Where To Search For Help When You Have Debts And Income Is Barely Enough To Cover Your Own Needs?

Where To Search For Help When You Have Debts And Income Is Barely Enough To Cover Your Own Needs

It is believed that with the announcement of bankruptcy a person loses everything: house, car, other property, bank savings, creditworthiness, and decent image of a business man. In short, death is better than such a life. But is it true that declaring bankruptcy, a person loses all that he had? The answer is no. On the contrary, bankruptcy is sometimes the only way out of a difficult situation, the rescue of debt and lenders who are willing to tighten your neck with financial stranglehold. A fully official U.S. laws provide an opportunity.

So, if a person is unable to meet the demands of its creditors, or feeling that soon would be bankrupt, it makes sense to start the procedure for recognition bankrupt. Insolvent person becomes only if he cannot pay his debts, and his condition is not of a temporary nature.

Let’s start with the fact that each application for bankruptcy consists of three main elements: income, assets and debts. Amount and type of income, assets and debts affect the final outcome of your case. Let’s focus on the conversation about this property. It is important to dispel the myth that a debtors who have filed for bankruptcy, will lose all their possessions.

One of the primary purposes of bankruptcy is to give the person the opportunity to begin a new life; deprivation of property contradicts this purpose. Every state in America has taken federal law on the conservation of certain property (exemptions), or created such a law autonomously. Exemptions – it is a property that you save and which cannot be sold to satisfy creditors’ claims.

California adopted a law on a standalone stored property (exemptions) and created two separate schemes which the debtor may use to protect their property. These schemes are codified under the numbers 703 and 704 and refer to the California Code of Civil processes.

Their main difference is whether the debtor has any value (equity) in your main place of residence. According to Article 704, unmarried debtor can protect $ 75,000 of capital, a family man can protect $ 100,000, and people older than 65 years, or people over 55 years with low-income or disabled person of any age can protect $ 175,000 of the home’s value (equity). However, when filed for bankruptcy chooses this scheme, it can only save up to $ 2900 value (equity) of the vehicle.

In contrast, Article 703 provides protection for $ 26,925 on any property protection and $ 5,100 for vehicles. Thus, the debtor without any equity (the value of) the house has the ability to protect more than $ 32,000 property. For most debtors is more than enough to protect all of their property.

Also it should be noted that both articles provide protection of household items, bank accounts, tools of the trade, social security funds and personal injury (social security and personal injury funds), as well as claims for workers compensation (workers compensation claims).

Nevertheless, all filed for bankruptcy should understand that only the net value (net equity) of a particular property can be protected. So if you have a mortgage payment (mortgage), the payment of car or other similar duty applies certain formula to determine the actual amount that can be protected. Senior bankruptcy attorney, well versed in the laws of California, can help you choose the right scheme to protect the maximum amount of property.

If you are considering filing for bankruptcy and you have more assets than is possible to protect, do not panic. A certain amount of unprotected property may be paid to creditors to allow you to keep 100% of the property in accordance with Chapter 13 or 7 without having to give up the property.

Bankruptcy attorneys have won hundreds of cases in the first instance, appeal, cassation and supervisory authorities. Protecting the rights of clients at all stages of the insolvency procedure, have one of the highest rates of bankruptcy cases won – more than 98%.

Free bankruptcy attorneys specialize in providing legal services in bankruptcy and business organizations. For more than 15 years, experts defend the interests of the founders, creditors and other participants in this long and laborious procedure. Successful practices in conjunction with the constant study of the legal framework allow to reach their goals.

To seek legal free bankruptcy attorney advice on bankruptcy can:

  • founders of the company, including foreigners, representatives of municipal authorities;
  • CEOs for which initiated insolvency proceedings;
  • Stakeholders (parties disputed transactions, affiliates, etc.).

Entitled to use the help of specialists and staff dismissed as a result of the recognition of the company insolvent. Legal services are provided under a contract whose terms are negotiated individually. Cost, schedule and service features are determined by the procedural provisions of the client’s interests and circumstances of the case.

Protection of the rights of the principal in the courts are made only by qualified lawyers in arbitration disputes, confirming successful professional practice. Customer is entitled to choose their own bankruptcy attorney.

The Main Stages Of Legal Services In Bankruptcy

Form of legal services and content services is determined by taking into account the production stage. The entire complex legal support can be divided into the following steps:

Assessment of the situation and the formation of position

Free bankruptcy attorneys conduct a comprehensive analysis of all the documents the client makes a request to state agencies, collect information from available sources. Only after receiving information lawyers can give a correct legal assessment. They advise the person to ask for help, offer ways to deal with.

Commencing a suit

If there are sufficient grounds for bankruptcy, the lawyer prepares documents and application for arbitration. At this stage, a special role is played by the ability to form the evidentiary basis. Initiation of insolvency procedure is allowed only if there are strong arguments (corresponding to the size of the debt and the period of delay).

Representation at meetings of creditors

One of the key steps to protect the interests of the principal – participate in general meetings. At this stage, issues such as the reorganization of the debtor, creditors including the registry, prioritization meet the requirements, and more are discussed. Rights violations in deciding here is not uncommon.

Disputing transactions

In cases of bankruptcy is often necessary to go to court with the requirements for recognition of the transactions made by the debtor, invalid. As a result of competent actions of experienced attorneys the overall size of the estate may increase substantially.

The legislator has provided participants with a wide range of office procedures and legal instruments. Creditors control, or other interested parties may insist on inspections, including the involvement of investigation and prosecution.

Bankruptcy attorneys use any facilities provided by law, which allows us to achieve the best results even in ambiguous situations. Efficiency of the specialists is largely dependent on the timeliness of appeal. The highest chances of a favorable outcome of the case are parties who attracted professional lawyer at the initial stage of production.