Chapter 7 or Chapter 13?

Chapter 7 - Liquidation

Chapter 7 Bankruptcy case is know as a liquidation case because in a Chapter 7 Case you essentially walk away from your debts and start new.

If the majority of your debts are unsecured debts, such as credit card debts, medical bills, or payday loans, a Chapter 7 is the fastest and most efficient way for you to walk away from all those unsecured debts. 

If you have a vehicle with a loan that you no longer want to keep or can no longer afford to keep, Chapter 7 is the best way for you to walk away from unwanted vehicles and loans, without having to worry about the lender coming back to you for the deficiency balances. 

In a Chapter 7, you can voluntarily "surrender" the vehicle back to the lender and discharge the remaining balance of the loan at the same time. 

In a typical Chapter 7 case, all debts are declared and all dischargeable debts are discharged after approximate 3-6 months from the date of petition filing. 

Chapter 7 is ideal for: 

  • Individuals with primarily unsecured debts (ex. credit card, medical bill, etc)
  • Individuals without tax debts 
  • Individuals with no steady income 
  • Individuals with low net worth and assets

Contact Us Today To See if Chapter 7 Is Right For You

Chapter 13 - Reorganization

Whenever we hear about a company or a city filing for bankruptcy, it is always followed with information about how they are reorganizing and regrouping to come out of the bankruptcy stronger and better managed. 

A Chapter 13 is the equivalent of a reorganization but for an individual consumer. The goal of a Chapter 13 is to help you to manage your debts and pay only what is necessary so you come out of the bankruptcy stronger and better.

In a Chapter 13, all your debts will be declared and a reorganization of your personal finances take place. 

Some debts must and will be repaid, some renegotiated, and others will be discharged. 

Base on your personal finances, a repayment plan will be submitted by you, the Debtor, and approved by the Court.

Over the next 3-5 years, you will follow through with your repayment plan to repay those debts that must be paid. 

Upon the completion of your repayment plan, you will have repaid all debts that must be paid and receive a full discharge on unsecured debts that are dischargeable.

Chapter 13 is ideal for: 

  • Individuals with real property and is seeking to keep the property
  • Individuals with vehicle loans to repay
  • Individuals seeking to mange tax debts

Contact Us Today to See if Chapter 13 Is Right For You