When you find that you are at the end of your rope financially and the creditors will just not stop knocking on your door or sending threatening messages, it may be time for you to declare bankruptcy. This is not an easy thing to do. However, it may give you the peace of mind that you need to get your life back in order.
Declaring bankruptcy is not easy. It is not something that anyone should go through alone. If you have decided to take this bold step, you ought to consider getting some help. You can do this by contacting bankruptcy attorneys. These are attorneys that have specialized in bankruptcy law. They will be able to advise you based on their experience and knowledge of the law. You will greatly increase your chances of winning your petition by hiring a professional in the area.
Before you approach any of the bankruptcy attorneys Lancaster, CA that you may be interested in, it is important that you determine what type of bankruptcy they specialize in. Although all attorneys specialized in bankruptcy law are able to interpret the whole bankruptcy law, these attorneys tend to specialize in specific chapters to be more efficient for their clients. You therefore need to understand which type of bankruptcy you will be filing for so that you can determine the best lawyer to approach.
Chapter 7 bankruptcy is probably the most common type of bankruptcy filed in the country. Under this chapter, all your assets will be liquidated to pay off your creditors. A trustee is elected by the court to oversee the liquidation and payment of the creditors. The creditors that are owed a greater amount of money are usually the ones that are paid first.
If you only need to get some respite from your creditors and pay them back when you have restructured your finances and assets, you may approach bankruptcy attorneys that specialize in chapter 11 bankruptcy. The court must approve a plan for reorganization and present it to the creditors. If the creditors agree to the plan then you can pay them back accordingly.
Chapter 13 is an option for those who have a regular income and have debts of less than one million. This chapter allows you to repay your creditors using your future income. You will therefore be able to keep your home.
If you operate a family farm or farming business, bankruptcy attorneys may assist you to file for bankruptcy under chapter 12. You will be allowed to repay your creditors from the future income from your farm.
The final type of bankruptcy that bankruptcy attorneys can help you file is chapter 9 bankruptcy. This however is only for small organizations, government agencies, and municipalities.