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The best attorneys to file for affordable bankruptcy in California

Bankruptcy can provide you with much-needed relief in times of financial distress by either eliminating your debts, or providing you with a restructured plan for debt repayment. Though you will get rid of your debt but not without some serious consequences, it may remain on your credit report for 7 to 10 years, and a co-signer may be responsible for paying at least some of the debt. Moreover, not all of your debt can be eliminated, and you may not necessarily get a clean slate. 

 

However, if your debts have become overwhelming, and you are unable to repay them under your current circumstances with your best efforts, you may consider filing for bankruptcy. Most individual bankruptcies in the US are filed either under Chapter 7 or Chapter 13 of the US Bankruptcy Code. Under Chapter bankruptcy, a trustee will be appointed by the federal court to liquidate your nonexempt assets to pay creditors. There are priority rules for paying the debts. The applicant filing for affordable bankruptcy California will have to complete several forms, including a petition to the court. For this, you can take the help of expert attorneys, such as the ones available with Recovery Law Group, who can help you file details of the debtors’ finances, incomes, expenses, and assets. 

 

Automatic stay on creditors collection activities 

 

The lawyer working with you for affordable bankruptcy California will ensure that your creditors do not harass you once bankruptcy is filed. This happens due to the Automatic Stay that automatically becomes enforceable as soon as you file for bankruptcy. Automatic stay will prevent your creditors to stop all collection activities immediately, including making you phone calls, sending you emails or text messages, visiting your premises or office, or calling your family members or colleagues. The bankruptcy court will appoint a trustee to oversee your affordable bankruptcy California process, and determine which assets can be liquidated to repay. The trustee can also schedule meetings with your creditors, where the validity of your petition and finances is confirmed. 

 

Means Test for Chapter 7 Bankruptcy 

 

To qualify for Chapter 7 bankruptcy, you must qualify a Means Test. To pass the test, your average monthly income for the past six months of the size of your family should be less than the average median income in the state of California. However, if you fail to pass the Means Test, your Recovery Law Group’s providing you with affordable bankruptcy California can suggest you to file for bankruptcy under Chapter 13. Under Chapter 13, you will be given the option to repay your outstanding debt over a period of three to five years. It will help you save your house and car, and also wage garnishments by the creditors. 

 

Repayment plan under Chapter 13 bankruptcy 

 

You will also have to attend a credit counseling course at least 180 days before filing for Chapter 13 bankruptcy, from an agency approved by the Department of Justice U.S. Trustee Program. Your monthly Chapter 13 payments will begin from the month you file. If the bankruptcy doesn’t confirm your plan, the trustee will refund your payments. Once you make all the payments, any remaining debts will be discharged or eliminated. However, in order to discharge your remaining debts under Chapter 13, you must make all payments, be current on child support and alimony obligations, and complete a debtor’s education course. 

 

 

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