When most people think of declaring bankruptcy, they do not realize that there are different kinds of bankruptcy. What they are actually thinking of in most cases is actually a Chapter 7, in which the individual declares bankruptcy paying his or her creditor and sees his or her debt discharge within only a few months. Many people, however, cannot meet the strict eligibility requirements for Chapter 7. A Chapter 7 petition that is denied will typically be converted to a Chapter 13 filing. Eligibility for Chapter 13 is far more generous than for Chapter 7. In order to qualify for Chapter 13, it is necessary to demonstrate that the amount you owe is unsecured debts such as credit cards, collection agency accounts and past-due utility that meets the amount of state requirements. Your home mortgage and car loan, also has an amount based on state requirements. Speak to our experienced attorneys to see what you may be qualified for at (310) 894-6440.
While it may not be as fast as Chapter 7, and also involves the continued repayment of your debts, Chapter 13 bankruptcy does have its own advantages. In fact, some of these advantages are significant enough that a debtor may choose Chapter 13 despite being eligible under Chapter 7. A major advantage of Chapter 13 is that it is typically possible to include any missed mortgage payments into the repayment plan, thereby giving you a couple years to remedy the mortgage and avoid foreclosure. Amount of years can vary based on state and county. Another advantage of Chapter 13 has to do with the fact that, unlike Chapter 7, there is no possibility of losing assets to liquidation. In the event that the state and federal exemptions would be insufficient to protect your assets against liquidation attempts on the part of bankruptcy trustee, Chapter 13 may be your best answer for protecting your estate.
Further, the credit damage caused by this type of bankruptcy is not as great as it is for the other. Whereas a Chapter 7 bankruptcy can remain on your credit report for 10 years, a Chapter 13 case will disappear from your report after 7 years have passed. Although it may take longer to reach the point when your debts are finally discharged., you do not have to wait until the completion of the process to begin enjoying the benefits of bankruptcy under Chapter 13. From the moment you file your petition, you will be protected by an automatic stay against repossession, wage garnishment and foreclosure.
If you are in need of an attorney to help you get appropriate compensation and medical care you deserve, you should contact an attorney today. Our experienced lawyers will help you find the solutions you need for your legal issues.
If you have any questions about the information provided above, please contact Law Mart.
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