When your phone rings non stop from collection agencies and your mailbox is full of past due notices, it’s hard to get ahead. You know that you’ve got to do something to get out of the vicious cycle you are caught in, but money only stretches so far and when there are more bills than money at the end of the month, you’ve got a problem. Bankruptcy may be the solution that you’re looking for. It’s a way to get rid of your debts and start fresh. Of course, there are some stipulations to filing, but a Bankruptcy Attorney Murrieta, can discuss these stipulations with you, and determine if you qualify for some type of bankruptcy protection.
There are two types of bankruptcy that most individuals may file, Chapter 7 and Chapter 13. In a Chapter 7 Bankruptcy, you have no assets to speak of, you have no home equity, little vehicle equity, no large amounts of cash in the bank and no additional items of value. You will have to go to court before a Judge and if it’s determined that you have no way to repay your unsecured debts, they will be discharged. At this point, you will owe nothing and be debt free.
A Chapter 13 Bankruptcy is a bit more complicated. This type Bankruptcy is for the individual who has some assets, and means to repay some of their debt, with steady income from employment. With this Bankruptcy, your income and monthly expenses are listed and it’s determined what amount you can repay on your unsecured debts. Your attorney will calculate an amount and it will be approved by the Judge at your court date. It may only be pennies on the dollar, but the amount you pay to your court appointed trustee is divided among the creditors each month. Your payments continue for 3 – 5 years and when you complete the agreement, your remaining debts are discharged and you are debt free.
If you are considering bankruptcy, discussing your options with a Bankruptcy Attorney Murrieta, will be very helpful. Of course, your credit will be damaged by bankruptcy, but it’s a small price to pay to get out from the cycle of financial ruin you were in. If you’re in a place financially that you can’t get out of, without assistance, don’t hesitate to speak to an attorney for advice. You’ll be glad you did.
