Is It Better to File for Chapter 7 or 13?

If you’re considering filing for bankruptcy due to overwhelming debt, you may be wondering what kind to file. Two of the most important types of bankruptcy are Chapter 7 and Chapter 13.  Depending on your unique circumstances, one may be better than the other. For example, if you don’t have property that’s important to you, like a home with a mortgage, and you have extensive credit card debt that you know you’ll never pay off, Chapter 7 bankruptcy may be best for you.  But if your income is too high or if you have a home that’s about to go into foreclosure and you want to find a way to keep it, then Chapter 13 is the better choice. A bankruptcy lawyer in Petaluma, California can help you figure out which type is right for you.

Differences Between Chapter 7 and Chapter 13 Bankruptcy in Petaluma

Chapter 7 and Chapter 13 bankruptcy are two different types of bankruptcy. In Chapter 7 bankruptcy, a trustee takes over your assets and then distributes them to pay off your creditors, but you no longer owe the debts. Meanwhile, in Chapter 13, you pay off your debts over time, but may be able to keep some property, like your home. It is harder to qualify for Chapter 7 bankruptcy because your monthly income must be lower than the median for a household of your size. If it’s determined by a means test (a measure of your ability to pay off your debt over time) that your income is too high, you won’t qualify for Chapter 7 and may need to proceed with Chapter 13. A skilled Petaluma attorney, such as David P. Gardner, can help you figure out which kind you need.

Call for a Free Debt Evaluation with a Bankruptcy Attorney Today

If you are facing bankruptcy, contact the Law Offices of David P. Gardener at (707) 658-4460 for a free debt evaluation.  David P. Gardner is an expert bankruptcy attorney in Petaluma, California and will work to get you where you need to go.

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