In today’s difficult economy many people find it hard to exist, let alone have extra money to pay their debts. One illness can end up costing more than some can pay back in a lifetime. Others have lost their jobs and can’t seem to find another, no matter how hard they try. Unfortunately, for all of them, the bill and debt collectors still call day and night, harassing them for money that they don’t have. Speaking to a personal bankruptcy attorney in San Jose CA can help those in over their head financially. Depending on their situation, they can either get their debts dismissed altogether with a Chapter 7 bankruptcy, or if they have the ability to pay something, they may qualify for a Chapter 13 bankruptcy.
If the debtor has no assets to speak of and much unsecured debt, a personal bankruptcy attorney in San Jose CA will most likely suggest filing a Chapter 7 bankruptcy. This bankruptcy is for those who have a vehicle of little value, little money in the bank and no additional items of worth. Papers are filed for bankruptcy protection, a court date is given and after ward, all listed debts are discharged. This gives the debtor a clean slate to begin again.
For the debtor that does have assets and a way to make payments, but is financially overwhelmed with debt, it may be suggested to file a Chapter 13 bankruptcy. As soon as papers are filed, the harassing phone calls stop. A budget is proposed, allowing the debtor to pay all disposable income toward his debts for a period of 3 – 5 years. If this is approved in court, the debtor may keep his assets untouched and pay monthly instalments, which are usually pennies on the dollar toward the debt. After the agreement is satisfied, the remaining debt amounts are discharged and the debtor is free and clear.
Both of these plans allow those in financial trouble a way to become solvent again. By filing either a Chapter 7 or Chapter 13 bankruptcy, it gives the debtor a way out of a difficult or impossible situation, and a solution that allows them to build themselves back up after a difficult financial crisis. For more information visit Shulman Law Office.
