Which One is Right for You?
There are essentially 2 types of bankruptcy that you can file for, Chapter 7 and Chapter 13. There are a couple of other types, but the vast majority of bankruptcies are either Chapter 7 or Chapter 13, so those are the two I’ll focus on today.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is designed for people with very little disposable income. It is often used by low income individuals for various reasons. Chapter 7 bankruptcy is also known as “liquidation bankruptcy” and it clears out unsecured debt. However, all of your nonexempt assets will be sold to help pay off your debt. Usually people with a lot of assets will not choose this route, usually it is lower income individuals who do not own any nonexempt property.
Chapter 13 Bankruptcy
You may have to file for a Chapter 13, or a reorganization bankruptcy, if you make too much to qualify for a Chapter 7 bankruptcy. Chapter 13 bankruptcy is for individuals who are able to pay back at least some of their debt.
A payment plan is set up based on your regular income. Many people prefer Chapter 13 Bankruptcy because it allows you to catch up on missed mortgages. I personally had to file for a Chapter 13 bankruptcy because of missed mortgages and I was able to catch up and keep my house.
After being foreclosed on multiple times and not making the payments, they were willing to work with me when I filed for bankruptcy and now I’m back on the right track. And I couldn’t have done any of it without BLC Law Center. You can learn a little bit more about them at https://www.blclawcenter.com.
BLC Law Center is a group of bankruptcy attorney San Diego has had for years. They were extremely helpful right from the very start and I am very grateful for everything they have done. When I went to them I was so overwhelmed and I never thought I’d be able to get out of debt. But, they were able to help me and actually taught me along the way too.
They sat me down and talked about all of my legal options and explained that a Chapter 13 was probably the best choice for me. Once I decided to move forward with the Chapter 13, they pretty much did it all for me.
I couldn’t even imagine how hard it would have been for me to file by myself. I got lost in all of their legal jargon more than once, and I know without them I would have been totally screwed. Not only did they help me file for bankruptcy, they helped me get my freedom back as well. They finally got creditors to stop harassing me, and I can say it’s been like a breath of fresh air.
Everyone at BLC is so nice and understanding and I never felt like I was being judged for my poor decisions. The entire time, I felt like they really wanted to help me, and that’s a great feeling to have. Although bankruptcy was my absolutely last choice, it was extremely helpful and I’m glad I did it. It sounds a lot worse than it is and people end up getting the wrong idea about it.
If you love in southern California, there’s no one who can do it better. But, if you do not live in the southern California area, you should do some research on bankruptcy attorneys in your area. There are great attorneys all over America that are willing to help you get back on your feet.