Monday, July 23, 2012

Discover Bankruptcy Help San Mateo Attorneys Provide

It is common for people to consider filing bankruptcy when they find they are financially over extended. If you find yourself in this situation you will need to understand what debts can be eliminated and which cannot. Filing either a Chapter 13 or Chapter 7 will help you eliminate credit card debt, however you cannot include such things as child support or student loans. It is a good idea to look into the bankruptcy help San Mateo provides.

When you are looking at your financial situation, you may consider filing for bankruptcy. You should have a good understanding what you can include in your case and what you cannot. A Chapter 7 may not help in certain cases, while a Chapter 13 can. See the help of a lawyer to help you learn which filing is right for you.

You need to know what debt liquidation means for you. If you have a lot of credit card debts, this will successfully eliminate them. Keep in mind that if you have secured credit cards you cannot discharge the debt. This is because the debt has been secured by the purchases you made using the card. The creditors have the right to repossess the property. Only unsecured credit card debt or other unsecured debts can be eliminated.

Filing a Chapter 7 can completely rid you of the unsecured debt you currently have. If you file a Chapter 13 a repayment plan is developed that will require that you pay a part of the unsecured debts. However, if at the end of the repayment plan you have unsecured debt remaining, it will be discharged.

Filing your case can also stop collection actions and harassment from creditors. Once you have filed your petition you receive an automatic stay. Creditors should stop attempting to collect the debt. If they continue with threatening letters and phone calls you need to seek the assistance of your attorney. Also, contact your attorney if there is any attempt to foreclose on your mortgage or repossess a car.

You should also understand that a creditor can place a lien against your property and give them the right to repossess. This kind of a lien will survive liquidation of debt if the proper steps are not taken to prevent it. Your lawyer can deal with this type of lien by imposing the proper procedures.

Understand that bankruptcy will not keep a secured creditor from taking back property. You cannot include child support, student loans, or alimony in your case. Also, bankruptcy cannot be used to get rid of a tax debt you may have. Court fines and penalties for violation of laws, and debts that are related to the death or injury of another as the result of driving while under the influence, cannot be included in the filing and eliminated.

Each situation varies and needs to be assessed by someone who is well versed in the law. A professional will be able to determine what type of case you need to file. If you are thinking about what remedies may be at your disposal, you may want to the bankruptcy help San Mateo can provide.

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