State Bankruptcy Lawyer: Keeping Debtors Off Your Properties

Hitting financial rock bottom is not really a rare thing these days. In fact, thousands of people file for bankruptcy every year. If you are one of those people who have just hit rock bottom and you have no other means of getting out of the situation, file for bankruptcy. Chapter 7 and Chapter 13 of the Bankruptcy law can help you become debt free again. These two provisions are different so you need to know which one is best for you before you attempt to file for bankruptcy.

Each state has its own set of laws regarding bankruptcy that is why it is very important to get a bankruptcy lawyer who knows the laws of your state. If you live in Anaheim, it is imperative that you talk to an Anaheim bankruptcy lawyer who is knowledgeable about California laws before you attempt to file for bankruptcy. Always remember that filing for bankruptcy is not an end in itself but rather just a way for you to get on to your feet. As a means to become debt free, you need to use the applicable laws on bankruptcy wisely.

Properties Exempted under the Law:

California laws allow a number of exemptions that will help you protect your properties from creditors. In Anaheim, 75% of your paid earnings can be exempt from garnishment by your creditors. For vehicles, the specified amount for exemption is $2,300 of your equity. Personal properties such as provisions, household items, clothing and appliances may be 100% exempt provided that they fall under the category of necessary items. On the other hand, people who are engaged in business are allowed to claim for exemptions the properties or jewelry. However, the exemptions of these properties are not absolute. A specific amount of $6,075 for each item is provided under the law and anything in excess of that amount may be subject to accessed by the creditors.

Since there are many things that you need to know and understand about bankruptcy under California Law, it is important that you hire the services of an Anaheim bankruptcy attorney.

Chapter 7

Any person can file chapter 7 Bankruptcy, otherwise known as liquidation. This means that whether or not you own a business, you can file under this provision. Under this provision of the law, you will be required to sell your properties, which are not exempt under the law to pay off your debts. This provision also outlines the things that can be exempt from liquidation.

Chapter 13

Chapter 13 Bankruptcy, otherwise known as reorganization, allows you to make a repayment plan to pay off your creditors. There are some criteria that you must meet to qualify under this provision. First, you need to obtain a reliable monthly income, you secured debts must not exceed $922,975 and your unsecured debts must not exceed $307,675.

Regardless of the state, you need to speak with a credible attorney to figure out how to remove yourself from debt and start with a fresh slate. Always remember that filing under the right provisions of the law in very important if you want to be debt free in the future.