Canoga Park, California
When you are drowning in debt and coping with debt collectors on a regular basis, you may feel as if the debt is ruining your life. In order to help people to escape from this desperate situation, the bankruptcy code has created different options for filing for bankruptcy for both consumers and individuals. When you find yourself unable to pay back your debts, it is time to contact a Canoga Park bankruptcy lawyer to look into these options and to determine if one is right for you.
Filing for Canoga Park Bankruptcy
Individuals who seek bankruptcy protection by filing for bankruptcy will typically choose between chapter 7 and chapter 13 bankruptcy. Chapter 7 is also called "liquidation" bankruptcy because there is a sale of non-exempt assets that is part of the process. Proceeds made during the sale are split up among creditors, and the remaining amount owed on eligible debts is then forgiven or discharged. Chapter 13 is called wage earners bankruptcy and is used by people who make too high of an income to qualify for a chapter 7 filing. It allows for the debtor to keep assets, but it requires a 3-5 year repayment plan.
For individuals with a lot of debt, or for businesses that have debts and need bankruptcy protection, chapter 11 is another available choice for bankruptcy filing. Chapter 11 tends to be more complicated, but allows for the restructure and renegotiation of larger amounts of debt than other filings.
Your Canoga park bankruptcy lawyer will review your personal financial situation with you, or will review the finances of your business, in order to determine both if bankruptcy is the best option and which chapter is best to file under. Your Canoga park bankruptcy attorney will then take care of all necessary steps associated with the filing.
The Canoga Park Bankruptcy Process
After you have filed for bankruptcy, the bankruptcy process will vary depending upon what chapter of bankruptcy you sought protection under. Your Canoga Park bankruptcy attorney will help to prepare you for this process so you understand what to expect every step of the way. Your attorney will also work to ensure that there are no problems or surprises, and will assist you in dealing with creditor objections or with any filings from creditors that request relief from the automatic stay (the protection put into place that stops any collectors from coming after you once you have filed for bankruptcy).
Your Canoga Park bankruptcy attorney can also help you to understand what happens after bankruptcy. For instance, your lawyer will explain to you that bankruptcy likely will not have as adverse of an impact on your credit score as you think and in some cases might actually help that score since you'll no longer get negative information posted regularly by creditors to whom you are in default.
The sooner you contact a Canoga Park bankruptcy lawyer, the sooner you can get the process underway and begin to move on with your life. Our experienced attorneys are ready to help you today. If you are looking for a San Pedro, Simi Valley, Los Angeles, Culver City or Hollywood bankruptcy attorney, we are also available to provide you with legal assistance and advice.