Bankruptcy FAQ: Chapter 7 and 13

Bankruptcy Overview

If you are facing the prospect of filing for bankruptcy, it is easy to feel overwhelmed and powerless. There is hope, however! With the help of an experienced San Diego bankruptcy attorney with the necessary knowledge and skill, you will see that there are a wide variety of options to choose from to help you discharge your debt. The two most common forms of bankruptcy filing are Chapters 7 and 13. By utilizing one of these debt dissolution strategies, you can end the burden of debt and gain a new lease on life!

Choose the Best Option for You and Your Family

In order to obtain the best results for yourself and your family, it is important to understand the similarities and differences between these two types of filings. Remember, it is vital that you speak with a trained legal professional before making any decision regarding your financial future.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often referred to as 'liquidation', is the most common form of debt relief, and can be completed in as few as two or three months. First, you will provide a full account of your assets and debts to the court, which will issue a stay preventing your creditors from harassing you regarding your debt. Following this, any assets you own that are deemed non-exempt will be taken by the court and 'liquidated', or sold off, and the money given to your creditors. Following this, your debt is considered completely discharged!

Chapter 13 Bankruptcy

Under Chapter 13 filing, instead of seizing your possessions, the court instead reviews your debts and helps you create a repayment plan, usually scheduled over three to five years, consolidating all your debt into one manageable monthly payment. This is less common than Chapter 7, but can be beneficial to clients who have assets they do not wish to be liquidated by the courts and/or a steady income. Once these payments are finished, your debts are again considered completely resolved.

Ask For Help from a San Diego Bankruptcy Lawyer Right Away

Determining which plan to file under can be difficult, and will require a full knowledge of your finances. With the aid of a skilled San Diego bankruptcy attorney at the Law Office of Jon M. Cooper, your financial future can be secured. The road to debt relief begins as soon as you speak with trained legal counsel at our firm.

Please, do not hesitate to contact a San Diego bankruptcy attorney at our office right away for a free consultation!