Drowning in Debt? Contact an Irvine Bankruptcy Lawyer for Help

Filing for bankruptcy can be a necessary but humiliating and embarrassing event for most people. Because of these raw emotions, they may not be able to advocate for themselves as forcibly as they should. As a result they could lose their home, car or other assets that should have been protected. Hiring an Irvine Bankruptcy Lawyer will put them in the strongest position to save as many of their assets as possible, while paying off their creditors. Individuals have to remember that the bankruptcy process is really established to ensure that as many creditors as possible receive as much money as possible. The court appointed trustee is not looking out for the interest of the person declaring bankruptcy.

An attorney can help a person determine if they should use Chapter 7 or 13 to file for bankruptcy. While federal law mostly determines bankruptcy rules in each state, many states have also written bankruptcy statutes. These further define exempt property, that will not be sold to provide money to creditors. As home foreclosures have skyrocketed in recent years, understanding how to protect homes during bankruptcy proceedings has increased. If a person is current on their mortgage and able to continue to make the monthly payments, a properly filed bankruptcy may allow the homeowner to keep their home. In fact it may make it easier, because the bankruptcy erases other debts that the homeowner has had to pay. If the debtor still has a job, the court trustee will have to consider the mortgage payment, when calculating how much of their salary they can use and what proportion must be used to pay off creditors.

If a Irvine Bankruptcy Lawyer determines that Chapter 7 is the best course of action. All of a debtor’s non-exempt property will be sold and the proceeds will be divided by the bankruptcy trustee among the creditors. This process usually takes four to six months. Under Chapter 13, the debtor has sufficient income to continue making payments in addition to selling non-exempt property. The bankruptcy attorney reviews the amount of money it takes for the debtor to live in a very minimal manner. The remainder of the money is distributed to creditors each month. The creditors usually have agreed to accept a smaller amount to pay off the debt. This process can last in most states up to five years.

       

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