subject: Bankruptcy Advocates San Mateo: The Fundamentals Of Filing [print this page] San Mateo, California is one of many cities where residents are having problems paying their bills each month. Some people have a hard time paying their bills for different reasons. Many people get laid off their jobs and do not have a savings account. Not being good at managing money does not help as well. Bankruptcy lawyers San Mateo law services are essential for going through the court system.
Bankruptcy is a solution when feeling overwhelmed and unable to pay bills on time. Filing means pay back debts with a repayment plan or selling assets to pay creditors. The three main types are Chapter 13, Chapter 11 and Chapter 7.
Chapter 7 involves selling assets and using the money to pay creditors. This method may result in losing valuables, such as antiques, cars or real estate property. Another alternative is attending debt counseling or settling out of court. Creditors want to settle the account and willing to negotiate payments.
Chapter 11 status is used by corporations with financial problems. It works by restructuring debt and giving more time to pay creditors. This filing method can take time and can be expensive.
Chapter 13 help debtors with creating a repayment plan. The plan is used to pay back outstanding debts. This chapter is also called wage earner's plan. Judge requires the debt to be paid off within five years and must have regular income.
Debtors have to submit a variety of different form and can use the assistance of an attorney. He or she can help with negotiating and the filing process. Debtors have to gather paperwork and make a list of assets before declaring Chapter 13, Chapter 11 or Chapter 7. It also helps to collect current credit reports and monthly bills.
Many courts require debtors to meet certain requirements before filing, such as completing a credit counseling program. Counseling teaches students about money management and how to make better financial decisions. The next step is finishing up paperwork after completing the counseling course. Chapter 7 or Chapter 13 requires petitioning the courts and submitting forms. There is also a fee for submitting paperwork.
It is common for creditors to ask for a 341 meeting. A 341 meeting allows for the debtors and creditors to have a meeting and discuss what is owed. Debtors can attend the meeting with an attorney or alone.
Debtors have to attend several court hearings like the 341 meeting of creditors. The 341 meeting of creditors is when the debtor and creditors meet to declare the facts in the case. Debtors can benefit from legal representation when attending the meeting.
Debts like student loans and child support payments cannot be removed and must be paid. Filing Chapter 7 allows debtors to remove certain debts and to start over. Chapter 13 allows debtors to come up with a budget and follow a repayment plan. Overcoming debt allows for releasing stress and making better decisions. Bankruptcy lawyers San Mateo services are essential for negotiating and coming to an agreement with creditors.
