Important Information: What to Know Prior to Hiring a Bankruptcy Lawyer in Temecula CA

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For those who are currently having issues paying their debts or suffering from threats of repossession, foreclosure or garnishment, they might want to consider filing for bankruptcy. This is, in many cases, a smart and an effective way to deal with these types of financial issues; however, it is important to keep in mind, if a person wants relief from creditors, they have to be fully prepared. This is why it may be a good idea to hire a bankruptcy lawyer in Temecula CA for assistance with the process.

What Type of Bankruptcy Will Be Filed?

There are two basic options: chapter 7 bankruptcy or chapter 13 bankruptcy.

Chapter 7 bankruptcy, which is also known as a fresh start bankruptcy, will allow all of the unsecured debts that a person has to be canceled or discharged; however, any nonexempt property has to be given to a trustee to pay the various creditors. Secured property can be retained if the person is current on their payments and if they are able to continue with the payments.

Chapter 13 bankruptcy, which is referred to as reorganization, allows the person to retain possession of all of their valuable property. Without bankruptcy protection, this may be lost. A person will only be able to hold on to this property if they continue to make regular payments.

Wait to File – but Not Too Long

This legal proceeding allows you to receive a fresh start financially speaking by eliminating your legal obligations to pay off your debts. However, because you are only allowed to file every six years, you need to ensure that you pick the right time to file. If you wait too long, it will give your creditors the opportunity to seize your property, but i If you file too quickly, you may find yourself in the same situation, just a few years later.

Don’t Acquire New Debt Directly before Filing

Those who are filing bankruptcy should not acquire any new debt between 70 and 90 days before filing for bankruptcy. This will include a new purchase, a cash advance or even a loan against their retirement plan. If they do acquire debt in this time period, the creditors might object to the discharge you have requested.

Hiring a bankruptcy lawyer in Temecula CA is a smart move when facing this financial need.

For more details visit The Law Offices of Rosenstein & Associates at