Jul
29
Bankruptcy Lawyer
Filed Under Home Loans
There are advantages and disadvantages to both debt settlement and bankruptcy depending on each individuals set of fate. A bankruptcy attorney that only works on debt relief for clients is in all probability the best person to consult if you are struggling financially or trying to stop foreclosure of your home. A bankruptcy attorney can perform a “means test” and determine if you are eligible for chapter 7 or chapter 13 based on your income, dependants and mortgage payments. If you are eligible for a chapter 7 you might be in a better position filing bankruptcy rather than debt settlement. Bankruptcy chapter 7 might allow you to completely wipe clean all your unsecured debt and keep your automobiles and your house, while chapter 13 would be a repayment plan of typically pennies on the dollar. It’s important to talk with a bankruptcy attorney that has experience with both chapter 13 and chapter 7, including debt settlement. Most bankruptcy lawyers only file bankruptcy and don’t particularize in debt settlement so they are more likely to push you to bankruptcy chapter 7 or chapter 13. Filing bankruptcy rather than debt settlement for individual with a small amount of credit card debt might or might not be a wise choice based on several factors. Consulting a bankruptcy attorney that has the ability to file bankruptcy along with debt settlement will offer you your best options and guide you in your decision to either file bankruptcy or go into a debt settlement program. Most debt settlement companies tell you what you want to hear and do not properly let on the downside of debt settlement or the upside of chapter 7 bankruptcy. When you file bankruptcy chapter 7 you can wipe clean all your debt completely and annul judgments and liens. If you opt to engage in a debt settlement program instead of opting to file bankruptcy you should make sure to use a bankruptcy firm for the best results. A bankruptcy lawyer can usually guard you from your creditors, they are less likely to sue you if they know you will file bankruptcy and they’ll get nothing. In a debt settlement program you will usually pay 50 percent of what you are indebted to your creditors rather than 3 percent to 10 percent in a chapter 13. In passing the means test, you can file chapter 7 bankruptcy and likely pay nothing other than your fee for filing bankruptcy and your bankruptcy attorney fee.
The problem with debt settlement companies is that they typically take the fee for the debt settlement up front and make no guarantees. A bankruptcy attorney who offer debt settlement are a much more stable route and is held to a more rigid criterion than a debt settlement company. Also, a bankruptcy attorney can offer you legal representation and creditor defense from harrassment by your creditors. While filing bankruptcy may be the final straw for most, the truth is that bankruptcy is an easier option than people may think. If you would like more bankruptcy information or to see if debt settlement is a more prudent plan of attack, the bankruptcy attorneys at Zhou & Chini offer free consultations. To find a bankruptcy attorney in California that also provides debt settlement options click on: www.BankruptcyAttorneyinCalifornia.com.