File Bankruptcy

There are advantages and disadvantages to both debt settlement and bankruptcy depending on each individuals set of circumstances. A bankruptcy lawyer that exclusively works on debt relief for families is in all probability the best person to look up if you are struggling financially or trying to stop foreclosure of your home. A bankruptcy lawyer can perform a “means test” and determine if you are eligible for chapter 7 or chapter 13 depending on your income, dependants and mortgage payments. If you are eligible for a chapter 7 you might be in a better position filing bankruptcy rather than debt settlement. Bankruptcy chapter 7 might allow you to completely eliminate all your unsecured debt and retain your cars and your house, while chapter 13 would be a repayment option of typically pennies on the dollar. It’s important to meet with a bankruptcy attorney that has expertise with both chapter 13 and chapter 7, as well as debt settlement. Most bankruptcy lawyers only file bankruptcy and don’t particularize in debt settlement so they are more apt to navigate you towards bankruptcy chapter 7 or chapter 13. Filing bankruptcy rather than debt settlement for somebody with a small amount of credit card debt might or might not be a wise choice based on several factors. Meeting with a bankruptcy attorney that has the power to file bankruptcy along with debt settlement will offer you your best options and help you decide to either file bankruptcy or opt for a debt settlement program. Most debt settlement companies tell you what you want to hear and don’t decently disclose the under belly of debt settlement or the benefits of chapter 7 bankruptcy. When you file bankruptcy chapter 7 you can wipe clean all your debt completely and fend off judgments and liens. If you choose to engage in a debt settlement program rather than file bankruptcy you should be sure to utilize a bankruptcy attorney for the best outcome. A bankruptcy specialty firm can usually protect you from your creditors, they are less likely to sue you if they know you will file bankruptcy and they will get zilch. In a debt settlement program you will usually pay 50% of what you are indebted to your creditors rather than three percent to ten percent in a chapter 13. If you pass the means test, you can file chapter 7 bankruptcy and typically pay nothing other than your fee for filing bankruptcy and your bankruptcy attorney fee.

The problem with debt settlement companies is that they usually take their fee for the debt settlement up front and offer no guarantees. A bankruptcy attorney that provide debt settlement are a much more stable route and is held to a more rigid criterion than a debt settlement company. Also, a bankruptcy attorney can offer you legal representation and creditor defense from harrassment by your creditors. While filing bankruptcy may be the last ditch effort for most, the truth is that bankruptcy is easier than one may think. If you would like more bankruptcy information or would like to see if debt settlement is a better plan of action, the bankruptcy attorneys at Zhou & Chini offer free consultations. To find a bankruptcy lawyer in California that also provides debt settlement options visit: www.BankruptcyAttorneyinCalifornia.com.

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