Orange County Bankruptcy Lawyer
Chapter 7 vs. Chapter 13 Bankruptcy in Southern California
If your financial situation is one of crushing debt, you can end your days of anxiety and stress by getting competent legal help from an Orange County bankruptcy attorney at the law firm of Barrios & Machado. Our firm serves clients in Orange, Los Angeles, and Riverside counties with bankruptcy information, guidance, and legal action for both Chapter 7 and Chapter 13 bankruptcy filings.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the fastest, easiest, and most common form of filing. This type of bankruptcy eliminates dischargeable debts, such as credit card bills, medical bills, dental bills, personal loans, or other unsecured debt. It is also known as straight or liquidation bankruptcy because non-exempt assets may be liquidated and the cash proceeds used to pay off creditors. You are allowed to keep certain exempt property and in a majority of cases, called no-asset cases, no property is taken.
In order to qualify for a Chapter 7, you may need to take a means test. If your income for your household size is less than California's median income, you will be eligible to file a Chapter 7 petition. If your income exceeds the median, then your monthly disposable income must be calculated according to the means test to determine your eligibility. Those who do not qualify for a Chapter 7 may file for a Chapter 13 bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 is a debt reorganization bankruptcy where a repayment plan is created in which you repay creditors over a 3 to 5 year period. The repayment of unsecured debt can range from a partial repayment to a full repayment, depending on your situation. This type of bankruptcy allows you keep assets, such as your home or car by paying off past-due amounts over time. It may even allow you to eliminate a second mortgage. It also allows you to repay these debts at no interest. Once your debt repayment plan has been met over the time period allowed, your debts are eliminated.
A Chapter 13 bankruptcy works for those with a steady income stream, who can successfully make monthly payments through the bankruptcy court to repay creditors.
Talk to an Orange County Bankruptcy Lawyer about Your Case
To find out which type of bankruptcy is your best option, you can discuss your financial scene with one of our dedicated attorneys. Find out what your legal options are for resolving your debt and restoring your financial stability.
Contact an Orange County bankruptcy attorney at the firm to get started on your personal bankruptcy filing today.