What Is the Difference Between Chapter 7 and Chapter 13

A Chapter 13 Bankruptcy is a reorganization plan where you make a payment each month in order to catch up when you have fallen behind on secured credit (like a mortgage or car loan). In other words, in Chapter 13 bankruptcy you will need to pay your mortgage, car payment(s), household expenses, and a trustee plan payment each month. For more information you should call a Chapter 13 bankruptcy lawyer to see if it makes sense and whether you can afford the payments required.

Chapter 13 bankruptcy allows you the opportunity to pay back on your secured debt (mortgage or auto loan) over a period of 3 or 5 years instead of paying a lump sum of money at the lender’s request. If you are looking at different bankruptcy options, the more common filing is a Chapter 7 bankruptcy, where you eliminate unsecured debt (credit cards and medical bills) without making any payments.

In most cases, filing a Chapter 13 bankruptcy immediately increases your credit score and begins to rebuild your credit. Chapter 13 bankruptcy will eliminate debt (credit cards and medical bills), stop wage garnishment, stop repossession, and may even allow you to strip, or eliminate, a second (and/or third) mortgage on your home.

You should file for Chapter 13 bankruptcy if you have enough surplus income each month to afford a plan payment in addition to your mortgage. Chapter 13 bankruptcy is a great way to catch up on arrears while eliminating unsecured second or even third mortgages of your home. Before you make any decisions, you should call and discuss your situation with a Los Angeles bankruptcy attorney at our law firm.

Pros and Cons of Claiming Bankruptcy

If you are asking yourself: “Should I file for Chapter 13?” and you live in Los Angeles, California, it is always best to call a bankruptcy lawyer and make sure that you know the difference between Chapter 13 and Chapter 7 bankruptcy.

If you decide that filing Chapter 13 bankruptcy makes sense for you, it is always best to talk to a lawyer, and not rely on a document preparer or paralegal. There are low cost bankruptcy service providers that will get you into court and leave it up to you to figure out how to navigate your way through a complicated process by yourself. If you are asking yourself: “how complicated can this possibly be, and what does bankruptcy do?” you really should talk to a Chapter 13 bankruptcy lawyer and get the best advice possible; most people find the bankruptcy process to be very technical and many judges recommend getting a lawyer if you are filing a Chapter 13 bankruptcy.

File Chapter 13 Bankruptcy

Chapter 13 bankruptcy is not as simple as completing some forms and answering bankruptcy questions. A Chapter 13 bankruptcy lawyer spends years figuring out how to make the process as simple as possible. Most bankruptcy attorney fees for filing bankruptcy in California are very reasonable compared to the amount of work that goes into a typical case. The best thing to do is call and ask one of our bankruptcy lawyers: “How do you file for Bankruptcy” and “what will happen to me if I file for bankruptcy?” Our bankruptcy attorneys will answer your questions and give you the best legal advice possible for free before you file.

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