Chapter 7 or Chapter 13 Bankruptcy know the Difference

If someone is facing bankruptcy then he or she can file for bankruptcy to get out of the debt. There are many ways of bankruptcy filing depending on the process. These ways of getting out of bankruptcy are named as chapters. Chapter 7 and chapter 13 are two of those ways. Let me tell you about the differences between them. However, before understanding the differences, you must know that both the chapters serve the same goal of giving you relief from a portion or from the entire debts. Their approaches are different and that’s what I will explain to you now.

1. Repayment
The repayment methods are the biggest difference of chapter 7 and chapter 13. The chapter 13 is a debt repayment plan set by a court order. For this plan, a part of your debt will be paid to the lender. The chapter 7 is entirely different on this matter as there is no need to repay any debt. This is a plan to eliminate some of your debts. So you can surely see that with chapter 7 and chapter 13, you have different options for saving your entire or part of the debt.


2. Length of the process
The filing process of the bankruptcy takes some time. The time differs with the type of bankruptcy filing. The lengths of the processes are different for chapter 7 and chapter 13 too. The chapter 7 bankruptcy filing takes rather shorter time. It settles the matters within 6 months from the filing date. On the other hand, chapter 13 is a much longer process. It, at times, takes 5 years to settle the case.

3. Asset and liquidation
The chapter 13 bankruptcy helps you to protect your assets. The chapter 13 procedure can help you to save your assets like home and car that are under foreclosure. Chapter 13 is not a bankruptcy of liquidation and that’s why you can save some of your assets. The chapter 7 bankruptcy is a liquidation bankruptcy and that’s how the court can liquidate your assets if they are not protected. The state can protect a portion of your car or home equity.

4. Repayment method
The chapter 13 and chapter 7 have different debt recovery method. In chapter 13 a repayment plan will be made for you and will be followed. In chapter 7 bankruptcy, your properties will be sold to repay a portion of your debt and the rest of the debt will be discharged for you.

Sacramento, California based bankruptcy attorney Kristy Hernandez received her B.A. in Political Science from University of California at Davis She received her Sacramento bankruptcy attorney for handling legal services of bankruptcy, Home loan modification, Foreclosure Defense, San Jose Tenant Eviction and also in Sacramento, Citrus Heights Bankruptcy Lawyer, and the surrounding cities.

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Before You Pursue Bankruptcy You Should Get The Facts About Advantages, Dangers

Bankruptcy may be a possible response to your financial problems and you’re maybe wondering how you could begin to get more information about it. Filing for bankruptcy is a measure that should be undertaken only when you are convinced that it’s the most beneficial alternative for you to take.

You won’t be ostracized for life if you choose to file for bankruptcy, but be forewarned that it’s no picnic, either. The first step for those who decide to file is mandatory counseling sessions with a government-appointed agency. You and the counselor will study your financial situation to decide whether or not filing is the best move for you.

Your counselor may find, after looking at all the facts, that you’re better off not filing for bankruptcy and setting up a realistic schedule to pay back the money you owe. Maybe you believe that you’d be wasting your time talking to a counselor, but it’s a step you must take and one in which you might learn something.

You don’t necessarily have to adopt the repayment schedule the counselor suggests, if that turns out to be the case, but you’ll receive it anyway. You may opt to ignore the advice you receive from the counselor, but you must let the judge who hears your case review it.

You’ll have another appointment with a counselor once your hearing gets under way, where finance management will be the subject. If you’re presented with a favorable outcome at the close of your hearing, you’ll be liberated from your debts.

While you’ll have a number of responsibilities and requirements to complete, so will the attorney representing you in the case. Attorneys must put their reputations at stake by assuring the court that the material you present in your hearing is reliable and factual.

L.A. residents declaring bankruptcy might engage a Woodland Hills bankruptcy attorney who would be responsible for the veracity of the information submitted. A Encino bankruptcy attorney can elucidate to you such difficult issues as how much wealth a client declaring bankruptcy will be allowed to keep.

Your lawyer can update you about the ways that the legal system will measure your personal worth. If you own a house or land, a lawyer can assess whether or not you stand to lose what you own in the sequence of a bankruptcy hearing.

Before you make one of the most weighty decisions of your life, be sure to connect with sound legal advice, because it can save you a great deal of difficulty later on.

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Routes For Preventing Going Insolvent

Lots of Americans are facing bankruptcy on a monthly basis. Make sure you have taken all steps possible before you actually file for bankruptcy.

One of the quickest, yet often overlooked first lines of defense is to get rid of your credit cards. Sometimes it might be crucial to hold on to a card in case of emergencies. Attempt not to go over an $800 limit on this one card. There is no need to keep more than one card per household. These days, most companies will set you up with online automated billing. Start using cash for all of your other daily needs. This not only limits what you can buy, it also shows you exactly what you spend your money on.

Another way to cut spending is by putting a stop to satellite TV. You can watch most shows on the net for free or they are available for instant streaming. You might try having a no TV night and instead play board games with the kids. If you are single, try turning off various distractions and sit down with a good story. You can pick anything from a Russian classic to a new comic book.

If you are at your wit’s end and you keep getting collection notices you may want to make an appointment with a Woodland Hills bankruptcy attorney to see what your options are. Some people unfortunately use this as the last resort instead of seeking out a lawyer before things get too bad. Before seeing a Thousand Oaks bankruptcy attorney, check their credentials and get references. Never blindly pick a Woodland Hills bankruptcy attorney without checking them out. A bit of questioning can go a long way to prevent problems.


Once you have seen your Van Nuys bankruptcy attorney, converse with your friend or spouse about your options. Know all the pros and cons of filing for chapter seven and make sure you can handle them all. Also be sure to discuss every detail with your family and maybe a few close friends. Don’t be ashamed; instead, be proud of yourself for knowing that you are making a good decision before matters get too much out of hand.

Now you won’t be all by yourself in these hard times. The reality of the job market today makes it difficult to save for a future. Remember that you are just human and you aren’t in this by yourself.

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Bankruptcy advice and help going bankrupt

We provide some simple bankruptcy advice and help if you are thinking about declaring yourself bankrupt.

If you hear or see the word bankruptcy it is normally enough to send waves of panic through your whole body.

This is because if someone suggests declaring yourself bankrupt the image it conjures up is often one of failure and losing everything.

However once you find out the real facts about bankruptcy, you may discover that it is the best way to deal with your debts and turns out to be a real life saver.

What is bankruptcy?

Declaring yourself bankrupt means that you make an application to the court to say that you are unable to repay the debt that you owe.

Once the court declares you bankrupt all of your unsecured debts are taken away from you straight away. Your creditors must then stop all their debt collection actions against you. Part of the bankruptcy procedures includes giving information about your income and living expenses. Based on this if you can afford to do so you will be expected to make a payment towards your debts for up to three years.

One of the major worries that people have about going bankrupt is that they think they will have to sell everything they own. This is nonsense. You are allowed to keep all of your normal household goods. However it is true that if you own an expensive car you might have to sell or downsize.

Many people also worry about losing their home. If there is equity in your property declaring yourself bankrupt may put the property at risk. However if you have little or no equity it is highly likely that there will be no affect on your home and you will be able to keep it.

Declaring yourself bankrupt

If you want to declare yourself bankrupt you will need to follow three main bankruptcy procedures.

The first bankruptcy procedure you will need to go through is the completion of the necessary application forms.

It is very important that you complete the bankruptcy application forms correctly as the information you give will form the basis of decisions about whether you are asked to make a monthly payment towards your debts and what happens to assets such as you house.


Once your forms are properly completed the second bankruptcy procedure involves you taking them to your local country court (or the Royal Courts of Justice if you live in London).

You should go to court in person. You will be asked to pay a court fee and may have to have a brief private meeting with a District Judge. If you have completed your forms correctly you will be declared bankrupt on the day.

The third bankruptcy procedure is a meeting with the official receiver. The meeting will normally take place on the telephone a week or so after you have been declared bankrupt.

This meeting is important as the official receiver will want to make sure they understand the information you included in your application form. It is the official receiver who makes the decisions about what will happen to your car and if you will have to make a monthly payment, not the court judge.

Help going bankrupt

For many people, bankruptcy can be a very effective way of getting out of debt and will result in the majority of their debt being written off.

Bankruptcy is often ideal if you are not a home owner. However even if you do own your own home it you may well be able to keep your house particularly if there is little or no equity in it.

However to understand exactly what bankruptcy will mean for you it is important to get proper bankruptcy advice.

It is also very important that you carry out the bankruptcy procedure of completing your applications forms correctly. As such if you are at all worried about this you should get bankruptcy help from an expert.

Following this simple bankruptcy advice may well result in you making a sensible decision to declare yourself bankrupt rather than struggling to repay your debt for many years using a different debt management solution.

James Falla is a debt management solutions expert and author. He has fourteen years of experience of helping people with the process of declaring themselves bankrupt. In 2004 James co founded Thomas Charles a specialist debt management solutions company where he personally helped hundreds of clients declare bankruptcy. James is now the managing director of and senior debt advisor for Wilmott Turner Financial Services which operates debt solution websites such as http://www.beatmydebt.com/

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Bankruptcy Is More Typical Than You Think

Filing for bankruptcy can be a stressful, life-shaping decision.  With the rough economic years our country has had, bankruptcy has become more normal than ever before.  There are a number of reasons that consumers opt to file for bankruptcy.  You are not alone if this is a route that you are deliberating.  Lowering or eliminating big medical bills, car repossessions, and credit card debt are a few of the issues bankruptcy can do.  These types of difficulties are common financial problems that many people share.

The recent loss of employment is the most standard reason that people are forced to file for bankruptcy. Most homes survive today on a two salary income. When one person loses their job, it can become tough to pay for a mortgage, cars, credit and household bills.  A very normal occurrence is the loss of medical insurance with your job.  This can cause you a large amount of problems and debt, as medical charges can add up quickly.  Sometimes medical debt isn’t something you plan for, and proclaiming Chapter 7 can help you greatly reduce this debt.



Residence foreclosures and auto repossessions are another common reason most consumers file for bankruptcy.  Chapter 13 helps you end your home foreclosure, and allows you to set up a new payment plan with your bank.  Bankruptcy does not mean you get out of mortgage payments, though.  If your car is repossessed, filing for bankruptcy quick enough can force them to return the vehicle directly to you.  Consolidate any late payments while restructuring your payment program through Chapter 13.  You most likely won’t deal personally with your credit company, as an appointed trustee will do this for you.

For most consumers, credit card debt is a massive problem. Your credit card debt can be completely cleared out by claiming bankruptcy.  More importantly, declaring can get unethical, harassing creditors off your back.  Unethical means are often used by credit collectors to try and get payment from you.  You may also find some collectors trying to get more than what you really owe them.  You will need the aid of a lawyer to handle some of these issues. You can get an experienced Woodland Hills bankruptcy attorney or Van Nuys bankruptcy attorney in Southern California if you need this kind of assistance.

Bankruptcy is a huge decision to make. It can alter your life immensely in a number of ways.  With Chapter 7 and Chapter 13, you get a variety of options and programs.  With the help of a lawyer, you can decide which one is best for you.  You can rebuild your credit more simply today as bankruptcy becomes more normal.  You will see how fast you can get credit card offers mailed to you.  Although you do not want to get into trouble again, making some smart choices will have your credit back in good standing in just a few short years.

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Filing Personal Bankruptcy Tips that One Should Have

Are you currently taking into consideration filing for personal bankruptcy? In some cases it is a smart move. Even so, before taking the plunge, you'll want to know several crucial pieces of facts. This write-up covers essential information you will need before you take into consideration bankruptcy.

Initially, you must be sure that there's no other way out of your situation. Think about any doable way it is easy to keep away from filing for personal bankruptcy. Could you refinance, get cash from relatives, sell some of one's possessions, and so on.

I strongly recommend you don't make an effort to do this yourself. Individuals try filing personal bankruptcy to save cash but it will wind up costing you way more in the long run. And it will be far a lot more stressful attempting to do all of the paperwork yourself. Make a mistake in any part of the procedure can result in a nightmare.

Be ready to go to credit counselling. It is absolutely mandatory inside the United States for people filing for bankruptcy. It helps when it is actually time for the judge to evaluate your claim so it is actually a fantastic thing. You are going to have to go to counselling for as much as 6 months.

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Bankruptcy laws are highly complicated. There's no doubt that you will want to hire a lawyer. Do not just use your household lawyer. You need 1 that specializes in bankruptcies. And make sure that they know the laws for your state as just about every state has unique laws. So stay away from lawyers that are new within the area. Ask around for recommended lawyers should you be okay with letting individuals know about your scenario.

Did you know that you will discover about 8 different kinds of bankruptcies? Each will have particularly diverse outcomes. This can be a quite necessary step. You'll need a lawyer which will go for the perfect feasible outcome for you. Make certain they clarify to you what's involved with each kind of bankruptcy and tell you why they need to proceed using the one they picked out.

You need to know what to expect when it really is done with. Do you get to preserve something, how much time before you can borrow cash once again, will it be inside the local newspaper, etc. Also discover how much it's going to cost you for legal fees and application fees.

Trust me. Filing personal bankruptcy needs to be accomplished by a skilled lawyer. When done appropriately it's going to end up with a stressful financial circumstance gone from your life. Perform this incorrectly and you'll be remorseful.

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Getting Out Of A Bad Economy In Los Angeles

Dealing with the current downed economy in Los Angeles makes it tough to repair.  Every time someone gets back on track, there is yet another that loses track and begins having financial difficulty.  It makes it far worse that there are too few Los Angeles jobs to support the number of people in the area, too.  However, there is hope for people having problems in other respects.

Budgeting income is necessary and can even completely fix debt issues.  Besides relieving stress knowing there is an end, creating a payment plan can fix most lesser personal debt issues.  Calling the credit card company or company owed debt to let them know what is happening is smart.  In order to make it less complicated to pay back, deals are frequently worked out in order to pay back the money without the huge interest on some accounts.

Debt consolidation companies are also a great idea.  Making deals with the debt holders and developing payment plans are the main services offered by these companies and they do those things in an efficient way.  This technique of repayment helps credit scores very quickly and requires no help from the United States government.  While consolidation companies might charge a small fee, many are not for profit and never charge the person money in the end.  This approach prevents one from having to give up anything purchased and will get the individual back to square one.



There is also help for those with huge debt.  In order to get rid of huge debt problems, sometimes big steps should be taken to get rid of it in order to start fresh again.  Although Bankruptcy is a significant step, with a good lawyer, the person will be able to continue to keep everything and get rid of all debt.  Although bankruptcy goes on the credit score forever, it is considerably less important after seven years.  Many people achieve great credit right after filing for bankruptcy, and thus the impact is extremely minimal even for larger car and house transactions.

To be able to file bankruptcy, one must use an individual bankruptcy attorney first.  A Woodland Hills bankruptcy attorney versus a Reseda bankruptcy attorney ought to be determined by reputation only, and location should make no difference in any way.  Most filing and problems will be done over the phone besides the initial consultation, so going to the office is not something which needs to be done often.  While most bankruptcy cases go without a problem, the person will still need to save around a thousand dollars or more for lawyer fees.  Finding the right lawyer is critical in order to make the procedure as simple and easy as possible; it's not easy when there is resistance.

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