A Fresh Start With Bankruptcy

Bankruptcy attorneys in Monrovia, CA hear client stories about debt every day

. Some people get into debt due to medical bills. Other reasons include loss of job, divorce and simply spending more than is earned. By the time people decide to visit the bankruptcy attorney, they have reached a point of desperation. Its not pleasant being deeply in debt.

Bankruptcy is a solution to a debt problem, but its not intended to be a way to justify poor spending habits. In other words, its a chance to start fresh without crushing debt, but it was never intended to encourage people to spend more than they earn.

Starting Over

The number of bankruptcies in the country has been rising with the onset of the recession. Most people wait too long to ask for help and by the time the bankruptcy attorneys in Monrovia, CA see the client, bankruptcy really is the only solution. Chapter 7 allows you to discharge most debts through the courts and start over financially.

When a Chapter 7 is filed, you will see an almost immediate stop to debtor collection efforts. The law requires creditors to stop trying to collect debts upon notice you have filed for bankruptcy. When the collection calls and letters stop, it can almost seem like a miracle after so many months or years of evading debtors. The bankruptcy attorneys in Monrovia, CA will insure all listed creditors are notified that you have filed a Chapter 7.

The trustee represents the court and is charged with determining your legal exemptions, amount of income and debt, and value of nonexempt assets. You will most likely be allowed to keep some assets like a car you own, if needed to get to work, or your home. However, if the car is not paid for then you will have to negotiate with the lender. The bankruptcy is not intended to wipe you financially. It is to give you a fresh start, and the best way to do that is to let you keep enough assets to start over again.

Many people decide to give up their house also even if allowed to keep it by law. Since the recession started in 2008 that has been a common occurrence. In fact, many clients consulting with the bankruptcy attorneys in Monrovia, CA are several months behind on their house payments and the property is being foreclosed on.

It is the job of the trustee to decide which assets are exempt by law and which credits will be paid through the sale of assets. Secured creditors are paid first. The collateral or the value of the collateral is distributed to the creditor. If there are enough assets left, the trustee will then pay unsecured priority claims. These claims include child support or alimony.

Finally the unsecured creditors are paid. For the average family, there are usually no assets to pay credit card debt or other unsecured debt.

Its always important to consult with bankruptcy attorneys in Monrovia, CA to insure that exemptions are maximized. The exempt assets cannot be touched by creditors according to the law. The bankruptcy law is complex and that is exactly why you need legal advice.

by: jessekaleb

POST COMMENT

Hiring The Right Bankruptcy Lawyer Trying To Get A Loan Immediately After Bankruptcy Bankruptcy Vs. Foreclosure: The Pros & Cons Of Both How To Find The Best Bankruptcy Lawyer Harrisburg, Pennsylvania Files For Bankruptcy Chapter 7 Or Chapter 13 Bankruptcy Know The Difference Britain's Lenient Bankruptcy Laws Bankruptcy Attorney -to Safeguard Your Inheritance Bankruptcy Lawyer -to Guard Your Inheritance The Real Benefits Of Provo Bankruptcy Lawyer Finding Help With Provo Bankruptcy Cc Brown Law - Bankruptcy Creditors' Meeting Is More Than Just A Mere Formality Bankruptcy In Utah - Contribution Of Cc Brown Law Attorneys In Your Bankruptcy Filing