Chapter 7 or Chapter 13 Bankruptcy in San Diego, California?

Which is the best solution for my situation?

Understanding the Differences Between Chapter 7 and Chapter 13 Bankruptcy

One of the most frequent questions that comes up with prospective clients who wish to file for bankruptcy is about the difference between Chapter 7 and Chapter 13 Bankruptcy. While both of these forms of bankruptcy allow individuals to discharge their debts and to find debt relief, they accomplish this task in significantly different ways.

Under Chapter 7 Bankruptcy, individuals can discharge most types of debt, including credit card debt and medical bills, and will no longer be liable to repay those debts. While Chapter 7 Bankruptcy often involves the liquidation of homes, cars and other large assets, the debt is discharged quicker and easier than in Chapter 13 Bankruptcy.

In Chapter 13 Bankruptcy is more about debt consolidation than liquidation. Debtors repay creditors through a 3-5 year repayment plan that allows debtors to hold onto their property in most cases. Chapter 13 Bankruptcy does not immediately discharge debts, but can make it easier for individuals to afford the monthly payments associated with their repayment plan.

There are pros and cons to each form of bankruptcy. Bankruptcy attorney Leonard J. Ackerman can help you determine what solution is right for you.

Pros of Chapter 7 Bankruptcy:

Allows you to discharge your debts quicker and easier in order to begin the process of rebuilding your credit right away

Immediately stops collection efforts against you and your property after your bankruptcy is filed. Creditors may be subject to sanctions if they continue collection activity

You will no longer be liable for the debts discharged in a Chapter 7 bankruptcy

Pros of Chapter 13 Bankruptcy:

Allows you to discharge debts that a Chapter 7 bankruptcy cannot discharge, such as tax bills and other debts

May allow you to prevent a foreclosure or repossession on your house, your car or other large assets

If you do not qualify for Chapter 7 under the bankruptcy means test, a Chapter 13 Bankruptcy may still be available for your case

Contact American Debt Relief for a Free Consultation to Learn About Your Options

To figure out whether Chapter 7 or Chapter 13 Bankruptcy is the right option for your situation, contact an experienced bankruptcy lawyer at American Debt Relief. Attorney Leonard J. Ackerman has handled numerous bankruptcies in San Diego and understands the issues that you are likely to face in your case. We can help you prepare all paperwork and will tailor your bankruptcy to your individual needs.

American Debt Relief is a debt relief agency. We help people file for bankruptcy relief under the California Bankruptcy Code.