Clients overwhelmed with debt have different options when filing for bankruptcy. For personal bankruptcy, Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two major types of filings. Understanding how these bankruptcies differ will help you understand the most effective way to overcome your debt.
At my La Mesa, California, office, I can review your case and determine which type of filing would be the most beneficial for you.
Chapter 7 bankruptcy allows a person to remove certain debts and begin again. Clients are also required to meet the criteria of a “means test,” which evaluates a debtor’s income and checks for previous bankruptcy filings.
A Chapter 13 bankruptcy allows a debtor to reorganize their debt and create a repayment plan. This kind of bankruptcy is for people who do not qualify for Chapter 7. Chapter 13 filers must pay back their debt over a three- to five-year period depending on their income level. To qualify for a Chapter 13 bankruptcy, debtors must meet a few criteria, including not filing a recent previous bankruptcy and be under certain debt limits.
No matter your bankruptcy, there are a few types of debt such as student loans or child support payments, which you cannot eject except under extraordinary circumstances. At Lockhart, Britton & Koch, you receive personal attention from a knowledgeable attorney.
Speaking to an attorney can guide you through the debt relief process and make sure you are creating a reasonable bankruptcy agreement. For a free consultation of your case, call my office or send me a message.
I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.