Price Law Group - California Articles Chapter 7 and Chapter 13: Which One Is Right For You?

Chapter 7 and Chapter 13: Which One Is Right For You?

By Price Law Group  Dec. 6, 2012 1:40p

Choosing The Best Form Of Debt Relief For You And Your Family

With the threat of financial insolvency looming over the heads of countless Americans throughout the nation, the economic turmoil our country faces seems to have few signs of ending. Still, there is hope for a better future for your family on the horizon! With the aid of a skilled attorney, you can fight back against your creditors and end your debt as painlessly as possible.

Once you have decided to file for bankruptcy and begin your path to financial freedom, the first and most important decision before you is choosing the right chapter to file under. Depending on your specific finances and debts, the answer may not be obvious. Speak with a bankruptcy attorney before making any decisions that can irrevocably affect your future.

The Long Road or the Short Road?

Perhaps the most important consideration when choosing between Chapter 7 debt liquidation and Chapter 13 debt consolidation is the reliability of your future finances. For clients with a steady income and consistent job prospects, it may be best to try a Chapter 13 repayment plan. For those without such good fortune, however, Chapter 7 may your only option.

Under Chapter 13, a trustee assigned by the court will review your assets and finances along with your various debts in order to create a simple payment plan to satisfy your creditors while easing your financial burden. The arrangement, which is usually scheduled over three to five years, consolidates your debts into a single monthly payment. The amount you will be asked to pay is designed to be consistent with your income, allowing you to make reasonable installments without sacrificing unnecessarily.

Chapter 7, on the other hand, is usually finished after several months. Your assets are examined by the trustee, and each of your non-exempt possessions is taken into the custody of the court, to be sold off to generate capital. This money is then given to your creditors, with any remaining debt you owe waived. Fortunately, many of your most precious possessions may be exempted from this process, including your home, your furniture, clothing, vehicle, and any tools you need for your job.

A Bankruptcy Firm Can Guide You Today

If you are considering filing for bankruptcy in Fresno or anywhere California, it is imperative that you consult a trained professional beforehand. With the experienced team at Price Law Group, you can begin the process of rebuilding your life as soon as possible. We urge you to visit our website, to learn more about your financial options. With our help, you can wipe away your debt sooner than you think.

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