With all of the attorney and law firm advertising out there today, people looking for bankruptcy services or a bankruptcy law office usually have heard the terms Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Both are for consumer debt, but which one is best for you? There is information available online that explains the differences between the two, but, even if you know the differences, how do you know which one is best for you? The main difference between a Chapter 7 and a Chapter 13 is that a Chapter 13 may require a repayment plan to pay back a fraction of your outstanding debt. A Chapter 7 completely discharges your debts without a repayment. There is excellent information on the US Courts website illustrating the details of Chapter 7 and Chapter 13. You can find the information here:
http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
Here is some general information to help explain why some people fit better into a Chapter 13 than a Chapter 7. To qualify for Chapter 7 bankruptcy, a debtor must qualify for the bankruptcy by the means test that has been set as a standard for qualifying for Chapter 7 bankruptcy. This means that the debtor must fall within the income qualifications for a Chapter 7 bankruptcy or must be able to prove to be insolvent to qualify for Chapter 7. The median income levels to qualify for Chapter 7 are dependent on the number of people in the household of the debtor. Basically, you can’t be making a lot of money on a regular basis and still file for Chapter 7 bankruptcy. If you make too much money to qualify for a Chapter 7, you can look to bankruptcy relief in Chapter 13. So, a Chapter 13 is basically the option you would take if you make too much money to qualify for Chapter 7. This is the most basic scenario that is usually the reason why some people need a Chapter 13 instead of a Chapter 7.
There are many various scenarios for people that make them a better fit for Chapter 13 instead of Chapter 7. The best person to tell you which one is the best fit for you is a bankruptcy attorney. When you go into a law office, you should have all of your facts and numbers with you to help determine which bankruptcy is best for your situation. You may not want to go into a meeting with an attorney with a specific bankruptcy in mind because there may be more options to you available. Generally, a Chapter 7 service is much cheaper than a Chapter 13. You may be able to save some resources by keeping your options open.
At Bankruptcy Law Professionals, we will listen to your situation and let you know which bankruptcy is best for you. Our goal is to save your resources and get you into the best solution for your particular situation and your goals for the future. We take all of your information into account and also make sure we are leading you to a long term plan that is beneficial for your future.
Bankruptcy Law Professionals has the top Riverside bankruptcy attorney office along with locations in Tustin and Long Beach. If you would like to schedule a consultation with us, please contact us at (855) 257-7671.
