LaVelle Law Offices, Bankruptcy Attorney in Stockton

You do not have to battle an apparently insurmountable debt alone. Our Stockton bankruptcy attorney can help you figure out how to get out of debt and start over financially.

How Can a Stockton Bankruptcy Attorney Help Me Find Financial Debt Relief?

The Benefits of Hiring a Stockton Bankruptcy Lawyer

If you are thinking about filing for bankruptcy and live in the Stockton area, hiring the best Stockton bankruptcy attorney to help you understand what type of bankruptcy is best for you is critical. There are several ways you can handle your debt problems and get back on your feet.

You can get out of debt through bankruptcy in two ways: by getting rid of your debts or by making a plan to pay them back.

When you file for bankruptcy in Stockton, your creditors will not be able to harass you, and you can stop making payments on most of your debts. An automatic stay is imposed when you file for bankruptcy. With this stay, your creditors can’t take any legal action against you, like taking your car back, foreclosing on your house, or taking money out of your paycheck.

You do not have to battle an apparently insurmountable debt alone. Our Stockton bankruptcy attorney can help you figure out how to get out of debt and start over financially.

Here are the benefits of having a Stockton Bankruptcy Lawyer

1. Understanding Bankruptcy Options
2. Better Legal Representation
3. Save You Money
4. Better Negotiations
5. Save Your Home From Foreclosure

Types of Bankruptcy Options

Chapter 7 and Chapter 13 bankruptcy are the two primary types of bankruptcy that you can petition for. Each type of bankruptcy is different and understanding which is right for you is important before filing. Below you will find more information on each type of bankruptcy.

Chapter 7 Bankruptcy

Those who are unable to pay their debts may file for Chapter 7 bankruptcy, also known as “liquidation” bankruptcy. Any non-exempt assets that Chapter 7 filers may have must be sold, and the earnings must be used to pay creditors.

A person who files for this kind of bankruptcy is able to discharge all of their unsecured obligations, including credit card debt and medical expenses. As a result, you are no longer required by law to pay them back.

A trustee is chosen by the court to manage the case in a Chapter 7 bankruptcy. The trustee is in charge of selling the debtor’s property and giving the money to the creditors in order of priority, with secured creditors getting paid before unsecured creditors. The debtor gets released from their obligations after making the last payment to the creditors.

Chapter 7 bankruptcy can help you get out of debt considerably more quickly than Chapter 13 bankruptcy because, once you’ve sold your assets and repaid your creditors with the cash, you are no longer accountable for any residual debt.

In addition, you may be able to keep more of your assets because only nonexempt assets must be liquidated in Chapter 7 bankruptcy.

Chapter 13 bankruptcy

Chapter 13 bankruptcy, sometimes known as “reorganization” bankruptcy, exempts the debtor from the need to sell off any of their possessions. Instead, the debtor will make regular payments to the trustee, who will then give those payments to the creditors.

The length of the plan, which is normally three to five years, depends on the debtor’s capacity to pay. Any outstanding debt will be discharged once you have paid off all your obligations.

People often use a chapter 13 proceeding to keep their house from being taken away by the bank. As soon as the chapter 13 petition is filed, the automatic stay freezes the foreclosure process. The house can be lost if the foreclosure sale takes place before the petition is submitted. If you don’t keep up with the payments during the plan, you risk losing the house as well.

Debtors who file for Chapter 13 bankruptcy are able to choose a repayment schedule that typically lasts between three and five years. You must have a steady salary to be eligible. Depending on the types of debt and the debtor’s income, the debtor in a Chapter 13 bankruptcy will work with their attorney to develop a repayment plan for some or all of their creditors. The plan will last for three years, unless the court extends it because the debtor’s monthly income is less than the state median. The law prohibits creditors from beginning or continuing collection activities during this time.

You are not required to navigate the bankruptcy filing procedure alone or represent yourself in court. When your case is presented in court, our staff can assist you in navigating the various processes and considerations involved.

Conclusion: The Benefits of Hiring a Stockton Bankruptcy Lawyer

A Stockton bankruptcy attorney can assist you in complying with state and federal regulations. Our lawyer might also help you look at all of your options and figure out what the pros and cons of filing for bankruptcy in your state are.