bankruptcy Attorney
Successfully filing for Chapter 13 bankruptcy is a bit more of an involved and drawn out process than filing for Chapter 7. In a Chapter 13 bankruptcy, you are able essentially to work out a reasonable payment plan with your creditors that is affordable for you. In this way, you can pay back your debts gradually over time without having to worry about incurring excessive fees and interest. In addition, with Chapter 13 bankruptcy, you are protected from having your property taken away from you, making this a very appealing type of bankruptcy to file for those who are worried about foreclosure. Again, if leaning toward this option, it is wise to hire a Chapter 13 Los Angeles bankruptcy lawyer.
Which is Right for You and Why Hire a Los Angeles Bankruptcy Lawyer
Keeping in mind the differences between Chapter 7 and Chapter 13, you can now assess your own situation to consider which you might want to file for, while also taking the time to consult with a Los Angeles bankruptcy lawyer. Bear in mind that, in any case, you should expect to present your tax returns and other financial records for review. Finally, remember that hiring an experienced and ethical Los Angeles bankruptcy lawyer is important to help you determine whether bankruptcy is the best option for you and, if not, what alternatives might be preferable; and in any event it can make the entire process easier for you and improve your chances of dealing with your current debt, and hopefully of ending your overwhelming debt problems once and for all.