Bankruptcy Attorney

1
What Should I Know About Bankruptcy And
Investment Properties?
https//www.losangeles-bankruptcyattorney.com
Financial constraints are typical among most
American citizens, owing to a series of events
that may or may not be within your
control. Dealing with the debts and creditors
always on your neck may be stressful, and could
wear you out very quickly. One of the best
remedies for anyone who faces the challenge of
insufficient funds is filing for bankruptcy.
Declaring bankruptcy on time will save you a lot
of financial strain, as it opens up additional
ways to pay off debts and clean your slate
against past creditors. Upon deciding to file
for bankruptcy, you need to consider several
factors that affect your livelihood directly.
Moreover, you need to make a careful
determination of the reasons for registering for
the declaration, based on whether your bankruptcy
affects your personal or corporate monetary
state. With a declaration of bankruptcy, your
investment properties also face several risks.
You often have to prepare to sell or release
ownership to allow the appointed trustees to
trade the property in return for debt
settlement. During the consolidation of funds and
property to put up for sale, you need the
services of an experienced bankruptcy attorney,
who will help in the negotiation process with
your creditors and the judge. At Los Angeles
Bankruptcy Attorney, we commit ourselves to
serve all our clients in Los Angeles,
accordingly, to help them undergo a smooth
transition process after filing for bankruptcy.
Additionally, we provide comprehensive legal
advice to enable you to make smart financial
decisions to avoid losing valuable property when
you can retain it.
2
Filing for Bankruptcy
www.losangeles-bankruptcyattorney.com When you
become overwhelmed by debt repayment, you will
seek a way out to organize yourself and make
repayments over a designated period. Filing for
bankruptcy eases the pressure on making
repayments to creditors by removing you from a
position of personal responsibility to pay your
debts. After deciding to declare bankruptcy, you
have to follow a stipulated court process that
lets you file several documents that provide
enough evidence and stated reasons for declaring
the state of bankruptcy. You will need a
bankruptcy lawyer's services to facilitate the
filing of documents in court, as it can be
a hectic process that requires particular and
highly detailed submissions and supporting
documents. Moreover, there is a filing fee for
anyone who needs to file for bankruptcy, set to
ward off applicants who would like to take
advantage of the protection they receive from
court after a declaration of bankruptcy.
Therefore, the fee may be a bit costly, depending
on the type of bankruptcy you file. A
triumphant declaration of bankruptcy will prevent
creditors or any other agents in recovery firms
from contacting you. Your financial matters now
fall in the hands of an appointed unbiased
trustee. As a result, any creditor seeking
repayments from you can no longer address you
directly and has to get in touch with the
appointed trustee to conduct any transactions.
While most people view declaring bankruptcy as
the most comfortable way out, it is essential to
remember that you will still face a lot of
scrutiny from the court when you decide to
undertake any future ventures. Thus, you will
expose yourself to constant fiscal analysis that
functions to ensure that your claims of
bankruptcy were valid, and not just a shield from
creditors. Moreover, you need to understand that
bankruptcy will ruin your credit score
significantly and may, therefore prevent you
from making individual financial decisions in the
future. For example, if you manage to reinstate
your past financial state after repaying all
debts, you may decide to apply for a loan to
facilitate new business ventures. The standard
procedures followed by any bank or credit
corporation requires the company to run a
background check on your credit history, to
determine whether your score is satisfactory for
the issuance of a loan. Consequently, the bad
credit score obtained from filing for bankruptcy
will limit your future ventures significantly.
Hence, it is essential to weigh your options
objectively before deciding to settle for the
bankruptcy declaration.
Types of Bankruptcy Several options are available
if you are looking to declare yourself bankrupt.
The types of bankruptcy depending on the amount
of money you make per month and whether your
financial incapacitation affects your personal
property. Therefore, you can also file for
bankruptcy in case your company is on the edge
of a financial crisis, to prevent the adverse
effects of dealing with
3
Chapter 13 Bankruptcy
creditors and recovery agents directly.
Generally, the various types of bankruptcy either
offer liquidation or reorganization remedies. If
you choose the liquidation option, you will have
to give a third party trustee the power to
convert your assets and liquidate them in
exchange for the settlement of outstanding
debts. The process of liquidation involves
converting any available assets into cash, to
enable transfer to the creditors you owe money.
On the other hand, the reorganization strategy
works to provide a more lenient process for debt
repayment. You will have to appear before a
judge with a qualified fiscal plan that lays out
how you intend to repay all the money you owe.
You need a bankruptcy lawyer's services to create
a well-laid out long- term strategy that should
convince the judge of your ability to pay off
your debts consistently over the stipulated
time. You may decide to opt for Chapter 11
bankruptcy to remedy company insolvency as well,
which introduces another mode of debt repayment
under stringent court scrutiny and monitoring of
court transactions. While you may go for
different options to suit your needs, the main
types of bankruptcy filed are
Applying for chapter 13 bankruptcy provides a
reorganization strategy, to enable you to
consolidate your funds and plan for making
repayments in an organized way. Usually, a debtor
who has a steady or reliable source of income is
the best candidate for this type of bankruptcy,
because he/she can keep up with payments. Thus,
choosing to apply for chapter 13 bankruptcy
requires you to have adequate income sources that
provide consistent returns. Additionally, anyone
who earns income above the set limits in other
types of bankruptcy can also choose to file for
chapter 13 bankruptcy to cater for the larger
income bracket. On top of covering the debtor,
Chapter 13 bankruptcy can include any co-signer
who provides surety for the loans. Therefore, if
you had someone else cosign for your credit, you
can exclude him/her from carrying any
responsibility for the repayment of debts to your
creditors. The move is a courtesy call, to
prevent innocent third parties from carrying the
load of your debts. Requirements for Filing
for Chapter 13 Bankruptcy You need to fulfill
several requirements to become eligible for this
type of bankruptcy. The conditions to be met
work to ensure that you are within the monetary
bracket laid out in the United States Bankruptcy
Code. Additionally, the prerequisites ensure that
you have disclosed all the necessary information
required to run background checks and track your
past and present expenditures. Therefore, you
must provide a comprehensive list of all the
creditors you owe money and the amount owed to
each creditor. You should also disclose all
property in your name, to ensure that your
assets are taken in full consideration. Also,
your debt amount must fall within the bracket of
394,725 and below for unsecured debts. The term
unsecured debts cover
4
all property or assets that are not covered by
collateral, in case of a failure to repay the
debt on time. For example, if you were
discharged from the hospital without completing
the full payment, you will have an unsettled
debt with the hospital you owe money
to. Conversely, your limit for any settled debts
you have should fall within the range of
1,184,200. A settled debt usually has collateral
attached to the item or property bought, to avoid
any risk of non-payment. For example, if you
take out a loan from the bank, you may sign your
vehicle as collateral, meaning that the bank can
claim your car in case of a failure to repay the
loan promptly. Moreover, you need to submit
information about your sources of income and how
much you earn per month. Such information is
useful to the judge when determining whether you
are capable of carrying forward with a chapter 13
bankruptcy agreement with your creditors, which
involves making gradual repayments without
default. Moreover, the judge can apply the
information to the figure you provide as your
monthly expenditure, to ensure that the balance
after spending your income on upkeep is
sufficient to cover the creditor's demands. You
may also have to complete a credit counseling
program, especially if your records indicate a
recurring trend of bad credit scores. Such a
finding may suggest that you need extra guidance
in fiscal matters, to ensure that you undergo a
full reform. Effects of Chapter 13
Bankruptcy on Your Investment Properties As a
reorganization strategy, filing for chapter 13
bankruptcy avails you enough time to present a
well laid out plan for all your ideas to make
payments to your creditors. Therefore, your
property and especially your primary residence
is exempted from foreclosure, meaning that you
can retain your home throughout the entire
repayment process. As such, chapter 13,
bankruptcy is beneficial to couples or
individuals who value their family homes. Besides
protecting your home, chapter 13 bankruptcy also
allows you to retain any property with a positive
record as a source of income to settle
creditors' claims. Therefore, if you own a
premise that you rent out, the judge may allow
you to retain it and order for a transfer of
monthly income to creditors. As a result, you
also maintain a certain level of control over
your property instead of leaving full powers to a
trustee, especially where you can manage and
settle debts on time. Essentially, all you need
to do to retain your investment property is to
persuade the judge that you intend to act in good
faith. Your bankruptcy lawyer will help you do
this by presenting the clear payment plan you
come up with. As a result, you need to consider
even minor details as you prepare the report to
avoid intense scrutiny.