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Choosing Between Chapter 7 and Chapter 13 Bankruptcy in LA County

Although you have probably heard the terms "Chapter 7 bankruptcy" and "Chapter 13 bankruptcy," you may still be wondering which one is the better choice for you. At the Law Offices Of Hagen & Hagen, we help individuals and families in LA County and throughout Southern California to answer this question.

For Which Chapter Do You Qualify?

Many times, the type of bankruptcy petition that is right for you depends upon which one you qualify for. In order to be eligible to file for Chapter 7, you must meet certain criteria. One of these is the financial means test. If you earn too much to qualify for Chapter 7, however, you will still most likely be eligible to file for Chapter 13 instead.

Which Best Meets Your Needs?

Even if you qualify for Chapter 7, you may still choose to file for Chapter 13 instead. A few reasons people choose Chapter 13 over Chapter 7 include the ability to:

  • Keep more property. Because Chapter 7 may result in a bankruptcy trustee liquidating all nonexempt assets, Chapter 13 is often a better choice for those who own substantial assets.
  • Force mortgage companies to give you time to bring your mortgage current. In Chapter 13, you can compel your mortgage company in to giving you up to five years to bring your payments current.
  • Eliminate second mortgages. Through Chapter 13 bankruptcy, many people are able to strip off second, junior home mortgages and other liens.
  • Pay off back taxes. Under Chapter 7, you cannot discharge recent IRS and/or state tax debts. However, Chapter 13 allows you to create an interest-free and penalty-free repayment plan through the Bankruptcy Court.
  • Repay some of your debts. Some people simply feel bad about not repaying what they owe. Chapter 13 is an excellent way to give at least some money back to your creditors.

Consult A San Fernando Valley Debt Consolidation And Liquidation Attorney

Choosing between Chapter 7 and Chapter 13 bankruptcy in LA County is an important decision, so talk to a lawyer with experience. Arrange a no charge in-person or by-phone initial consultation with the Law Offices Of Hagen & Hagen by calling us at 818-305-6452 or by contacting us online.

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