Chapter 13
Chapter 13 is a reorganization of debts "payment plan" bankruptcy where you make monthly payments to a Chapter 13 trustee over a 3-5 year period.
In most cases, my clients pay through their plan only the applicable car debt (usually 4.5% interest or less), tax debt (usually 0% interest) and/or mortgage arrearages (0% interest). The other dischargeable debt is elimnated just like with Chapter 7.
Chapter 13 is best for people who have high car payments, arrearages on a home loan and/or tax debt. It is also a great option to remove a lien(s) on a house if the house value is less than what's owed on the 1st mortgage. In addition, if you are one of the few whose income is too high or asset values are too high, then Chapter 13 may be the best option.
The downside of Chapter 13 is that the commitment is 3-5 years. However, it is usually the best option if we can help lower your car payment, get caught up on a mortgage, pay down newer tax debt, and/or remove liens on your home.
To discuss your situation, please call for a Free Attorney Consultation: 831-655-5111.
Chapter 7
Chapter 7 will eliminate debts in about 90 days and thus gives you the quickest and easiest "fresh start."
Compared to Chapter 13, you will pay less in legal fees and have no trustee fees or long-term commitments. It is the best option for the majority of my clients.
Dischargeable debts generally include credit card debt, medical debt, older tax debt, payday loans, personal loans, lines of credit, and most secured debt.
If you want to keep your house or your car, you will have to keep paying your debt. The reason is that even though you discharge your obligation on such debts, if the creditor has a lien ("secured creditor"), they can repossess or foreclose if they don't receive payments.
Although Chapter 7 is sometimes referred to as "liquidation bankruptcy" because the trustee can liquidate "non-exempt" assets, this is rarely an issue due to California's generous exemptions. Fortunately, for the vast majority of people, this is not a concern!
To discuss your situation, please call for a Free Attorney Consultation: 831-655-5111.
Simple Process
Give us a call or use the contact form on our website. We will then immediately arrange a free phone or in-person consultation with attorney Chris Jackson. Depending upon your situation, this may last 15-45 minutes. He will clearly and thoroughly explain your options, answer all your questions, and let you know what he would charge you if you decide to proceed with bankruptcy.
After that, you can retain Chris for as little as $500 down. Once you are a client, we will answer your creditor calls while preparing your case. We can have a case ready to file the same day if necessary, but on average it takes about 3-5 days after you provide us your documents. However, if you need 2-3 months or so to pay the balance of fees, we'll file whenever you are ready. No matter how long you take, we'll answer your creditor calls to ease the burden on you.