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What is the Difference between Chapter 7 & Chapter 13 Bankruptcy?

Do I have to repay my creditors?

Chapter 7 Bankruptcy: no repayment to creditors
Chapter 13 Bankruptcy: repayment plan to creditors because of at least one of the following reasons: your income is too high; you have a lot of assets that you want to keep; your last bankruptcy was filed too recently but you need to file another bankruptcy case because of overwhelming debts. The repayment plan is between 3 to 5 years and most of the time you are paying back only a fraction of your debt. Sometimes as low as 1% depending on the case. The unsecured, dischargeable debt that are not required to be paid back will be eliminated. Examples of unsecured, dischargeable debts are credit cards, medical bills, unsecured personal loans, and deficiency from repossessions and foreclosures. Priority debts like recent taxes and backed child support are required to be paid back in your Chapter 13 repayment plan. Call an Experienced Bankruptcy Attorney at the phone numbers listed above for more details.

Can I save my house from foreclosure?

Chapter 7 Bankruptcy: It can only postpone foreclosure. It will not save your house from foreclosure.
Chapter 13 Bankruptcy: It can save your house from foreclosure provided that you catch up on the mortgage arrears within 60 months and continue making the contract monthly mortgage payments.

Can I strip off my second mortgage or equity line of credit on my house or rental house?

Chapter 7 Bankruptcy: No!
Chapter 13 Bankruptcy: Yes but with conditions. Call an Experienced Bankruptcy Attorney at the phone numbers listed above for more details.

I filed a Chapter 7 Bankruptcy case at least 4 years ago (but less than 8 years ago) and got a Discharge. Can I file another Bankruptcy case and receive a Discharge of Debts?

Chapter 7 Bankruptcy: No. You must wait at least 8 years since the date that you last filed your Chapter 7 Bankruptcy before you can file another Chapter 7 Bankruptcy.
Chapter 13 Bankruptcy: most likely you would be able to qualify for a Chapter 13 Bankruptcy Discharge depending on the facts of your case. Some Debts cannot be discharged or eliminated. Call an Experienced Bankruptcy Attorney at the phone numbers listed above for more information.

I filed a Chapter 13 Bankruptcy case at least 2 years ago (but less than 6 years ago) and got a Discharge. Can I file another Bankruptcy case and receive a Discharge of Debts?

Chapter 7 Bankruptcy: No.
Chapter 13 Bankruptcy: most likely you would be able to qualify for a Chapter 13 Bankruptcy Discharge depending on the facts of your case. Some Debts cannot be discharged or eliminated. Call an Experienced Bankruptcy Attorney at the phone numbers listed above for more information.

I filed a Bankruptcy case but it was dismissed. Can I file another Bankruptcy case and receive a Discharge of Debts?

Chapter 7 Bankruptcy:  Maybe. It depends on why your case was dismissed and whether you met the qualifications.
Chapter 13 Bankruptcy:  Maybe. It depends on why your case was dismissed and whether you met the qualifications.

Can I save my car from repossession?

Chapter 7 Bankruptcy: it can only postpone car repossession.
Chapter 13 Bankruptcy: Yes, through a repayment plan to the car lender. Amount of payment to car lender will vary on a case by case basis. In some cases, the principal balance of the car loan can be reduced to the retail value of the car and the interests rates can be reduced. Moreover, the balance of the car loan can be stretched out up to 60 months. All of this can reduce your car payments so that it becomes smaller and more manageable. Call today to speak to an Experienced Bankruptcy Lawyer for more details and other benefits of Bankruptcy.

My car was just repossessed. Can I get my car back through Bankruptcy?

Chapter 7 Bankruptcy: No.
Chapter 13 Bankruptcy: Yes but you must act quickly! There is a deadline to file your case. If your car was repossessed and you want to get it back you must filed your Chapter 13 Bankruptcy case right away or else you will lose your car forever. There are other conditions that you must satisfy and factors that you should also considered. Call an Experienced Bankruptcy Attorney at the phone numbers listed above for more details.

Can a Sole Proprietor keep all business assets and continue business operation through Bankruptcy?

Chapter 7 Bankruptcy: Warning! Chapter 7 Bankruptcy is “Liquidation”. Meaning, if you have business assets and other personal assets valued above what is allowed under the California Exemptions, the Bankruptcy Trustee can liquidate some of your assets. Moreover, a Bankruptcy Trustee can interfere with your business operation.
Chapter 13 Bankruptcy: YES because Chapter 13 Bankruptcy is “Reorganization”. Instead of a Bankruptcy Trustee liquidating assets that are not protected by the California Exemptions statutes, you can repay the amount of assets that is above what is allowed under the California Exemptions in the Chapter 13 repayment plan. The amount you pay in your Chapter 13 repayment plan can be less than what you owe your creditors. Moreover, the Bankruptcy Trustee will NOT interfere with your business operation. Under Chapter 13 Bankruptcy, you are operating your business under bankruptcy protection, stopping creditors’ harassment and lawsuits. Call to speak to an Experienced Bankruptcy Lawyer for more details.

Can I stop wage garnishment?

Chapter 7 Bankruptcy: yes and the debt will be eliminated if it is an unsecured, dischargeable debt. However, some garnishment cannot be stop or eliminated like backed child support and recent taxes, which are not dischargeable debts. Call for details.
Chapter 13 Bankruptcy: yes and the debt will be eliminated if it is an unsecured, dischargeable debt. Garnishments like back child support and recent taxes can be stopped but they have to be repaid through a Chapter 13 repayment plan within 60 months. Sometimes, stretching out the payments of nondischargeable debts like backed child support and recent taxes up to 60 months can make the payment smaller and manageable.