Consult With a Bankruptcy Attorney in Orange County for Options
As an Orange County bankruptcy attorney, we understand that there is no one 
size fits all bankruptcy solution. How you decide to file, the type of filing that you do and what you include in it, should all be based on your family’s personal financial situation. In order to determine how best to proceed, we recommend that you schedule a consultation to discuss your goals and what you would like to accomplish with the process.
There are two main types of personal bankruptcy filing: a Chapter 7 and a Chapter 13. They are incredibly different, so you need to think through whether or not you want to wipe out your debts entirely or try to settle them by making at least a partial payment to your creditors. For many people, it is simply impossible to continue making payments and a Chapter 7 is the only viable option. For others, they want to pay back their debt but cannot afford to do so at the level of what they owe and the monthly payment demanded by creditors. In this case, a Chapter 13 would be a good solution. Here is what you should know about the differences.
Chapter 7 Bankruptcy
As an Orange County bankruptcy attorney, a lot of our clients file for a Chapter 7 because they want a fresh start and would like to get out from under all of their debts. In order to qualify for this type of filing, you need to be within the income guidelines for eligibility. This is all based on the county where you live and the overall size of your family. Fortunately, family size is taken into consideration since it is more expensive to provide for a family of six than a family of two. We can go over your family size and let you know if you meet the income guidelines in order to qualify. If you do, we will gather your income documentation in order to prove it.
In this type of bankruptcy filing, all of your eligible debts can be eliminated. If you want to keep your home, you must continue to make payments on it as agreed or the bank could still foreclose. The same is true for your car. However, all of your unsecured debts can be eliminated. Things like tax debts and student loans will remain.
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy filing, we will work with you to create a repayment plan. This typically involves paying all of your creditors something, but less than the full amount of what you owe. We will propose a plan that demonstrates what your monthly expenses are and what you have remaining to pay towards debt. This will determine what the monthly payment will be and how it will be distributed to creditors. After several years, the bankruptcy will be discharged and whatever debt is remaining will be eliminated. As with a Chapter 7, you must continue to may your mortgage if you want to keep your house.
To learn more or to discuss this in further detail call our office to speak with an Orange County bankruptcy attorney.