There are two types of consumer bankruptcy. While Chapter 7 is the most common type, if you have a steady job and are still considering filing for bankruptcy, you might want to ask a San Diego bankruptcy lawyer about the possibility of filing for Chapter 13 instead.

San Diego Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a form of consumer bankruptcy that allows people with steady income to repay their debts according to a set plan. It has several advantages over Chapter 7 bankruptcy, though the process is longer, as it allows consumers to maintain greater control over their property. Under Chapter 7, the bankruptcy court can lay claim to any non-exempt property that the debtor has and use that property to repay the debtor’s creditors.

However, San Diego Chapter 13 bankruptcy is different. Under Chapter 13 bankruptcy laws a debtor’s property, for the most part, is protected from being sold to repay debts through the liquidation process. Instead, the debtor’s San Diego bankruptcy attorney works with the court to create a repayment plan that will allow the debtor to pay back the money they owe their creditors over a period of three to five years. Under a repayment plan, debts can be lowered and consolidated, making it much easier for the person filing for bankruptcy to gain control of their debt and work toward a better financial future.

Who Can File for Chapter 13 Bankruptcy in California?

San Diego Chapter 13 bankruptcy isn’t for everyone as you need to have steady income in order to qualify. A bankruptcy lawyer such as Attorney Orona can help you determine whether Chapter 13 is the best choice for your situation. If you have property that you don’t want to lose or need to pay back debts that are not dischargeable, like back taxes or student loans, a repayment plan covered by Chapter 13 bankruptcy law might be the best solution for you.

Why Choose Chapter 13 Over Chapter 7?

It may seem like Chapter 7 is a better deal than Chapter 13. After all, under Chapter 7 bankruptcy you get to have most, if not all of your unsecured debts cleared. However, before this happens all of your unsecured assets will be taken by the court and used to repay whatever you can to your creditors. This means that you could be left with very little after filing for Chapter 7.

This isn’t the case with Chapter 13 bankruptcy. If you’re financially secure enough to be able to commit to a repayment plan, you’ll be left with a cleaner credit report and you won’t lose your house or other property in the settlement through Chapter 13.

The best way to find out if Chapter 13 bankruptcy is the right choice for you is to discuss your situation with a San Diego bankruptcy attorney. Scott Orona has been helping individuals in the state of California make sense of their financial situations for over 20 years. Mr. Orona can offer you sound legal advice regarding bankruptcy law. He can help see you through the process and answer any questions that you might have along the way.

Mr. Orona offers free one hour consultations to his prospective clients. Contact his law office today by calling 619-306-7627 to get your questions about Chapter 13 answered directly.