Bankruptcy is a condition in which individuals who cannot pay their bills can seek legal help and get a fresh financial start. Filing bankruptcy immediately stops all your creditors from collecting debts from you until your debts are sorted out by law. It can be referred to as ‘discharge’ of debts legally, which allows you to have a fresh financial start. It is an essential part of the chapter 13 lawyers in rancho, which mainly focuses on helping people and the families residing in Rancho and finding the best solutions to their debt problems.
How often can you file bankruptcy?
You could not receive a discharge to debts according to Chapter 7 if you received a bankruptcy discharge under a Chapter 7 case filed in the last eight years or a Chapter 13 case in the last six years.
You cannot receive a discharge to debts according to Chapter 13 if you received a bankruptcy discharge under a Chapter 7 case filed in the last four years or a Chapter 13 case in the last two years. If you did not receive a discharge in the previous bankruptcy filing, you can file and receive a discharge(if permitted by law) without any time restrictions.
Types of bankruptcy-
There are four types of Bankruptcy Laws that are applicable under the chapter 13 lawyers in rancho.
- Chapter 7– Also known as ‘Liquidation.’ It requires the debtor to give up properties that exceed certain caps so that the money gained after selling the properties can be used to pay the creditors.
- Chapter 11– Also called ‘Reorganization.’ It is generally used by persons with huge debts, mostly businessmen.
- Chapter 12– It is reserved exclusively for family farmers.
- Chapter 13– Also called ‘Debt adjustment.’ Here, the person plans to pay debts in parts or whole after a certain time and if legally approved.
Cost to file bankruptcy-
This is important because you are already bankrupt, and filing for that will subtract from your empty wallet. It now costs $306 for filing bankruptcy under chapter 7 and $281 for filing bankruptcy under chapter 13, whether for one person or a married couple. You may request the court to pay this filing fee in installments if you cannot pay all at once. But if you go for an Attorney, you are bound to pay his charges as per his demands.
After-effects of filing bankruptcy-
Many people have a question of whether they can own anything after bankruptcy. You can keep anything that you obtain after the bankruptcy is filed along with the exempt property. However, if you receive any monetary or property benefits within 180 days of filing bankruptcy, that money has to be paid to creditors if the property or money is not exempt by law. In most cases, you will not be losing your house or car if you file for bankruptcy, as they are considered exempt by law. Another point to keep in mind is that bankruptcy does not wave the debts that are not listed in the bankruptcy petition.
Impact on citizens of NYC-
Citizens of this region are delighted with thelaw, stated in chapter 13 lawyers in rancho. This law provides a sigh of relief to all classes of people when their pockets are empty. From businessman to office clerk, everyone can get easy access to Bankruptcy’s facility to waive off their debts or at least bate them.The laws have been updated to keep away people who the fake story of bankruptcy. The recent orders state that a person who has filed for bankruptcy cannot be discriminated against in his workplace or any other place for not paying his debts. This verdict itself is enough to justify the wisdom of the government in helping bankrupt people in Rancho.