Experienced bankruptcy lawyers in California to provide you with the right legal advice for your bankruptcy options

 The US Bankruptcy Code is designed to provide a legal reprieve to individuals and businesses who are unable to repay their outstanding debts or obligations. All bankruptcy cases in the US are heard in the federal courts, who will appoint a trustee, to represent the debtor’s estate in proceedings. Before filing for bankruptcy, you may be presented with some alternatives by your creditors, like forbearance, wherein you will be allowed to postpone payments for a period of time. You may be provided with repayment plans to repay your debt in smaller amounts, stretched over a longer period. Some lenders also offer you a lower interest rate over the remainder of your loan.  

  

However, if nothing works out and you are only left with bankruptcy as the last resort, then you can contact specialist bankruptcy law firms, such as Recovery Law Group. They have specialist bankruptcy lawyers California who have helped thousands of individuals, including businesses, with their bankruptcy filings. Chapter 7 bankruptcy is for individuals for whom the debts have become overwhelming, and cannot be repaid by the individual despite their best efforts. A court-appointed trustee will make a list of your secured debts, which are backed by collaterals, and unsecured debts, which do not have any such backing. Secured debts take precedence over unsecured debts, and holders of secured debts are the first in line to be paid off.   

  

However, your Recover Law Group’s bankruptcy lawyers California will ensure that your exempt assets are not liquidated or sold off to repay the creditors. These include:  

  

·         A certain amount of home equity  

·         Clothing and household goods  

·         Spousal or child support  

·         Some tools of trade  

·         Most public benefits and insurance benefits, and  

·         Most personal injury awards  

  

Filing for Chapter 7 and Chapter 13 bankruptcies   

Any debts after the bankruptcy completion will be discharged or not required to be repaid. To file for Chapter 7 bankruptcy, you will need to pass the Means Test, wherein your past six months’ average monthly income should be less than the Median income of the size of your household in the state of California. However, if you fail this Means Test, your bankruptcy lawyer California may suggest you to file for bankruptcy under Chapter 13. You will be given a reorganization plan, as approved by the court trustee, to repay your outstanding debts to your creditors over a period of three to five years.   

 

Also known as the Wage Earner’s Plan, you must compile a list of all the creditors along with the amount owed to each. In most circumstances, the repayment must provide a substantial payment to creditors, which must be at least equal to what they would receive under other forms of bankruptcy. Your all-outstanding debts will be consolidated into an agreed upon monthly installment, and the trustee will distribute the money to your creditors as per the reorganization plan. Any debt remaining after the completion of bankruptcy will be eliminated.   

  

Recovery Law Group’s bankruptcy lawyers California will ensure that all creditors’ collection activities are stopped as soon as you file for Chapter 7, Chapter 13, or Chapter 11 (or businesses) bankruptcy. If your creditors do continue these collection and harassment activities, the experienced bankruptcy lawyers in California will sue them for violating the court’s automatic stay.