Experiencing financial hardships is never easy. Those in debt often find it difficult to get out of. The longer a person stays in debt, more and more money is added on to their financial responsibilities. While it’s always recommended to try and pay of debts, sometimes bankruptcy is the only feasible option. If so, people should consult the help of a Bankruptcy Attorney in Murrieta. They’ll be able to provide valuable help and information to clients when considering bankruptcy.
There are certain requirements and guidelines to follow when filing for bankruptcy. While most people don’t realize it, there are multiple types of bankruptcy, each with their own benefits and requirements. A Bankruptcy Attorney in Murrieta will be able to sit down with clients and their financial documents to determine the best course of action. They can give life changing information to guide them in the right path.
One common form of bankruptcy is chapter 7. Chapter 7 bankruptcy is the one that people are most common with. It allows filers to start a new financial life by ridding them of their debts and protecting them from creditors. To qualify for chapter 7 bankruptcy, filers must make less than the median income of the people in their area. Even then, it’s not uncommon for filers to need to undergo a means test to determine eligibility. If approved, most debts will be erased and filers can begin to take control of their financial lives. Many debts, such as student loans and tax debts are not covered by the bankruptcy and still need to be paid off by filers.
Chapter 13 bankruptcy is another option for those who wish to start anew. Unlike chapter 7, chapter 13 bankruptcy involves the repayment of debts. While this may seem no different than paying off bills, the debt is consolidated and combined into one debt. This amount is paid to a trustee through monthly payments. This monthly payment amount is determined based on income and other factors. This form of bankruptcy is great for those who can still afford to pay off debts. Filers are able to keep most of their access and be debt free within 3-5 years.
All in all, bankruptcy can be a tricky process. A Bankruptcy Attorney in Murrieta will be able to help filers take control of their life through bankruptcy. Their knowledge can make all the difference, giving clients a much brighter future.