Bankruptcy Advocates San Mateo: The Basics Of Filing

San Mateo, California is one of many cities where residents are having problems paying their bills each month. Some people have a hard time paying their bills for different reasons. Many people get laid off their jobs and do not have a savings account. Not being good at managing money does not help as well. Bankruptcy lawyers San Mateo law services are essential for going through the court system.Being in debt can be stressful and overwhelming. Bankruptcy is an option and a way out of debt. It involves paying off debts using a repayment plan or liquidating assets. The three different chapters are Chapter 11, Chapter 7 and Chapter 13.Chapter 7 involves selling assets and using the money to pay creditors. This method may result in losing valuables, such as antiques, cars or real estate property. Another alternative is attending debt counseling or settling out of court. Creditors want to settle the account and willing to negotiate payments.Chapter 11 status is used by corporations with financial problems. It works by restructuring debt and giving more time to pay creditors. This filing method can take time and can be expensive.Chapter 13 help debtors with creating a repayment plan. The plan is used to pay back outstanding debts. This chapter is also called wage earner's plan. Judge requires the debt to be paid off within five years and must have regular income.The assistance of a lawyer can help with filing paperwork in the court system. He or she can help with understanding laws and negotiating with creditors. You will need a variety of documents to complete the process. It helps to write down valuable assets and collect important documents, such as monthly bills and current credit report. This information is essential for filing Chapter 7, Chapter 11 or Chapter 13.Choosing the right chapter to file involves evaluating assets, income and debts. There are certain documents to file and can take time to complete the process. Chapter 7 is based on incomes and must make under $40, 000 a year. People who make over $40,000 a year does not qualify for this plan. Another option is filing Chapter 13, which involves restructuring and reducing debts.It is common for creditors to ask for a 341 meeting. A 341 meeting allows for the debtors and creditors to have a meeting and discuss what is owed. Debtors can attend the meeting with an attorney or alone.The creditors may require meeting in person to settle debts and ask for debtors to attend a 341 meeting of creditors. The 341 meeting of creditors is a when the creditors meet with the debtors about the facts of the case. Debtors can attend the meeting alone or with legal representation.There are certain debts that cannot be removed, such as child support payments and student loans. People who file for Chapter 7 will have the debts removed from their credit history. Others who file Chapter 13 have to file a repayment plan. Getting rid of debt helps people to start over and to become financial established. Bankruptcy lawyers San Mateo can help with filing and explaining the laws.