How Can Filing Bankruptcy Help You?
If you are being pursued by creditors, at risk of losing your home to foreclosure, or facing vehicle repossession, filing bankruptcy can help by stopping all debt collection efforts in their tracks. By law, once a bankruptcy petition is filed with the court, collection calls, foreclosure activity, and automobile repossessions must be halted until the bankruptcy process is completed. During this time, you will not receive harassing collection calls and will be able to stay in your home and keep your car.
How Can Filing Bankruptcy Provide Debt Relief?
Depending on the type of bankruptcy filed, debt relief can be provided in one of two ways. In a Chapter 7 unsecured debts are fully discharged, leaving you with no further obligations to make payments on unsecured debts like credit cards, medical bills, signature loans, etc. The debt relief provided by Chapter 7 bankruptcy is so powerful that laws were changed in 2005 to make it harder for high income earners to file for this type of bankruptcy. In a Chapter 13 bankruptcy, a court approved payment plan is set up based on the amount that a debtor can pay on a monthly basis without suffering undue hardship.
How Can Bankruptcy Help Me to Avoid Foreclosure?
With the mounting number of California foreclosures, threatened homeowners have turned toward filing bankruptcy to avoid foreclosure. Both Chapter 7 and Chapter 13 bankruptcies will stop a foreclosure process with the filing of the bankruptcy petition. In a Chapter 7 bankruptcy, you can avoid foreclosure by catching up with missed payments shortly after the completion of the process. In a Chapter 13 bankruptcy you can avoid foreclosure by keeping up with the payment schedule that is established by the court.
The bankruptcy code provides several ways of avoiding California foreclosures when handled by an experienced bankruptcy attorney. Under the right circumstances, you can see your subordinated home loans either discharged or drastically reduced by employing an aspect of the bankruptcy code known as “lien stripping”. California foreclosures can also be avoided by getting your loan modified through the government program known as the Home Affordable Modification Program (HAMP) during the course of your bankruptcy. Loans modified through this program can result in lowered monthly payments and even reduced principle balances.
Why Should I Hire a Bankruptcy Attorney?
Just about every aspect of filing bankruptcy provides challenges to debtors trying to navigate the process on their own. These challenges include:
· The determination of the best bankruptcy format for your situation
· Defining the assets which you can keep under both bankruptcy processes
· Proper execution of the means test
· Taking advantage of all the opportunities presented in the bankruptcy code
· Ensuring that all of your rights are protected during and after the bankruptcy process
An experienced bankruptcy attorney can see to it that all these challenges are met and result in the best possible outcome for your specific circumstances. Regardless of your situation, successful navigation of the bankruptcy process can get your debts under control and give you a fresh start. For a free consultation with the attorneys at Zhou & Chini to see how filing bankruptcy can solve your debt problems, call them today at (800) 727 1024.
California Bankruptcy Attorney
Chapter 7 is designed to wipe out all of your credit card debt and unpaid medical bills in as little as a few months. Filing Chapter 7 will also stop wage garnishments, repossessions, bank levy’s and foreclosure. The Law Offices of Zhou & Chini file Chapter 7 bankruptcy in all California bankruptcy courts. Chapter 7 is so powerful there are restrictions on who is eligible to file. To find out if you qualify for Chapter 7 bankruptcy in California you need to pass the means test. Once you qualify for Chapter 7 you can stop harassing collection calls and stressing over your financial hardship. Protecting your rights is what we do, we know the bankruptcy laws and California state exemptions. Begin the process of debt relief today. Call our California bankruptcy attorneys today for a FREE consultation.