Are you looking for a way to get out of debt? Chapter 7 or Chapter 13 bankruptcy may be a viable option for you. As a bankruptcy attorney, I help people throughout the Bay Area determine whether bankruptcy is the best solution for their financial situations. I also help people determine the form of bankruptcy to choose, educating them about the costs and benefits of each.
I am Kendall David Coffman, a skilled California bankruptcy lawyer who has helped many people determine which bankruptcy filing suits their situation best.
Chapter 7 and Chapter 13 Bankruptcy Differences
I believe that determining the type of bankruptcy to file is a decision that you should make with full knowledge. Additionally, if I do not think you need to file bankruptcy, I will tell you so.
The following are key differences between Chapter 7 and Chapter 13 bankruptcy. The type of bankruptcy for which you qualify will be determined by a means test. In both types of bankruptcy, an automatic stay will be issued on your behalf. The automatic stay puts an immediate stop to creditors' attempts at collecting debt.
- Chapter 7 bankruptcy: This type of bankruptcy is considered debt liquidation. As a debtor, you will not be required to pay back a portion of your debt. In some cases, the debtor's assets are removed from their possession and sold to pay debts. Upon successful completion of a Chapter 7 filing, your unsecured debt will be discharged.
- Chapter 13 bankruptcy: This type of bankruptcy is considered debt reorganization. As a debtor, you will be required to pay back a portion of your debt. Your debt will be restructured, and then you will enter into a repayment plan that takes place over a three-to-five year timeframe. In a Chapter 13, you will likely be able to keep your assets. Chapter 13 is generally the advisable option for homeowners who need to stop foreclosure. If you have two loans on your house, you can also discharge the second mortgage as an unsecured claim. It is also the option that most people choose to stop repossession of their vehicles. Upon successful completion of a Chapter 13 bankruptcy, your debt will be discharged.
Contact My San Mateo Bankruptcy Law Firm
Filing for bankruptcy can be frightening if you feel as if there is no one standing by your side. For more than a decade, I have provided representation and guidance in Chapter 7 and Chapter 13 filings. I offer a free 45-minute consultation. To schedule yours, call me locally at 650-295-0934 or toll free at 866-899-8561. You can also contact me online.