Some individuals cannot handle their own finances due to poor spending habits. Some may even use credit to buy food. In many cases, bankruptcy attorneys in Los Angeles County help people to keep from losing their homes.
The Chapter 7 is the type that erases most of the debt. It helps individuals and families to make a new start. Some debt, however, cannot be excused by a Chapter 7.
Those that cannot be erased include child support, student loans and taxes. The individuals are entitled to keep their home. If they own a second property, they may not keep it.
A car is exempt too. In the case of a couple, two may be kept. Credit card debt, non-secured loans and utilities are excused. The Chapter 7 absolves them of these types of debt.
There are specific parameters that must be met to qualify. In the first meeting with an attorney, he or she makes a determination as to their eligibility. If found eligible, they will have a second appointment to fill out all paperwork.
Using that information, the lawyer files a motion in federal court. A judge reviews the case. He or she will decide whether to accept the petition.
If accepted, a retainer is paid to the lawyer for services to be rendered. There is a filing fee paid for court costs. All debt that is eligible is vacated at that time.
There is another choice. It is the Chapter 13. This type gives the client time to make payments. It totals all debt and a plan is made to repay it, usually within five years. The client must be earning a set amount of money that is sufficient to pay two things. First, he must earn enough to make payments to cover the debt.
Plus, he must have earnings that will cover living expenses. Food, rent and other necessary things are to be affordable after the legal payments are met. There are specific regulations.
At the time that the federal judge grants the petition, all interest will stop. No more will be added to the debts. The Chapter 13 type of bankruptcy give the client a chance to clear his or her debt.
The Chapter 7 is the type that erases most of the debt. It helps individuals and families to make a new start. Some debt, however, cannot be excused by a Chapter 7.
Those that cannot be erased include child support, student loans and taxes. The individuals are entitled to keep their home. If they own a second property, they may not keep it.
A car is exempt too. In the case of a couple, two may be kept. Credit card debt, non-secured loans and utilities are excused. The Chapter 7 absolves them of these types of debt.
There are specific parameters that must be met to qualify. In the first meeting with an attorney, he or she makes a determination as to their eligibility. If found eligible, they will have a second appointment to fill out all paperwork.
Using that information, the lawyer files a motion in federal court. A judge reviews the case. He or she will decide whether to accept the petition.
If accepted, a retainer is paid to the lawyer for services to be rendered. There is a filing fee paid for court costs. All debt that is eligible is vacated at that time.
There is another choice. It is the Chapter 13. This type gives the client time to make payments. It totals all debt and a plan is made to repay it, usually within five years. The client must be earning a set amount of money that is sufficient to pay two things. First, he must earn enough to make payments to cover the debt.
Plus, he must have earnings that will cover living expenses. Food, rent and other necessary things are to be affordable after the legal payments are met. There are specific regulations.
At the time that the federal judge grants the petition, all interest will stop. No more will be added to the debts. The Chapter 13 type of bankruptcy give the client a chance to clear his or her debt.
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Find a complete review of the advantages you get when you consult bankruptcy attorneys in Los Angeles County and information about a well-respected lawyer at http://www.goldbachlaw.com/ right now.
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