Chapter 7 vs. Chapter 13 Bankruptcy
Chapter 7
If you do not own a home or another type of real estate property, and you only have credit card debt or judgments which you cannot pay off, then you should file a Chapter 7 bankruptcy. The criteria are that you pass the disposable income test (DMI).
Call me and I will let you know if you qualify for a Chapter 7 bankruptcy.
Chapter 13
If you own a home or any other real estate property, and you are behind in your mortgage payments and/or you have a notice of default or foreclosure sale pending, then you should file a Chapter 13 Bankruptcy. Filing a Chapter 13 bankruptcy will stop any foreclosure proceedings and will allow you to make payments on your defaulted mortgage payments on a monthly basis (typically 60 months).
Frequently Asked Questions
Will I lose my car in a chapter 7 or in a Chapter 13?
If you are not delinquent on your car payments then you will not lose your car. You can continue to make your car payments in a chapter 7 or in a Chapter 13.
Can I have my IRS or FTB(State)Tax obligation to be discharged(avoided)in a chapter 7 or in a Chapter 13?
If you filed your tax returns timely, and the taxes owed are older then 3 years, then you may be able to discharge (avoid)these taxes in your Chapter 7or in your Chapter 13. Please call me for more information.