Chapter 7 Versus Chapter 13

Chapter 7 Versus Chapter 13 | San Diego Attorney

California Lawyer – Discuss Bankruptcy Options

Chapter 7 and Chapter 13 are the two main forms of consumer bankruptcy. Each type of bankruptcy has specific advantages, and different types of bankruptcy are more appropriate under different circumstances.

Are you thinking about declaring bankruptcy? Do you have questions about Chapter 7 versus Chapter 13 bankruptcy? You do not have to make these difficult decisions alone. At the San Diego bankruptcy law firm of Law Office of Daniel G. Shay, you can discuss your financial worries and possible solutions in private with a knowledgeable bankruptcy lawyer. We focus almost exclusively on bankruptcy work, and every client works directly with a professional attorney. Contact our office to schedule a free initial consultation.

Call 619-222-SHAY(7249) for a Free Consultation About Chapter 7 Versus Chapter 13 Bankruptcy

Chapter 7 and Chapter 13 bankruptcy each has relative advantages and disadvantages. We encourage you to review the following discussion of some — but not all — the reasons to consider filing one type of bankruptcy instead of the other.

Chapter 7 bankruptcy:

  • Completely eliminates all dischargeable debt, assuming the applicant meets the eligibility requirements of the Chapter 7 means test
  • Will not strip a second mortgage like Chapter 13, unless the owner surrenders the house
  • May give some leverage to a homeowner trying to negotiate a home loan modification, because the homeowner can show that he or she is prepared to walk away from the house otherwise

Chapter 13 bankruptcy:

  • May be used to strip a second mortgage, eliminating that debt entirely
  • Takes control over debt repayment from creditors and puts the control back into the hands of the debtor
  • Is a form of debt relief available to individuals who do not qualify for Chapter 7 bankruptcy or who do not want to give up non-exempt assets as required under Chapter 7
  • May be used to prevent foreclosure or car repossession and catch up on payments

Learn More About Chapter 7 and Chapter 13 Bankruptcy

The decision to file bankruptcy is a serious one that will affect you and your family for many years. It is often the best way to resolve a financial crisis. You do not have to make these important decisions without help. Talk to a nonjudgmental and experienced San Diego bankruptcy lawyer. Schedule a free consultation at Law Office of Daniel G. Shay today.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.