Filing for bankruptcy is the process provided by federal and state law to discharge or renegotiate debts that it has become impossible for you to repay. Bankruptcy provides a way out of an impossible situation, whether you have gotten in over your head because of credit card debt, medical debt, personal loans or other financial obligations. While it is a last resort in most cases, it can be the single best way- and sometimes the only way – to get back to a better financial place. If you think bankruptcy may be the best option for you, contact an Inglewood bankruptcy attorney today to learn more about what bankruptcy entails and to get help with the filing process.
What is Involved in Filing for Inglewood Bankruptcy
When you file for Inglewood bankruptcy, the process starts by determining what chapter is the best one to file under. There are three chapters that are often used for personal bankruptcies: chapter 7, chapter 11 and chapter 13.
Chapter 7 is called liquidation bankruptcy because assets are liquidated to pay back debts, and it allows for all eligible debts to be forgiven or discharged after the sale of non-exempt assets. Chapter 13 is called wage earners bankruptcy because it allows for those with a higher income to file bankruptcy and repay some of their debts without losing their assets. Chapter 11 is a form of bankruptcy that also allows you to restructure debt and keep assets, but is most appropriate for those with larger amounts of debt. An experienced Inglewood bankruptcy lawyer will help you to determine what chapter is the best for you given your overall financial picture including your income and debt.
After you have decided what chapter is the right one to file under, your Inglewood bankruptcy attorney will take care of the filing paperwork for you. When you file, this will trigger an automatic stay and stop collections activity, helping you to avoid repossession or wage garnishment or simply stop experiencing those stressful and annoying collection calls.
You will then continue with the required steps that are mandated for your chapter of bankruptcy. For instance, if you filed under chapter 13, your Inglewood bankruptcy lawyer will work with you to draft and get approval for a repayment plan in which your creditors are repaid a portion of the balance that is owed to them over a period of several years.
Your Inglewood bankruptcy lawyer will also help you to understand what happens after bankruptcy. Many people are concerned to file for bankruptcy protection because they are concerned about this post-bankruptcy life. In reality, you should be able to get credit easily after the filing in the form of a secured card. You can then use this to slowly improve your credit score. Within just a few years, you should once again be able to qualify for a mortgage and conventional credit card.
Bankruptcy is nothing to be ashamed of or afraid of- it exists for a reason… to help people like you. To learn more about how to file for bankruptcy or for advice on whether bankruptcy is right for you, contact our experienced Inglewood bankruptcy attorneys today. If you are looking for a Baldwin Park, Sylman, Culver City, Hollywood or Beverly Hills bankruptcy lawyer, we can assist you as well and help is only a phone call away.