Bankruptcy Lawyer Near Watsonville
Sometimes, the road of life takes you through some pretty unexpected curves. Every now and then, you might wind up with financial stresses, including debts that you cannot pay. Bankruptcy can help you get back on the right financial path, but this process is not for everyone. The best course of action is to consult with a bankruptcy lawyer near Watsonville about your options.
You Need To Understand What Bankruptcy Can Do For You
Bankruptcy offers you different paths to escape debt you cannot hope to repay without assistance. As an individual debtor, you have two choices in bankruptcy. Those choices are a Chapter 13 bankruptcy or a Chapter 7 bankruptcy. The two are very different in their terms, but each can help you get out of a difficult financial situation. Each kind of bankruptcy has advantages and disadvantages, and Chapter 7 is – by far – the most common form of consumer bankruptcy in the U.S.
Under Chapter 7, you do not repay any of your unsecured debt or take part in a payment plan with the court. If you still owe money on your car, for instance, you can reaffirm that debt and continue making your monthly payments. You also can reaffirm the mortgage on your home and continue paying that.
However, if the amount of equity you have in your home – how much your home could be sold for versus how much you still owe on your mortgage – exceeds state bankruptcy exemptions, you might have to sell your home. In California, the basic homestead exemption is $300,000, but can range up to $600,000 if you qualify. If your equity is less than the exemption you qualify for, you would not have to sell your house.
Any additional nonexempt property will be sold and the proceeds divided among your creditors, such as credit card companies. Once that money is expended, most of your remaining debts are discharged, and you no longer owe that money. Some debts, such as student loans and secured loans, are not discharged. Still, there is no repayment plan, and you likely will be able to keep your personal possessions.
Many people are afraid of losing everything in the Chapter 7 liquidation process, but this rarely happens. Our attorneys know how to skillfully apply exemptions to protect as much property as possible, and some Chapter 7 filers keep everything while still receiving a discharge of their debts. This is only one of many reasons why it is so important to have help from the right bankruptcy lawyer from the start of the process. We work to limit what you lose and maximize what you gain from the bankruptcy process.
If You Are Contemplating Bankruptcy In The Watsonville Area, Talk To A Qualified Bankruptcy Attorney
If you are in a difficult financial situation and can see no way out, bankruptcy can help you solve that particular problem. If you are considering bankruptcy, you should talk to the attorneys of Miranda, Magden & Miranda, LLP. We have experience finding debt-relief solutions that work for each individual client, so please contact us today.