Bankruptcy Laws
Bankruptcy laws have been in place in this country from the beginning; in fact, it is specifically provided for by the United States Constitution. The guiding purpose of filing bankruptcy is to give those who are deeply in debt the opportunity to get a fresh financial start.
Without some relief like this, families who fall behind in payments due to illness, or layoffs, or small businesses that suffer reverses would have no remedy. Some limited relief is essential so that those who fall into serious financial difficulties are not left penniless.
Central Coast Bankruptcy law firm in Salinas focuses on Chapter 7 and Chapter 13 bankruptcy help.
Chapter 7 Bankruptcy
This is the program most people think of when they think of bankruptcy. A Chapter 7 bankruptcy is sometimes also referred to as a "full", or "straight" bankruptcy. For those who are eligible, you can discharge many kinds of bills in a Chapter 7: credit cards, medical bills, personal loans, etc.
A Chapter 7 usually offers no help with the following kinds of bills: car loans or leases, most kinds of tax debts, child support obligations, or home loan problems.
Chapter 13 Bankruptcy
Chapter 13 of the Bankruptcy Code allows individuals or married couples to reorganize their debt and make a single monthly payment on all their bills. Both Chapter 7 and Chapter 13 bankruptcies are personal bankruptcies rather than business bankruptcies.
However, Chapter 13 bankruptcy is different from Chapter 7 in that you do not simply walk away from your debts which have become unmanageable, but instead propose a "best efforts" plan to pay off your bills over a three- to five-year period.
Central Coast Bankruptcy in Salinas can offer you the right bankruptcy services to match your needs. Contact us or call 1-831-783-0260 to learn how we can help.