Consumer Bankruptcy
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy generally allows debtors to discharge all of their unsecured debts (which includes the likes of credit card debts and medical bills) within a 4 month period. The purpose of bankruptcy is to initiate credit repair. The advantage of declaring a Chapter 7 case is debts can be eliminated in a short time frame, usually over 3-6 months. However, in a chapter 7 case, the debtor likely will lose some assets that are not covered by the exemption statute. Furthermore, lien stripping is not an option in Chapter 7.
What is Chapter 13 Bankruptcy?
Chapter 13 offers the debtor a chance to restructure their debts and catch up back payments (debts) and back taxes over a longer period of time, generally a 3-5 year period.
On average Chapter 13 declarations means the debtor gets to keep all of their property, exempt and non-exempt. Through chapter 13 you can also take care of larger debt loads like mortgages where 2nd or 3rd mortgage liens can be stripped of they are no longer secured by the value of the property. Chapter 13 cases, however, are not as short term as Chapter 7, the repayment period is over a few years rather than a few months. You will pay back your debtors with your disposable income which is calculated by – all living expenses from your income.
Bankruptcy Lawyers List:
Law Office of Cecilia Chen: San Diego Bankruptcy Attorney
Phone: (619) 374-8360
Email: info at cclegalgroup.com