Quick Bankruptcy Overview in Anderson, California
Laws surrounding bankruptcy are extensive enough to fill books. It is better to leave the complexities to attorneys. However, you should learn the basics of each chapter classification to help you determine if bankruptcy may be right for you.
Understanding the Different Bankruptcy Chapters
Chapters vary in their requirements. For example, you may be required to repay debts with one and may not have to repay some debts if you choose another type. Here is a summary of the main plans that we handle:
- Chapter 7 bankruptcy wipes out some debts and may require the debtor to surrender or pay for assets.
- Chapter 9 bankruptcy provides municipalities such as schools and cities with protection from creditors and reorganizes debt.
- Chapter 12 bankruptcy allows fishermen and farmers to reorganize their debts to make affordable seasonal payments.
- Chapter 13 bankruptcy allows debtors to make affordable payments for debts over the span of several years while retaining assets.
Many people think that Chapter 7 bankruptcy erases debts and gives them a clean slate. Student loans, liens and several other debts are not wiped out. It is important to know the limitations of any type of bankruptcy before choosing to file.
Is Bankruptcy Right for Me?
These are some of the common reasons why people ask us if they should file for bankruptcy:
- Multiple credit card debts with high interest
- Several enormous medical bills
- Multiple types of credit accounts that are unmanageable
- Loans for a home and more than one vehicle that are not affordable
Medical bills are wiped out with bankruptcy. However, most hospitals accept even a small payment each month without sending accounts to collections. Paying small payments is better than ruining your credit with bankruptcy. For credit cards, you can often transfer balances of high-interest cards to a zero-interest card to make lower payments.
Remember that assets on loan are usually surrendered to the creditor when you file for bankruptcy. We can help you find the most optimal solution whether it is bankruptcy or debt management. Call now for a free consultation.