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Fabrications About Bankruptcy And Its Penalities
The Law Office of Rob R. Nichols
In the tough economy, homeowners always worry about making payments on their house, and the threat of the bank foreclosing on a home constantly looms overhead, especially when people start to lose a bit of their income. Most average Americans have all their money invested in their homes, and without the most valuable asset, it would cause major damage to the prosperity of the family if the bank were to commandeer it. The word “bankruptcy” even has a negative connotation, but some people misinterpret the way the process works and even the severity of the penalties. Folks thinking about filing may want to sort out the facts before they get scared into believing that bankruptcy is some evil method of eliminating debt.
Facts Vs. Fiction
One false idea is that when filing for bankruptcy, both spouses must file in order to clear them of their debt, but really, only the person with the most debt must file. It is often more advantageous for only one individual to file for bankruptcy and alleviate the debt, and the idea that both must file to eliminate the debt is completely false. Folks also are led to believe the process for completing bankruptcy takes a long time, but often, finalizing the paperwork and submitting a claim can be done in as few as six months. The processing duration is the same, no matter if you hire a Norwalk or a bankruptcy attorney in Woodland Hills to help you complete the claim.
If someone follows the set plan set out by the courts and continues to exercise responsibility with his finances, he can easily fix his credit score in under ten years, but a typical misconception is that anyone who files can never straighten out his score. Of course, the mark left by bankruptcy will remain on your credit for up to ten years, but if you do act responsibly by making your payments on time and handling your money well, you can repair your credit quickly.
General Differences Between Chapter 7 and 13
The situation of your finances will determine the sort of bankruptcy you will file under, either Chapter 7 or Chapter 13 for most Americans. For instance, Chapter 7 is better for someone with few assets while Chapter 13 is designed more for a homeowner with a fixed income. No matter if you employ a Downey or a bankruptcy attorney in Thousand Oaks, you will be informed of the same things, and the professional will attempt to give you the best advice when filing for a claim.
Rob R. Nichols is a bankruptcy attorney in Woodland Hills serving the San Fernando Valley. Nichols is a great bankruptcy attorney in Thousand Oaks with fees as low as $895.00.
Article submitted Wednesday, January 25, 2012 & read 2 times.
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