Why Should I File a Chapter 13 Bankruptcy instead of a Chapter 7 Bankruptcy?

Some of my clients said that their friends said that Chapter 7 Bankruptcy is the best bankruptcy to file.  Not so fast.  Although a Chapter 7 Bankruptcy does not involve a payment plan, Chapter 7 Bankruptcy might not be for you.  

First, you might not qualify for Chapter 7 Bankruptcy due to high disposable income, too much assets that are not protected under the California exemptions, or you recently received a bankruptcy discharge so that you do not qualify for a Chapter 7 Bankruptcy discharge yet.

Another reason, you want a payment plan under Chapter 13 Bankruptcy restructure because you want to prevent a foreclosure by catching up on delinquent mortgage payment within 5 years.  You want to prevent wage garnishment or bank levy from creditors of nondischargeable debts like recent tax debt.

Or you own a sole proprietorship business and are afraid that a Chapter 7 Trustee will interfere with your business or worst liquidate your business if you do not have enough exemption to protect it or business assets.  Chapter 7 Trustee can sell your property if it is too valuable and cannot be protected by the California exemption.  Under such circumstances, you should consider a Chapter 13 Bankruptcy instead.

For more information, schedule a consultation with Muoi Chea, experienced Bankruptcy Attorney in Sacramento, CA serving all of Northern and Central California like Fairfield, Lodi, Vacaville, Roseville, Elk Grove, Citrus Heights, and Sacramento, CA in Bankruptcy filing.