Bankruptcy is a legal procedure adopted by individuals and businesses whose debts have become overwhelming, and who are not in a position to repay them with their regular sources of income and under current circumstances. It offers them a fresh start to their financial life, and relief from creditors’ harassment. The two most common types of bankruptcies are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Under Chapter 7 bankruptcy, the debtor is allowed to dispose of their unsecured debts, such as credit card balance and medical bills, and but has to liquidate their property in order to repay some or all of their unsecured debts, such as second homes, or investments like stocks and bonds.
Individuals who cannot qualify for Chapter 7 bankruptcy can apply for Chapter 13 bankruptcy San Antonio in Texas. Also known as a wage earner’s plan, Chapter 13 bankruptcy allows individuals as well as businesses with a consistent income to create workable debt repayment plans. The process to file for Chapter 13 bankruptcy San Antonio begins with a consultation with a specialist bankruptcy attorney, such as the ones available with Recovery Law Group, who will get to know your financial situation and debts, and based on that, suggest you the best course of action. The US Bankruptcy Code governs all types of bankruptcy filings. All cases for bankruptcies, including Chapter 13 bankruptcy San Antonio, are filed and heard and special federal courts. While local procedural differences may exist, as may be told to you when you hire a bankruptcy attorney San Diego in California, it’s federal, and not state or local law that directs what happens in bankruptcy.
CARES Act makes bankruptcy more available
While filing for Chapter 13 bankruptcy San Antonio, you are allowed to reorganize your finances under the supervision and approval of the courts. Individuals and married couples, even self-employed, or those operating an unincorporated business, can file for Chapter 13 bankruptcy San Antonio. In most circumstances, as will be told to you when you hire bankruptcy attorney San Diego, the repayment plan must provide for a substantial payback to creditors – at least equal to what they would receive under other forms of bankruptcy. If needed, it must use 100% of the debtor’s disposable income for repayment. The CARES Act has incorporated some changes to bankruptcy laws to make the process more available to businesses and individuals in the wake of the COVID-19 pandemic.
Don’t decide on bankruptcy under the influence of others
Always ensure that filing for Chapter 13 bankruptcy San Antonio should be your decision, not of someone else. First things first, never get influenced into making any of the bankruptcy decisions. However, when it comes to navigating the bankruptcy landscape, you will be provided a number of solutions when you hire a bankruptcy attorney San Diego – it's just that you need to explore them. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy are established by the US Federal Government for struggling US citizens who can find relief from their overwhelming debts.
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