Understanding the Differences Between Chapter 7 and 13 Bankruptcies

The two most common forms of personal bankruptcy filings are Chapter 7 and Chapter 13. While both filings can help people who have overwhelming debt, the filings have different strengths and weaknesses. At JLG Lawyers, we help our clients understand the differences between these filings so that they can choose the plan that best fits their needs.

Calling our firm is the fastest and easiest way to understand what type of bankruptcy filing you need. Our Glendale and San Francisco offices get efficient debt relief for people in the Los Angeles metropolitan area and across California. You can call our bankruptcy attorneys at 818-630-9099 to set up your free, 30-minute consultation.

Chapter 7 Bankruptcy Filings

Chapter 7 bankruptcy filings can fully discharge many types of debt. In this type of bankruptcy, the court will appoint a trustee to oversee your filing. This trustee has the power to sell your assets to pay back your debts. Generally, a trustee will not take all your property and some assets are exempt from the process.

Many types of property are exempt from repossession under a Chapter 7 bankruptcy, including:

  • Clothing, appliances, and furnishings
  • A family home
  • A personal vehicle
  • Retirement accounts

Chapter 13 Bankruptcy Filings

Chapter 13 bankruptcy filings are also called debt repayment plans because the court will create a plan that lets you repay a part of your debts over time. The debtor must have an income to reorganize debt into a more reasonable payment. These monthly debt payment plans can last from 36 to 60 months. The court will fully remove the debt once the payment plan is complete.

While filing for bankruptcy is an effective way to remove debts, there are alternatives. Our lawyers can go over your specific financial situation and help you decide what kind of debt relief plan is right for you.

Get Immediate Answers in a Free, 30-Minute Consultation

You can discuss your debts with a knowledgeable lawyer in a free, 30-minute consultation at our firm. Our proven bankruptcy lawyers can answer your questions and give you an idea of what you can expect. Call us now at 818-630-9099 or send us a message to set up your free first meeting. Se habla español.

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