Wednesday, April 24, 2019

Chapter 7 and Chapter 13 Personal Bankruptcy

Peoples are borrowing money to fulfill their personal needs, but problem is that.
What happened when someone can’t pay back their debt? What are you going to do?
Before jump into, let’s discuss a couple of words that used a lot. Debtor > this is the person who borrowed the money: On the other side a Creditor > this is the person that is owed the money or they lent the money to the borrower.
The question is, what happened when the debtor can’t pay back the money to the creditor?
In human history, if you go back to ancient Greece, if the debtor can’t pay back their debt, then become a debt slave to the creditor. They do the job for creditor like house cleaning, gardening, cooking, etc.
That’s who Greece handle it if you know it’s kind of shocking to us now, but that was their solution.
In these days it’s a 21 century and there is a lot of solutions to get rid of debt and also brand new start.
Now we only discuss bankruptcy the first version of bankruptcy was similar to debtor’s prisons, but know we have bankruptcy laws and these laws prevent this type of craziness.
Bankruptcy, we only have to focus on bankruptcy in California. In general talk about personal bankruptcy in personal bankruptcy two chapters are included in chapter 7 and chapter 13.
 Chapter 7  Bankruptcy: this is also called a straight bankruptcy It seems complicated in simple words it’s not a simple procedure. You file for bankruptcy that you can’t pay back your debt due to some reasons like jobless or other some circumstances. If you have assets then you have to sell it to pay back to the creditor, this whole procedure is done by trustee. But at the end of the day debtor can say that free of all my debt. Its stay on your credit report for ten years.
Debts that are non-dischargeable with chapter 7 bankruptcy are certain types of taxes, student loans, child support, those won’t be forgiven.
Chapter 13 Bankruptcy: this is often referred to as a reorganization. If you have a job or monthly income and take a debt more than your income due to medical emergencies or other, than you are qualified for chapter 13 bankruptcy. In this debt is not get rid of completely but you can set a plan to pay off your debt in 3 to 5 years. This will a little bit of a negotiation if you have $50,000 debt and after negotiation, you owe only $40,000 and interest rate decrease from 20% to 10% a year. It will stay on your credit report for 7 years.
From personal bankruptcy point of view Chapter 7 and Chapter 13 are important. If you find out yourself in these circumstances, just for the knowledge you are not alone and the number of bankruptcy filings is increasing gradually. In the United States, chapter 7 bankruptcy filings are in 2008, 2009, 2010 sequentially 419k, 585k, 826k, and chapter 13 bankruptcy filings are 289k, 345k, 381k, both are increasing really fast, but chapter 7 is even more dramatic because in this situation peoples don’t have jobs.  

Wednesday, April 17, 2019

CHAPTER 7 BANKRUPTCY: CAN HELP ME OUT OF DEBT?



In a continuation of series on filing for bankruptcy, in my previous blogs, I already discussed a lot of topics on bankruptcy here I am taking a look at chapter 7 bankruptcy. While there are numbers of chapters to file for bankruptcy, the most common are chapter 7 and 13. Chapter 7 is the most common form of bankruptcy it is useful for personal bankruptcy and helpful to save your home or a car.
It does not much harder to get rid of debt instead of drowning in debt and at the end, you completely stuck in debt. If you are facing this problem then don’t worry you are not alone. In fact, millions of people are facing this problem because they take debt due to different circumstances like job loss, massive student loan, and unexpected medical bills.
The debt is not gone alone, and there are other situations where violent action takes place to deal with debt. One option we discuss her is, file for chapter 7 bankruptcy. Below, we examine a few reasons why you would like to consider this option.

https://www.pitnit.com/business/details/AW-LAW-Group/120860793/-r2ACXL8hFlF-cLBUbn3rw2/I-3aSA8_Jx-eXkRGRjpFTQ2
https://www.bizcommunity.com/Profile.aspx?c=762

http://www.wherezit.com/listing_show.php?lid=1601588
http://www.connectbuzz.com/marketlistings.php?id=3549

Are you harassed by credit providers?

When you stop paying your debt than creditors make calls to you, in the start, their behavior will be good but after a tow to three months they will harass you and it can cause extreme stress and anxiety. You can also feel embarrassed when they come to your office or home to take the collection and sometimes you don’t answer your phone due to stress. In some cases, you feel fear of your safety and freedom. Filing for chapter 7 bankruptcy will help you to stop creditor harassment.

Qualifying for chapter 7 bankruptcy

Before filing for chapter 7 bankruptcy you have to qualify for this program it depends on your financial condition. If your average income of 6 months is less than your state’s median income you automatically eligible to file for bankruptcy. One more point is considered to measure the eligibility criteria is that your debt should be dischargeable a term dischargeable is indicating that if your debt is not in the form of such debts that are not considered under chapter 7 bankruptcy then you will never get rid of debt. Certain type of debts: personal loans, credit cards, medical bills, and personal injury claims are dischargeable and chapter 7 can free you from these debts. Understand though, that you will still be responsible for paying non-dischargeable debts.

Save your home and valuable assets

Once you have been approved for filing, After providing proof of all assets and other documents the court also provide stay on all debt collections activity and foreclosure proceedings after that you can continue living and working safely, including a vehicle, your home, bedding, and home appliances will be at least temporarily save from pursuing foreclosure proceedings. To discuss this in detail, you have to consult with your bankruptcy lawyer.
The fact is that Chapter 7 bankruptcy or even other forms of bankruptcy may not be suitable for everyone. However, it can be helpful for people all over the state to reduce pressure on the debt and make a new start of financial.
To discuss debt relief solutions including bankruptcy, you should consult a bankruptcy lawyer who can help you understand your options and make an informed decision on how to proceed.
https://www.catchafire.org/organizations/aw-law-group_19693
https://www.b2bco.com/awlawgroup
https://www.4networking.biz/members/184495/
https://www.cgmimm.com/california/newark/legal/aw-law-group