The United States government understands that, at times, consumers may need effective debt-relief options, often for reasons well beyond their control. For this reason, the U.S. Bankruptcy Code is set out in federal law, giving people the right to eliminate overwhelming debt through bankruptcy in certain situations. The bankruptcy process is not always straightforward, however, and mistakes can be costly. It is important to seek help from a Gonzales, CA bankruptcy lawyer if you are considering a bankruptcy case.
At the law firm of Miranda, Magden & Miranda, LLP, we guide clients throughout the bankruptcy process from start to finish. We can help you decide whether bankruptcy is the right solution for you, and help you pursue a successful case. Contact us today to discuss your legal debt relief options.
The Benefits of Bankruptcy
People in the U.S. can become over their heads in debt for many reasons. Divorce, illness, accidents, unemployment, and more can all cause financial problems in your household, and you may find yourself avoiding the phone or mail, or facing lawsuits or wage garnishments by creditors. In many cases, bankruptcy can be the solution you need to clear your debt and start over.
Some benefits of a bankruptcy case might include:
- A court order called the automatic stay will halt all collection attempts, garnishments, and legal actions against you, including foreclosure, evictions, and vehicle repossession
- The court can order the discharge of many of your debts, which means you no longer have any obligation to make payments
- You might have an easier time paying your nondischargeable debts once you eliminate the dischargeable debts
Talk to our legal team about how bankruptcy can help in your specific situation.
Your Bankruptcy Options
As a consumer in the U.S., you have two major options when it comes to bankruptcy – Chapter 7 or Chapter 13. While some consumers may file under Chapter 11, these cases are rare. The following is a brief overview of possible bankruptcy options.
Often called a “straight” or “liquidation” bankruptcy, Chapter 7 is a relatively quick process that can award a debt discharge in exchange for the liquidation of certain assets and property. An experienced attorney can help protect as much property as possible, and many Chapter 7 filers do not lose anything.
Higher earners might not qualify for Chapter 7 bankruptcy, so another option is to file under Chapter 13, commonly known as “reorganization” bankruptcy. A Chapter 13 case involves a bankruptcy trustee combining and prioritizing your debts, while the court sets a repayment plan based on your income and expenses. After your repayment plan successfully concludes, you can obtain the discharge of remaining debts.
Do Not Wait to Schedule Your Consultation with a Gonzales, CA Bankruptcy Lawyer
Bankruptcy helps many people each year in the Seaside area, and you should never hesitate to learn more about the process. You do not have to continue living with debts you cannot pay, so please contact the bankruptcy attorneys at Miranda, Magden & Miranda, LLP to learn more today.