After determining if you qualify to file for bankruptcy, you next need to determine which chapter is best for you. Let’s examine the pros and cons of each chapter.
Chapter 7 will allow you to discharge most of your debts, except for a few limited items such as student loan debt, back child support and alimony payments, and tax debts. Chapter 7 allows filers to get a “fresh start,” but it does come with potential repercussions. Specifically, you may have to forfeit some of your property.
This depends largely on the type of property that you have. In California, certain types of property carry exemptions. Typically, the following types of property will be exempt, up to a certain dollar amount:
How is Chapter 13 different from Chapter 7? The largest difference is that in Chapter 13, you’ll be required to make monthly payments to a bankruptcy trustee as a repayment plan.
Bankruptcy filing in Northern California can help relieve the burden of debt, but you need an experienced guide to make sure you get the protection that’s right for you. Contact the licensed attorneys at Wells, Call, Clark, Bennett & Clawson to schedule a consultation.
This question is difficult to answer without fully analyzing your income, assets, and debts, but if you have a lot of unsecured debt, then Chapter 7 is probably right for you. If you have a mortgage that you’d like to catch up on, then Chapter 13 might be right for you. But if you are already $50,000 behind and are struggling to pay your mortgage right now, then Chapter 13 probably isn’t a good idea. The best way to determine which chapter is best for you is by speaking with a licensed attorney about your unique situation. After discussing your income and debts, you’ll have a better idea of which path is best for you.
If you’d like to speak with an attorney at our firm, please contact us online or fill out the form below so that you can speak directly with a Northern California attorney regarding your situation. Our goal is to answer your questions and provide our clients with a smooth, painless filing process.