Nations experience economic recessions, and fortune 500 companies have a series of bad fiscal years. Why should you feel ashamed that your finances are not working out? Are you at a place where you feel like you are stranded on an island of debt?
At Chang & Diamond, APC, we are aware of the overwhelming feelings that come with being heavily burdened with debt. As a result, we dedicate a considerable part of our practice to educate our clients to help them make knowledgeable decisions.
After deciding that declaring bankruptcy is the way to go to ease your financial burden, you may be left wondering which chapter would suit your situation best. However, our El Cajon bankruptcy attorneys are here to help you understand the variables between filing under Chapter 7 or 13 of the bankruptcy code.
Chapter 7 Bankruptcy
In other terms, it can be referred to as Straight Bankruptcy.’ When you file for bankruptcy under Chapter 7, you get quick relief from your creditors. This is because all your unsecured debt is discharged, hence acquitting you of any debt liability.
Eligibility for Chapter 7 requires that you should have little or no income left after paying your basic utility bills, or you’ve not been meeting your basic expenses. However, other requirements include passing the means test’ and completing a pre-filing course with a credit adviser.
The filing complexities under this chapter can be tricky, and that is where our bankruptcy attorneys El Cajon come in to support you. The good news is that most Chapter 7 debtors manage to retain some or all their property. However, if you have some assets that are not exempted by the state, they may be liquefied to repay your creditors. If you own a house, foreclosure can be halted if you can manage to get current on the mortgage.
Our El Cajon lawyers will unwaveringly support you, until your debts are finally discharged in a matter of three or four months.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy champions for the reorganization of debts. If you have a regular income and can pay back part of your debt through a repayment plan, then you should visit our bankruptcy lawyers El Cajon who will help you file for Chapter 13 bankruptcy.
Do you have any significant assets, like cars or a home that you would like to keep? We can work out a payment plan for you, to pay off your creditors over a period of three to five years. However, you should bear in mind that your secured debt must not exceed $1,184,200 and your unsecured debt should not exceed $394,725.
Chapter 13 bankruptcy allows you to catch up on missed car payments or mortgage. In fact, non-dischargeable debts such as alimony and worker wages are considered a priority in your repayment plan.
There are no major complexities involved in filing for Chapter 13 bankruptcy. However, you are required by the law to submit proof in the form of a repayment plan demonstrating your capacity to repay your creditors. Who else than your dedicated El Cajon bankruptcy lawyers to assist you with this process?
In a nutshell, at Chang & Diamond, we purpose to restore the esteem and financial health of our clients. That said, we hope this information was helpful and always remember that you have a friend nearby, right here in El Cajon.