2020 has been a difficult year for everyone. The pandemic has created unprecedented economic chaos, and thousands of Americans have been deeply affected as a result. Thousands of people have had to close their businesses due to quarantine, and many others have lost their jobs for the same reason. All this economic uncertainty has forced many to resort to debt in order to survive. However, in the midst of this financial catastrophe, there are a couple of things you should know: First, you still have options, and second, you don’t have to deal with this alone.
Now, many people are unaware that there is a legal option that can help them overcome these economic hardships, one that can allow them to rebuild their finances from scratch – bankruptcy.
However, the process of filing for bankruptcy can be more complicated than it seems, so if you are thinking about using this legal option to get rid of your debts to start afresh, you should work with a bankruptcy lawyer in Huntington Beach CA.
Filing for bankruptcy can be a stressful process which is why you need a lawyer you can trust. The attorneys at KT Bankruptcy, a law firm that has helped many Californians with their bankruptcy cases, will guide you every step of the way and not let anything interfere with your fresh financial start. If you want your bankruptcy process to be simple and efficient don’t hesitate to contact them for a free consultation.
How can Bankruptcy help you?
Historically, bankruptcy has unfairly earned a bad reputation. Some believe that filing for bankruptcy means sinking into your financial problems when the reality is that bankruptcy can be a lifesaver for you during these uncertain times.
You may ask yourself, what is bankruptcy? Bankruptcy is a legal process that allows both individuals and businesses to get rid of most of their debts so they can get a fresh financial start.
Besides freeing you from your debts, bankruptcy can also bring you other significant benefits. For example, once you file for bankruptcy, your creditors will be forced to stop collecting on your debt. So, if you are being harassed by your creditors, this could be an opportunity to regain your peace of mind. Another important benefit is that bankruptcy can help you stop the foreclosure process on your house. Ironically, bankruptcy could save one of your most valuable assets, your home.
Types of Bankruptcy
In the U.S. there are three types of bankruptcy, which fit different economic contexts: Chapter 7 bankruptcy, which involves liquidation of assets; Chapter 11 bankruptcy, designed primarily for companies; and Chapter 13 bankruptcy, which involves the development of a specific payment plan.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is ideal for those who are looking for a quick solution to their debt problems. This process involves the sale of your non-exempt assets to discharge your debts.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is considered a debt reorganization and is often used by large companies that are struggling with financial problems to stay in business and become profitable again.
Chapter 13 Bankruptcy
For those individuals who wish to eliminate their debt, but want to avoid selling their assets in the process, Chapter 13 bankruptcy, also known as wage earner’s bankruptcy, is the best alternative. In this case, the filer will develop a monthly payment plan, with the help of their attorney, that fits their budget. These payment plans usually last from 3 to 5 years, depending on the accumulated debt.
Talk to a Bankruptcy lawyer in Huntington Beach
To find out which bankruptcy chapter fits your situation best, you should consult with a bankruptcy lawyer near me. His experience will allow him to analyze your financial situation and determine the best option for you.
If you want to work with a bankruptcy lawyer you can trust, feel free to contact KT Bankruptcy lawyer for a free consultation.
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