Overwhelming debt doesn't just happen overnight. Most people in the U.S. only have enough money to get by from week to week. One accident or illness is all it takes to put you behind on your bills. If you fall behind, there's a chance you'll never catch up. This doesn't mean you're a bad person; it just means you need help. A bankruptcy is one way to get that help. If you're like most people, you don't know what to do or how to do it.
The court system is used to file for bankruptcy. You could do this on your own, but it's not really a good idea. If you want to do this yourself, you need to learn how to do it. There are do-it-yourself kits and companies that do this on the Internet. To try this, you'll need a lot of patience and the hope that you won't mess up.
When getting ready to file for bankruptcy, the first thing you have to decide is what kind you want to file. In Chapter 7 bankruptcy, you sell your belongings and give the money to your creditors. Chapter 13 is when you work with your creditors to get them to stop charging you interest and agree to make smaller payments over time. You don't want to make this choice quickly. You can get information from the Internet, the library, or by talking to other people.
If you don't think you can do it yourself, the safest thing to do is to talk to a lawyer who handles bankruptcy cases. They will know what forms need to be filled out and how to deal with these problems in the court system. Even with a lawyer, filing for bankruptcy will take time, but when it's done, you'll know that everything was done the right way. You might not want to file for bankruptcy, but if you have to, do it right.
The main goal of bankruptcy is to give a debtor a chance to start over with his or her money. The law has changed recently. There are more ways to figure out a person's financial situation and more steps to take to get rid of their debt. There are different bankruptcy exemptions in different states. The person in debt should look closely at the exemptions in their state. The debtor's lawyer will also talk about the whole bankruptcy process and any state-specific exemptions.
When it comes to the bankruptcy process, the state of California has two different sets of exemptions. The debtor must choose one set of exemptions, and a good bankruptcy lawyer will be able to help the debtor decide which set of California exemptions is best for them.
Both sets of California bankruptcy exemptions are separated into asset, homestead, personal property, insurance, pensions, public benefits, tools of the trade, wages, and other categories. All of these categories of California bankruptcy exemptions should be well known to the debtor. The debtor's lawyer will be able to figure out which set should be used for the bankruptcy process.
Most of California's bankruptcy exemptions are easy to understand and can be found online. A good bankruptcy lawyer will also be able to help a debtor. The "tools of the trade" category includes things like tools, implements, materials, instruments, uniforms, books, furniture, equipment, a boat, or a car that cost between $5,000 and $10,000 if both spouses work in the same field. If the exemption is for tools of trade, the car cannot be claimed.
