Filing for bankruptcy can be a hugely stressful experience, both for the debtor and for his or her loved ones. For participants who are unfamiliar with it, the court system can be daunting. The legalese and technicalities only add to the strain and confusion. Bankruptcy attorneys in Los Angeles County are adept at steering debtors through the maze of the insolvency procedure and achieving satisfactory outcomes for their clients.
While there are no barriers to debtors filing their own cases, hiring an attorney is by far the smartest option. The legal process is challenging and full of technicalities that must be followed to the letter. Failure to follow procedures can lead to a case being thrown out, or the loss of assets. An insolvency attorney can make sure that a case is properly prepared and that mistakes are avoided.
That said, it is important to realize that insolvency isn't necessarily the best option for all debtors. For many, some kind of debt management arrangement can be a better solution. In addition, there are two different kinds of insolvency, each with their pros and cons.
Chapter 7 bankruptcy is the most commonplace form, and requires that the debtors assets are sold and resulting monies paid to creditors. This is a good option for many people, and there is provision for debtors basic needs. Certain assets, such as a main residence and essential transportation, are exempt from liquidation.
Chapter 13 bankruptcy, also known as debt adjustment bankruptcy, is essentially a form of debt consolidation. Under this provision, the debts are consolidated and the debtor undertakes a monthly payment plan. Whichever avenue a debtor is considering, an attorney can help them decide on the best one for their particular circumstances.
As mentioned above, the process of insolvency can be a tremendous source of stress, even at the best of times. Seeking the guidance of an experienced attorney can help immensely in getting through the process as quickly and cleanly as possible. An attorney can also help when the process is finalized and the debtor is ready to rebuild their credit and get on with life.
While there are no barriers to debtors filing their own cases, hiring an attorney is by far the smartest option. The legal process is challenging and full of technicalities that must be followed to the letter. Failure to follow procedures can lead to a case being thrown out, or the loss of assets. An insolvency attorney can make sure that a case is properly prepared and that mistakes are avoided.
That said, it is important to realize that insolvency isn't necessarily the best option for all debtors. For many, some kind of debt management arrangement can be a better solution. In addition, there are two different kinds of insolvency, each with their pros and cons.
Chapter 7 bankruptcy is the most commonplace form, and requires that the debtors assets are sold and resulting monies paid to creditors. This is a good option for many people, and there is provision for debtors basic needs. Certain assets, such as a main residence and essential transportation, are exempt from liquidation.
Chapter 13 bankruptcy, also known as debt adjustment bankruptcy, is essentially a form of debt consolidation. Under this provision, the debts are consolidated and the debtor undertakes a monthly payment plan. Whichever avenue a debtor is considering, an attorney can help them decide on the best one for their particular circumstances.
As mentioned above, the process of insolvency can be a tremendous source of stress, even at the best of times. Seeking the guidance of an experienced attorney can help immensely in getting through the process as quickly and cleanly as possible. An attorney can also help when the process is finalized and the debtor is ready to rebuild their credit and get on with life.
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