It’s a sobering moment to realize you owe a large amount of debts. When this happens, it’s best to check all your options so you can plan how to recover from your financial dilemma. One of them is bankruptcy, which can wipe out all your debts and let you start anew. This, however, is a complex solution you’ll need to consult with a bankruptcy attorney.
Sorting Out Your Debts
it’s a common misconception to think that bankruptcy can free you from all debts. According to Californian laws, bankruptcy can only eliminate financial obligations as long as they’re ‘unsecured.’ These are loans and credits without collateral requirement. Most credit card bills, including medical and utility costs, fall into this category.
For secured debts, repossession can sometimes be unavoidable. One option you should consider is arranging for a payment scheme. A bankruptcy lawyer can provide advice about this concern, so you can maintain ownership of your house or car.
Starting the Bankruptcy Process
Once you finalize the initial process, it’s time to undergo the means test to officially determine your eligibility for a Chapter 7 or Chapter 13 bankruptcy. Ask for advice from your lawyer on how to fill out the necessary documents that indicate your monthly household income and other essential details. They will help you decide about the right course to take to solve your debt problems.