Chapter 7 vs. Chapter 13 Bankruptcy: What's the Difference?
Every client in my office is my most important client.
Contact the Law Offices of Randy Lee Bumgarner now at 405-557-7800 for friendly, personalized legal services.
If you are falling behind on your monthly payments or having trouble making ends meet, I understand how scared you must feel. In today's tough economic climate, more and more people are turning to bankruptcy protection as a way to make a fresh financial start.
I am attorney Randy Lee Bumgarner, and I am dedicated to providing clients with friendly, personalized legal services. I have been practicing law for more than 25 years and will stand by your side throughout the entire bankruptcy process. Contact the Law Offices of Randy Lee Bumgarner for a free initial consultation. I have office in and Oklahoma City.
Which Bankruptcy Protection Plan Is Right for You?
If you are struggling with debt, there are two bankruptcy options available to you: Chapter 7 bankruptcy or Chapter 13 bankruptcy.
It is important to know that Chapter 7 bankruptcy typically involves some level of asset liquidation. However, certain assets are exempt from liquidation, including your car, your family home, and certain household possessions. At the end of Chapter 7 bankruptcy, all non-exempt assets will be liquidated and your debt is erased. You are then free to begin rebuilding your credit and make a fresh financial start.
In order to qualify for Chapter 7 bankruptcy, you will need to pass a means test. I will take the time to explain the qualification process in great detail and help determine whether you qualify.
Chapter 13 bankruptcy, also known as wage earners bankruptcy, involves the creation of a debt settlement plan that enables you to pay off some or all of your debt within three to five years. In order to qualify, you must have no more than $1,010,650 in secured debt (i.e., a mortgage or a car loan) and $336,900 in unsecured debt (i.e., medical expenses or credit cards).
In addition to emerging debt-free at the end of the repayment plan, Chapter 13 bankruptcy allows you to keep your home, cars and property.
Please note, filing for Chapter 13 bankruptcy puts an automatic stay or stop on foreclosure proceedings.
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For a free initial consultation with an experienced bankruptcy lawyer, contact me today.
