Debt is America’s number-one stress source, divorce, and discontent. Tens of millions of Americans lose sleep over their financial problems. They lament what has occurred and worry about what will occur. There is relief, and a bankruptcy attorney Sherman Oaks can help you find it.
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Our Debt Shield Services
It has to be paid back in a consumer economy. If your creditor is harassing you, your home is being foreclosed on, or your student loan is now unaffordable, there are some options for you. They are:
- Loan modification
- Debt settlement
- Refinancing
- Bankruptcy
- Student loan payment plans
- Short Sale
- Deed of Trust instead of Foreclosure
Unsecured debt includes doctor bills, credit card statements, loans, and any other debt not collateralized. Secured debt includes car loans, home loans, and other collateral loans.
The Difference Between Bankruptcy Chapters 7, 11, and 13
Chapter 7 bankruptcy is one of the ways of forever and eliminate unsecured debt forever if you qualify by having a higher than prescribed income-to-debt ratio. Chapter 13 debt does not erase debt. The aim is to prevent home foreclosure or repossessions of collateral when secured debt is present. It makes a payment arrangement over a term of three to five years, and any remaining debt thereafter is erased.
Chapter 11 Bankruptcy is utilized most frequently by business corporations, but can be utilized by affluent individuals with complex financial profiles. Chapter 11 allows corporations to maintain operations while reorganizing debt under the court’s protection. Unlike Chapter 7, in which unsecured property is liquidated at auction, Chapter 11 is utilized to restructure debt so it may be paid out over the long term.
Bankruptcy Chapter 7 vs. 13
Every year, US bankruptcy law assists hundreds of thousands, including thousands of Californians. Individual bankruptcies (not corporations) are overwhelmingly falling under Chapter 7 or Chapter 13 of the Bankruptcy Code. The two bankruptcies are analogous but have a few apparent distinctions, which make one more suitable to some people than the other. How do you know which bankruptcy form is best for your case? The following is an outline of the two types. Call us to experience instant relief and personalized attention from a bankruptcy attorney Sherman Oaks with the expertise and capability.
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When to File Chapter 7?
Chapter 7 is a way of discharging unsecured debts, such as credit card debt, medical bills and hospital bills, personal loans, and other uncollateralized debt. You will have to either make a monthly income below the median state income for your household size or meet a means test to be eligible. This is done by calculating your disposable income after subtracting all your expenses and income.
When Is Chapter 13 Better?
Chapter 13 does not share the same low-income threshold as Chapter 7, thus, it is easier to qualify. The Trustee won’t sell your property under Chapter 13, so you don’t have to worry about that and can’t trade off the exemptions like you would in Chapter 7. Chapter 13 won’t discharge as much debt as Chapter 7. You can negotiate so that you pay your debts over several years (usually three to five years) with an affordable monthly payment. You can stretch, reschedule, or consolidate most of your debts at your whim. The rest of the debts can be gotten rid of. You will be guaranteed that your creditors will agree to the plan, and they will stop harassing you. If you have a job, Chapter 13 will place your finances at your fingertips.
This form of bankruptcy, in addition to giving you room to breathe so you don’t lose your house, can be used to stop a foreclosure that’s already in progress. In other cases, you can roll over your overdue mortgage payments into your Chapter 13 bankruptcy and lower your mortgage balance. You can even wipe out a second mortgage in some cases.
On the other hand, Chapter 7 is not allowed to assume a secured debt such as a mortgage. Chapter 13 is an appropriate remedy for homeowners who cannot pay their mortgage or have received a notice of default from the bank.
Why Hire a Bankruptcy Expert?
Lots of Americans might consider bankruptcy to be bad, but the truth is that it’s an incredibly powerful financial tool you can use to get your life back on track. Most folks have only two options for bankruptcy, however: Chapter 7 or Chapter 13 – if you happen to be one of those unusual occupations, such as a farmhand, fisherman, or other unusual occupation, then Chapter 11 is available to you. On the surface of it, it would be easy to decide between the two. Some people like to do it on their own on the bankruptcy with no lawyer. Although this is possible, it is not usually recommended for most debtors.
Both types of bankruptcy have pros and cons, and an attorney will examine your case thoroughly to determine which is best for you. This is only one of several reasons why you should hire a bankruptcy expert. The bankruptcy attorney Sherman Oaks can navigate you through bankruptcy in a way that’s more convenient for you and less expensive to boot.
A Lawyer Will Get Creditors off Your Back in a Flash
Creditors and collection agencies have some rules and regulations to follow when contacting you. A seasoned attorney will make sure creditors obey the law and prosecute the law when they try to break it by making constant contact with you when you are filing for bankruptcy.
A Bankruptcy Specialist Will Meet Deadlines And File Properly
Even though you may be highly experienced with finances, bankruptcy can be overwhelming. You will have to fill out a lot of paperwork, maintain accurate records, locate various financial documents, and much more. Having an attorney to accomplish all this on your own can save you a significant amount of money and time.
Bottom Line!
Here at Tenina Law, we are here to help you wherever you are. Our team of bankruptcy attorney Sherman Oaks is here and committed to helping you navigate your financial problems. Call Tenina Law today for an appointment with a free consultation.
