Before you make your final decision regarding filing for bankruptcy, you really should contact a bankruptcy attorney Corona CA. With the attorney’s help, you can get a complete picture of the pros and cons of filing for bankruptcy, as well as your rights and obligations under the law. Here is a sampling of the issues you should go over with your bankruptcy attorney Corona CA.
Chapter 7 or Chapter 13
In some cases, you may have more than one bankruptcy option available to you. If you are eligible for Chapter 7 and Chapter 13 bankruptcy, you will need an attorney’s help to determine which type of bankruptcy will provide the most debt relief and best help you meet your financial goals. In general Chapter 7 is best for individuals who have a lot of unsecured debts like credit cards or medical bills, because it allows you to discharge these debts completely. However, if you fail the means test for Chapter 7, or have lots of assets that you wish to protect from the bankruptcy, you will probably want to file for Chapter 13 bankruptcy. This type of bankruptcy allows you to bring your debts down to a more manageable level by having a judge create a payment plan for you.
Mortgages
If you are upside down on your mortgage, bankruptcy may provide relief. Second mortgages can be stripped and eventually discharged in Chapter 13 bankruptcy. Another option is to use your bankruptcy to eliminate other debts, freeing up cash for you to then put towards paying off your mortgage. Your bankruptcy attorney Corona CA can help you determine how best to handle your mortgage in your bankruptcy filing, as well as protect the equity you have in your home. You will not necessarily have to forfeit your home in a bankruptcy if it qualifies for exemption under the applicable state laws.
Where and What to File
California bankruptcies can be filed in either the federal judicial district where you have been living for the past 180 days, or in the district where your primary residence is located. In some districts, you will be required to fill out and submit additional local forms. Your bankruptcy attorney will be able to help you locate all the necessary forms for your case and file them with the appropriate court authority. With the help of an attorney, you’ll have all your paperwork in order before you make the final decision to file, so there won’t be any unpleasant surprises later on.
