Freedom Through Bankruptcy

Cherylyn Petersen
Jul 27, 2017 · 4 min read

It can come on quite suddenly, the phone calls requesting bill payment, the letters in the mail that you dread to open. Quite by accident, you may find yourself drowning in a mountain of debt. This is often the case when a medical emergency forces you to the hospital or when your student loans are beyond your means. Perhaps you purchased a house and then lost your job, now you’re struggling to hold the pieces together. Many times, people look at bankruptcy as a frivolous action to avoid the ramifications of a wild spending spree. In actuality, it is usually well meaning people, with honorable intentions, who suddenly find themselves upside down with their spending and income.

If this is you, take a breath, there’s hope, there’s help, and there is a way out. Bankruptcy is not a failure, it’s a restructuring in order to secure your future. It can be the smartest and bravest thing that you can do, because it enables you to emerge from a mountain of creditors and bills to rebuild your financial stability. It’s not a life sentence that will haunt you forever. With the many different forms of bankruptcy and filing available to you, it’s possible for you to find a solution.

There are a few things to know before you file. First, while this legal proceeding can be done without the use of an attorney, it is very rare that this type of action will be in your favor. In California fewer than 1 percent of cases are accepted when the applicant is filing without the assistance of an attorney. To start the process of discovering if you even qualify for bankruptcy, it is necessary to find an attorney to assist you.

Bankruptcy is not a black mark on your financial statement, but it will drop your credit score significantly, making it difficult to purchase a house or vehicle in the future. Setting yourself up prior to filing can help protect yourself and your family. This is where a quality lawyer can assist you while counseling you on how to align your assets and keep you from anything that could be considered fraudulent.

Mistakes happen when consumers know that they are in financial distress and they then try to take action to protect their resources. This can be considered fraud and have drastic ramifications. Taking the time to meet with an attorney who specializes in bankruptcy can help you to avoid this mistake. Understanding the bankruptcy process and which type can be best for you is not always clear cut. It’s important to have a professional review all of your debts, equity, and monthly income in order to educate you on the best course of action.

There are different benefits in regards to the two types of bankruptcy most households file. In chapter 7 bankruptcy, the client, or business, creates a list of all assets, income, and household expenses, then certain secured resources are sold in order to satisfy creditors and fulfill the notes. There is a medium income requirement to qualify for this type of assistance and it is important to meet with a trusted expert to see if this would be of help for your particular situation.

In chapter 13 bankruptcy your property is usually protected, however you must create a repayment plan in order to satisfy your debts over the next three to five years. This can be very difficult for many families as their monthly income is typically already too low to cover their bills. Having someone who is focused on protecting your financial position and encouraging your success can be greatly constructive to your future.

While the need to file bankruptcy can be scary and uncertain, having a trained counselor guide you through the process can keep you from the many pitfalls that can destroy your financial goals. Take the time to browse your local area and find the best bankruptcy attorney to assist you through this difficult season. You were made to live free. It’s time for you to succeed and finding the right person to take you through this process will ensure that you emerge victorious.

Find the best bankruptcy attorney in Redding, CA

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