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A Riverside bankruptcy lawyer can help you get a fresh start on life by clearing the decks of your debts. If you are buried in debts that you simply cannot pay, there are options. In today’s society, skipping out on your debts is not a good option. Instead, you need to deal with them, and there is a legal way to do so: bankruptcy. There are several types of bankruptcy filings to choose from, and as a lawyer, we can help select the right one for you. We encourage you to schedule a consultation to discuss your situation. In the meantime, here are a few frequently asked questions and our answers to them.
Can a bankruptcy stop my foreclosure?
This is actually a fairly common reason for filing for bankruptcy. If you are behind on your mortgage payments and are worried that your home may be foreclosed on, you can file bankruptcy and all collection actions will be temporarily stayed. During the process, negotiations will take place and you may be able to stay in your home as long as you make on-time payments going forward. This is general information though, so you should definitely schedule a consultation right away if your home mortgage is reaching that point.
Will I lose my car?
As a Riverside bankruptcy lawyer, we will work with you to preserve your assets as much as possible. There are exemptions that allow for you to keep your vehicle. However, if you own several cars, there is a good chance that you will be forced to sell some of them in order to pay creditors. You should also know that if you have a loan on your vehicle, you will have to start making payments or you could lose it. Filing for bankruptcy cannot wipe out debt that is secured by your property (home, car, etc.) because the lender still has the right to foreclose if you do not start making payments. The goal then is to get them to waive any late payments to date or add them to the end of the loan so you can get caught up.
Are all my debts going to be wiped out?
That depends on what your debts are. As mentioned, any secured debts will remain secured and you will need to pick back up on your payments to avoid future foreclosure. If you want to wipe out your debts, we will probably recommend that you file a chapter 7 liquidation bankruptcy. As a Riverside bankruptcy lawyer, we use this type of bankruptcy to wipe out unsecured debts like credit cards and personal loans. However, not everyone qualifies for this type of filing, nor is it the best for every situation. This is why you may do better by filing to reorganize your debt. In this way, you can make one monthly payment that is much less than you are or should be paying now. Creditors have to accept the payment arrangements approved by the court, and that typically means they have to write off a portion of the debt.
To discuss your particular financial situation, call and schedule a consultation with a Riverside bankruptcy lawyer today.