Affordable bankruptcy in California to help you eliminate debts and get a fresh financial start

The mere idea of filing for bankruptcy is fraught with dread by most people. It doesn’t mean that you are a poor or bad person, it simply implies that you have more debt than what you can currently manage. When you have exhausted other options, affordable bankruptcy in California can help in providing you with a fresh financial start at a low cost, and in the shortest time. Experienced lawyers providing affordable bankruptcy in California, such as the ones available with Recovery Law Group, will not only help erase your debts and stop creditors’ harassment but also ensure that you do not end up losing all your assets, most of them being unseizable.   

Most of the affordable bankruptcies California are filed either under Chapter 7 or Chapter 13 of the US Bankruptcy Code. Chapter 7 bankruptcy is designed to low-income people get rid of their overwhelming debt. To qualify for Chapter 7 bankruptcy, you need to pass a Means Test. The test determines whether you have the means to repay a portion of your debts. To pass the Means Test, your median income of the size of your household should be less than the median income of the size of your household in the state of California.   

When you file for affordable bankruptcy California under Chapter 7, some of your debts will be discharged or eliminated. These include credit card bills, medical bills, unsecured personal loans, obligations under leases and contracts, and past due utility bills. However, some debts such as child support and alimony, fines, penalties, and restitutions, and secured debts cannot be discharged under Chapter 7 bankruptcy. However, federal laws allow each state to create their own exemption lists. For example, exemptions under affordable bankruptcy California may allow you to keep a small home with a kitchen and washroom, a small car, tools of trade, household items, and even some proceeds from the sale of your property. However, the process is complex, it is wise to consult an experienced lawyer to fully understand what you will stand to lose and what you will be able to keep under Chapter 7 bankruptcy.   

However, if you fail to pass the Means Test, you may be suggested to file for affordable bankruptcy California under Chapter 13 by Recovery Law Group’s specialist bankruptcy attorneys. Under this bankruptcy, your lawyer will submit a payment reorganization plan to keep up with payments for things bought on credit, including mortgage. To qualify for Chapter 13 bankruptcy, you must have a steady income, be current on your tax filings, should not have unsecured debt of more than $419,275 and secured debt of more than $1,257,850.    

You will have a meeting with creditors wherein a plan will be worked out that will allow you to repay your outstanding debt over a period of three to five years. The plan will be approved by the court, and you will be required to pay all monthly payments on time. Your loan co-signers will be protected from the collection efforts by the creditors. It is also possible to file for Chapter 13 bankruptcy after the completion of Chapter 7, allowing you to seek a reduction in whatever debts remain from a Chapter 7 discharge.    

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