What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
The majority of bankruptcy cases that are filed in the United States generally fall within the realm of Chapter 7 or Chapter 13 Bankruptcy. Whether you need a Chapter 7 or Chapter 13 Bankruptcy case depends on several factors like your debts, assets, income and financial goals for the future. Let’s take a quick look about both Chapter 7 and Chapter 13 bankruptcy to help you decide which is right for you.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is a liquidation bankruptcy that is designed specifically to knock our unsecured debts like credit card and medical bills. In order to qualify for Chapter 7 bankruptcy in the United States, you must literally have no disposable income. If you’re income is too high you will be forced to file for Chapter 13 bankruptcy, which we’ll talk about later.
Once you’ve filed for Chapter 7 bankruptcy, a state appointed trustee will be assigned to administer your case. It’s the Chapter 7 trustee’s job to review your paperwork and supporting documents and to sell your non-exempt property in order to pay back your creditors as much as possible. However, if you don’t currently have any nonexempt assets, your creditors won’t receive any payment. This is why Chapter 7 bankruptcy is usually reserved for those suffering of low income debt with little or no assets who desire to rid themselves of unsecured debt.
Chapter 13 Bankruptcy
On the other hand, Chapter 13 Bankruptcy is designed to help debtors reorganize. If you’re able to pay back at least a portion of the debts that you owe, Chapter 13 Bankruptcy is probably right for you. This is also the case as far as your income goes, if you make too much income to file for Chapter 7 Bankruptcy, you’ll have no choice but to file a Chapter 13 case. However, lots of debtors because if offers a lot of benefits that Chapter 7 Bankruptcy does not.
In addition, if you plan on filing for Chapter 13 Bankruptcy, you’ll get the opportunity to catch up on your missed mortgage payments. This way you’ll get to keep all of your property, including nonexempt assets. But, in return, you’ll have to pay a portion of your debt with the assistance of a payment plan that’s built around your income, expenses and other types of debt. Generally, we suggest Chapter 13 Bankruptcy to debtors who can still afford to make monthly. If you’re unable to pay off any non-dischargeable debts like alimony or child support, Chapter 13 Bankruptcy is right for you.
If you or one of your loved ones are currently considering filing for Chapter 7 bankruptcy and are looking for representation, don’t hesitate. Call the offices of KE Law in order to get yourself back on your feet as soon as possible. Contact us at 323.426.8300.
Experienced Los Angeles Bankruptcy Lawyers
One of the most important parts of filing for Chapter 7 Bankruptcy is making sure that you’ve found the right lawyer. In order to do this, let’s go over a couple things that you should be looking for in regards to experienced bankruptcy lawyers in Los Angeles. Afterwards, you can schedule an initial consultation so that you can find out more about your options before you decide who to hire.
Before Making an Appointment
Whether you’re making calls to lawyers that your friends have referred to you or your browsing the internet’s directories for reputable attorneys, here are a couple of the things that you should be looking for in an experienced Los Angeles Bankruptcy lawyer.
Making sure that your final choice has a significant amount of experience in the field. However, years of practice is not always a great indicator of an attorney’s experience. If you’re interested in hiring a lawyer to help you file for Chapter 13 bankruptcy, an experienced Los Angeles bankruptcy attorney that’s handled tons of Chapter 7 cases may not be the right attorney for you. Make sure that the experienced Los Angeles Bankruptcy lawyer of your choosing has experience in the type of bankruptcy you plan to file.
This is where things start to get a little bit tricky. You may have found an experiences Los Angeles bankruptcy attorney that has been practicing for twenty years, but might not have the best track record. At the same time, hiring a younger and less experienced Los Angeles bankruptcy attorney that is both smart and hard-working might not be the best choice as they lack experience. Make sure to ask your option for referrals from former clients, and if available, try to speak directly to their previous clients.
Before you make your first appointment with your experienced Los Angeles Bankruptcy lawyer, make sure to find out what they generally charge for cases that file the type of bankruptcy that you plan to file for. Though some of the cost may be too expensive, cheaper isn’t always better. You don’t want your experienced Los Angeles bankruptcy attorney to be cutting corners, and you certainly don’t want to be handed by a firm that systematically processes its client’s cases. Shop around the area to find out what the average Los Angeles bankruptcy lawyer charges before making any commitments.
Do your lawyer’s recommendations seem sound?
Once you get to meet with an experienced Los Angeles Bankruptcy attorney in person, ask him or her what action they recommend taking first in your case. Go home and think about this. Do their recommendations make sense to you? If you still feel hesitant chances are that they’re not the right attorney for you.
If you or one of your loved ones are currently considering filing for Chapter 7 Bankruptcy in the Los Angeles area don’t hesitate to contact the offices of KE Law. Contact us at 323.426.8300.