The common plan for life is to work hard, raise a family and retire with a comfortable nest along. However, life often has a way of intruding in those perfect plans. A catastrophic illness can wipe out savings in a matter of months. The aftermath of a destructive storm or other natural disaster can also have a devastating impact on a family’s net worth especially if insurance to cover the damage. In Southern California, we know all too well how mudslides, wild fires and earthquakes can wipe out homes in a blink of an eye. Even the hardest workers and most diligent money savers can’t always triumphant over that. Add to these worst case scenarios the possibility of losing a job and it’s easy to see why so many hard working folks have gotten into financial trouble. When it appears all is lost, there are actually options that can help you regain your financial security. That would be through a bankruptcy filing.
Filing for bankruptcy with the help of a bankruptcy attorney should not be thought of as the end of the line for your financial future. Instead, it’s a way of “rebooting” your finances to provide you and your family with a fresh start. Because a bankruptcy is a court procedure it is advised that you receive counsel from any experience lawyer like a bankruptcy attorney who specializes in these matters. They will be in the best position to help you navigate through the filing process. First, you’ll have to decide which form of bankruptcy is right for you.
A Chapter 7 bankruptcy filing is often referred to as a liquidation bankruptcy. This means that anything you own can be put up for sale or auction to pay off your debts. This is a more difficult type of bankruptcy to file because you essentially have to prove you have the assets to pay off those debts in the first place. A Chapter 13 bankruptcy filing allows you to keep your assets but sets up a structured repayment plan that you must adhere to. Typically, you could be given up to 5 years to repay all your debt that would fall under this type of filing. Which is the best option for you? Ask a Woodland Hills bankruptcy attorney for advice. They’ll be able to look at your financial picture and guide you in the right direction.
As you enter into a consultation with a bankruptcy attorney you’ll learn that either bankruptcy filings cover medical expenses, credit card bills or any unsecured loans. With a secured loan such as a home mortgage or car loan, the finance company is allowed to repossess that property to recoup their debt. What’s not covered are student loans, alimony payments, taxes or money you might have to pay out as compensation for a DUI convictionWhether you seek help from a Woodland Hills bankruptcy attorney or a bankruptcy attorney they will both inform you that a bankruptcy filing stays on your credit history for up to seven years. This makes it extremely difficult to get credit or borrow money but it’s still the most proactive course to take to regain your financial independence.