Find a Bankruptcy Lawyer in Modesto, California
In Modesto, California, bankruptcy is a court procedure in which a person or business has some or all of their debts excused (or "discharged"), theoretically allowing them to start with a clean slate, and move on with their lives no longer drowning in debt (and hopefully having learned to better manage their use of credit in the process). Remember, though, that bankruptcy should not be viewed as a convenient way to get out of debt that you don't feel like paying back. It is meant to serve as an option of last resort for people and businesses faced with debt that they will probably never be able to pay back. The decision to file for bankruptcy can result in negative consequences, such as damaged credit ratings, which must be seriously weighed against the potential benefits.
For that reason, it would be prudent to speak with a good Modesto, California bankruptcy attorney. This attorney will be able to advise you as to whether or not filing for bankruptcy is a good idea, given your particular situation. This determination is highly dependent on the details of each individual case, so a Modesto attorney's advice is truly indispensable.
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Types of Bankruptcy in Modesto, California
There are 3 bankruptcy schemes that are commonly used in Modesto: Chapter 7, Chapter 13, and Chapter 11 bankruptcy. Bankruptcy is governed by federal law, so the procedures in Modesto, California are very similar to what they will be anywhere else in the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is complete, and the proceeds handed over to the creditors, the debt is viewed as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are totally or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.
The other popular bankruptcy system in Modesto is Chapter 13 bankruptcy. Under this system, the debtor's debts are restructured, instead of discharged. This involves creating a new repayment plan that the debtor wil find manageable, given his or her income, and that will result in the creditors being paid in a reasonable amount of time. When a repayment plan is approved by a court, creditors are legally barred from attempting to collect under the orginal terms of their agreement with the debtor. Chapter 11 bankruptcy is primarily used by businesses, though it can be used by individuals (which is quite rare). Chapter 11 bankruptcy requires that the debtor come up with a reorganization plan - essentially telling the court how they propose to cut costs, streamline their operations, and pay their debts. This plan must be approved by the participating creditors through a simple majority vote.
One main advantage of Chapter 11 bankrutpcy is that it allows businesses to continue their operations while the process plays out. Furthermore, their stock can still be bought and sold.
How Can a Modesto Bankruptcy Lawyer Help?
One should not make the decision to file for bankruptcy in Modesto lightly. Before making any such decision, it would be highly adviseable to contact an experienced Modesto bankruptcy attorney.
There are 190 Bankruptcy, Banking and Credit cases posted in Modesto
Cases Posted to LegalMatch listed by ZIP Code:Bankruptcy Attorneys in the Largest CA Cities
Life in Modesto
Modesto is a city in Stanislaus County, California. As of 2009, it has a population 211,000, making it the 17th most populous city in California.Modesto was founded in 1870, as a stop along the new railroad that connected Los Angeles and Sacramento. Modesto's economy is based almost entirely around agriculture, and the other industries that support the agricultural industry. During World War II, Modesto, California was a major source of food for the war effort.
Unfortunately, Modesto is burdened with a high crime rate, and a struggling economy with chronic unemployment well above the national average. However, Forbes Magazine has ranked it fairly highly in its "best bang for your buck" ratings, suggesting that Modesto's real estate market is an excellent destination for bargain-hunters. During the 2000s, the downtown area of Modesto was revitalized and modernized, with significant additions made to the Gallo Center for The Arts, as well as many other improvements.
If you live in Modesto, California and need an attorney, you're in luck. Modesto, California lawyers can handle just about any type of legal problem they're presented with.
