What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
If you’re considering filing for bankruptcy due to debt, you may be wondering which type of Chapter bankruptcy procedure to file. Two of the important types of bankruptcy are Chapter 7 and Chapter 13. Depending on the specifics of your financial situation, one may benefit you more than the other. If you don’t have property and have extensive credit card debt, you may want to consider Chapter 7. If your income is too high or your home is going into foreclosure, Chapter 13 may be a better option. A bankruptcy lawyer can help you to figure out which process will work best for your situation.
Differences Between Chapter 7 and Chapter 13 Bankruptcy
Generally speaking, Chapter 7 and Chapter 13 bankruptcy are two types of bankruptcy. It is much more difficult to qualify for Chapter 7 bankruptcy, as your monthly income must be lower than the median for the household of your size. This is determined with a means test. In Chapter 7 bankruptcy, a trustee will take over your assets and distribute them to pay off your creditors. In Chapter 13 bankruptcy, you will pay of your debts over time, but may be able to keep some of your property (unlike Chapter 7). A skilled bankruptcy attorney can help you to figure out which is the best type of file, and will guide you throughout the entire process.
Call for a Free Consultation With a Bankruptcy Lawyer Today
When you’re struggling financially, a bankruptcy attorney can help remedy your situation. We are able to explain the different types of bankruptcy, review your specific situation and advise as to the best choice for your case. We offer free consultations where we can learn the details of your case, and will be able to help you during this confusing time. The expert legal staff at the Law Office of Kerry P. O’Brien of California can help you deal with all of the details and to decide which bankruptcy type will benefit you the most. We serve the cities of Los Alamitos, Long Beach, Lakewood, Huntington Beach, Seal Beach, Garden Grove, Westminster and Anaheim. Stop by our website at kerryobrienlaw.com or call us at 866-983-0747 and allow us to be your legal advocates today.