Chapter 7 Bankruptcy in Watsonville CA
What You Should Know Before Filing Chapter 7 Bankruptcy in Watsonville CA
Sometimes you can lose control of your financial situation through events such as sickness or finding yourself unemployed. Whatever the situation might be, bankruptcy may become a serious option for you. What are the two main types of consumer bankruptcy? Consumers can file Chapter 7 or Chapter 13. This is a short guide on Chapter 7 bankruptcy in Watsonville CA. Youll find out what Chapter 7 bankruptcy is, the advantages and disadvantages to Chapter 7 bankruptcy in Watsonville CA, what’s required to file and how to start. This page will help you understand Chapter 7 bankruptcy in Watsonville CA.Bankruptcy can become a serious option for you due to unemployment or bad health. The two types of consumer bankruptcy consist of Chapter 13 and Chapter 7. We will cover Chapter 7 bankruptcy in Watsonville CA here. We will cover how to file, what to expect, and benefits vs. disadvantages of Chapter 7 in Watsonville CA. When you are done you will have a better understanding of the process of filing for Chapter 7 bankruptcy in Watsonville CA.
Chapter 7 Bankruptcy in Watsonville CA, What is it?
Chapter 7 bankruptcy in Watsonville CA takes the least amount of time. Most are sell out or liquidation cases and it is the simplest form of bankruptcy. You will not have to make payments to pay back debt with Chapter 7. You are in danger of losing more of your assets with Chapter 7 bankruptcy in Watsonville CA. One myth is that bankruptcy does the most damage to your credit. The reality is the damage was being done the longer you accounts stayed delinquent. Once the delinquent status is removed your credit score could improve. Selling your assets to pay for your debt is the core of Chapter 7 bankruptcy in Watsonville CA. Next, we’ll discuss the pluses and minuses to filing Chapter 7.
Advantages and Disadvantages to Chapter 7 Bankruptcy in Watsonville CA
After filing a stay is issued requiring all creditors to stop contacting you. The process of Chapter 7 bankruptcy in Watsonville CA is also fast, usually only taking 3-6 months to complete the whole process. Not all debts are removed. Student loans, child support in addition to income tax obligations won’t be absolved. A further disadvantage to Chapter 7 bankruptcy in Watsonville CA is in scarce instances property may be sold off to pay off your debt.
What Can You Expect After You File
Most Chapter 7 bankruptcy in Watsonville CA will require you to take credit counseling classes. The court will then inventory all your assets and debt, sell the qualified assets and pay your creditors in the order set by the settlement scheme. Sometimes homes with no equity and some vehicles can fall under exempt property and not sold to repay the debt.
The first thing you should do when considering filing any bankruptcy is contact a qualified bankruptcy attorney. They will be able to asses your situation and help you decide if bankruptcy is needed and if the right choice for you in Watsonville CA is Chapter 7 bankruptcy.
Sometimes things happen and your finances get out of control. When this happens you want to look at your situation with reason. You should now understand what Chapter 7 bankruptcy in Watsonville CA entails, what will happen if you file, and the benefits and problems that come with filing. Get help before you file. The laws can be difficult and a competent law firm can be your greatest asset when trying to determine if Chapter 7 bankruptcy in Watsonville CA is right for you.
Stephen H. Kim, Attorney at Law
10 S Filice St #1, Salinas, CA 93905
831-221-5022