Many people find themselves in some type of debt. Some people are more fortunate than others, as they can eventually pay off their debt after a nice pay check. Others will have to establish some type of repayment plan, if they are not too far in debt. Then, there are the extremely unfortunate people, who will seemingly never be able to escape debt, not matter how many vacations or meals out they skip to make debt payments. These people will likely need to file some form of bankruptcy. However, before anyone files for bankruptcy they need to speak with an attorney, as the rules are extremely complex, visit Bankruptcy Attorneys Los Angeles for your bankruptcy legal needs.
When people contact a bankruptcy attorney Los Angeles, they will be asked to setup an initial meeting. During the first meeting, the lawyer will speak with the client about their debt situation. Everyone will have a different situation, so the attorney will need to carefully review all of the financial documents. The attorney will also inform the client about how the bankruptcy procedure works and which chapter they will likely be filing.
People will discover that there are typically two types of bankruptcy that apply to individuals, and those are known as Chapter 7 and Chapter 13. When people file for Chapter 7, they will likely lose all of their possessions, but they will have all of their debt erased. However, it is hard to file a Chapter 7, as this essentially means that all of the lenders will not receive any repayment for the loans. The government carefully evaluates Chapter 7 applications, as many people have abused this section. Chapter 13, on the other hand, will allow people to keep their prized possessions. However, these people will be required to setup a payment plan to repay their debts. Typically, they will end up paying a lesser amount of their debts. People will discover that bankruptcy lawyers Glendale can make the filing process a lot easier and they will be able to get their financial situation back on track in the near future.