Bankruptcy Facts: Chapter 7 And 13

Overview

If you or a loved one is battling with mounting debt, you are not alone! A Murrieta bankruptcy attorney is on your side to help guide you through the difficult process of eliminating your debt and starting anew. No one ever plans to file to bankruptcy, but sometimes it is the only option. Remember that bankruptcy is not the end of the world, but is rather the beginning of a new era in your life.

There are two main kinds of bankruptcy claims that an individual can file. These are Chapter 7 and Chapter 13 bankruptcy filings. Both of these types have specific strengths and weaknesses to offer you, should you choose to pursue them. Understanding the basics will help you make the right choice.

Chapter 7

In this kind of bankruptcy filing, which is usually ideal for clients with a low income, you agree to auction off a share of your property and assets in order to pay off, or ‘liquidate’ a portion of your debt. During this process, an order is set by the judge preventing your creditors from contacting you and harassing you. The court will determine what percentage of your assets are essential and what can be auctioned off, the specifics of which will depend on a variety of factors. Once this process is complete, however, your debt is considered completely discharged and your debt is gone forever!

Chapter 13

Under this type of filing, the client agrees to undergo a payment restructuring. Rather than surrendering your property to the judge to distribute for liquidation, you have your debt consolidated into an easy monthly payment adjusted to your specific needs and financial situation. Once this payment plan is complete, which usually occurs between 3 and 5 years, your debt is finished. This plan is ideal for those with a significant income or property and assets that they wish to protect.

Seek A Bankruptcy Attorney For Help

Make sure that you contact a Murrieta bankruptcy lawyer before you make any financial decisions that can affect your future. With the help of a skilled advocate from Singleton Smith Law Offices, your options can be examined and the best course of action determined.

Don’t delay! Contact a Murrieta bankruptcy attorney today!