More Than 15 Years of Bankruptcy Representation in Southern California
If you are considering filing for Chapter 7 or Chapter 13 bankruptcy, you are probably wondering how they are different. While both provide debt relief and other financial benefits, they differ in many ways. Chapter 7 bankruptcy is known as "liquidation" or "straight" bankruptcy, and discharges unsecured debt. Chapter 13 bankruptcy or "debt reorganization" bankruptcy, allows a debtor to restructure debt into a three- to five-year repayment plan. Many times, those who do not qualify for Chapter 7 bankruptcy file for Chapter 13 bankruptcy instead. Every situation is different, and whether bankruptcy or which type of bankruptcy works best for you is something our experienced Riverside bankruptcy attorneys can help you with.
At the Law Offices of Buckey & Schurter, we have been helping people throughout Southern California file for bankruptcy for more than 15 years. Our skilled bankruptcy attorneys will evaluate your specific financial circumstances and determine whether Chapter 7 or Chapter 13 bankruptcy is right for you. In some cases, bankruptcy may not be the best option. Our firm believes in looking at your debt problems comprehensively and will explore all possible solutions including loan modifications and refinancing.
Find out whether Chapter 7 or Chapter 13 bankruptcy is right for you. Our attorneys will be with you every step of the way. Contact us today to schedule your free initial consultation.
Major Differences Between Chapter 7 and Chapter 13 Bankruptcy
Generally speaking, these are the major differences between Chapter 7 and Chapter 13 bankruptcy:
- Debt liquidation vs. debt reorganization: Chapter 7 bankruptcy discharges unsecured debt completely, while Chapter 13 reorganizes debt into a three- to five-year repayment plan.
- Qualifying for bankruptcy: You cannot file for Chapter 7 bankruptcy unless you qualify. Unless you pass the bankruptcy means test, Chapter 13 is left as an alternative. The means test is based on your monthly income. People who have a regular income are not as likely to qualify for Chapter 7 since their income level might be too high. However, this usually means they have a steady flow of income that is better-suited for a Chapter 13 monthly repayment plan.
- Keeping your property: The advantage of Chapter 13 bankruptcy is that you get to keep important assets like your car and home. Chapter 7 bankruptcy differs in that there is the possibility of nonexempt assets being taken away.
- Length of time: Chapter 7 bankruptcy is shorter, usually finishing in three- to four- months. Chapter 13 bankruptcy lasts three- to five-years.
Contact Our Skilled Corona Chapter 7 Bankruptcy Attorneys
We encourage you to contact us today for a free initial consultation to discuss whether Chapter 7 or Chapter 13 bankruptcy is a good option for your situation. Our knowledgeable Corona, California, bankruptcy lawyers are standing by to assist you.
