CHAPTER 7 or Chapter 13

Chapter 7 - A Path Forward

 

- Frees you from all unsecured debts such as credit cards, medical debts, utilities, phones, etc.


- If you have a house with a mortgage, or a car with a loan, you can usually  keep making payments on these debts and keep your property and possessions within reasonable limits.


- Usually, you cannot discharge state and federal taxes. You  should consult a tax attorney regarding those issues.


- Also, if you owe restitution or a fine to a court or governmental agency, those debts are not dischargeable. 


- We can discuss  your options at your initial consultation. 


- Keep in mind, bankruptcy law is structured to help you start over  with a clean slate.

Chapter 13 - Restructure Debt

 

 - Option for wage earners with a steady income to restructure debt so payments are more manageable.


UPSIDES


- May erase or delay part of your debt obligations


- May stop foreclosure on a home


- Spread affordable payments over a longer period of time.


DOWNSIDES


- May prolong the inevitable


- Must make monthly payments to a trustee for 3-5 years


- May have to pay back a portion of general unsecured debts

Contact David L. Hagan

1303 East Grand Avenue, Suite 135

Arroyo Grande, CA 93420

(805) 474-4000

lawprofessional@charter.net