Chapter 13 vs chapter 7 bankruptcy Law

1. CHAPTER 13 VS CHAPTER 7

2. Securing a loan is tricky but maintaining a healthy credit report after getting it can be trickier. Oftentimes, a borrower takes a loan from a lender when they need to arrange for a large amount of money in quick time. They pay a certain part of the principal along with the interest on it every month until they pay off the borrowed amount of money. If a borrower fails to honor the agreement for one to two months, a fine is imposed on them for the duration. Usually, it adds up to the payment for the third month. What happens when they fail to honor it for more than three consecutive months? It leads to a double whammy on the part of a borrower: serious debt with legal consequences.

3. Chapter 7 bankruptcy vs. Chapter 13 bankruptcy laws  Chapter 7 bankruptcy is otherwise called liquidation bankruptcy. Business entities, as well as individuals, can file it. As soon as this bankruptcy is filed, a trustee takes over the personal property of a borrower and sells it to release the payments of their debtors. While there are some exemptions for one’s personal property, it is imperative to follow some state-wise requirements. Some states in the US allow one to choose between federal and state guidelines, others only allow state-level exemptions.

4. A debt settlement attorney in Los Angeles files this bankruptcy for those who live in rented homes. It is for individuals with a limited income which is not sufficient enough to cover the whole or a certain part of the borrowed amount of money. Technically, the household income of an individual must be below the median level of their state to be eligible for filing this bankruptcy.

5. By filing a Chapter 13 bankruptcy, one can prevent the sale of one’s assets. It generally leads to a repayment plan which is approved by a court. Debtors generally retain all property but they need to pay an amount equivalent to non-exempt assets to unsecured creditors. As regards the duration, it may range between three and five years. Zone-specific attorneys, such as a Chapter 13 bankruptcy attorney in Woodland Hills, would be able to provide detailed information about the requirements and procedures in this regard.

6. Seek legal help from a certified attorney for filing Chapter 7 or Chapter 13 bankruptcy Legal cases are tricky by nature. So far as a case involving bankruptcy goes, there can be far too many details to take into consideration. An attorney who deals with the cases of this nature would know how to overcome the concerned legal challenges.   Chapter 7 bankruptcy and Chapter 13 bankruptcy are the common programs for minimizing the burden of debt on borrowers. For legal assistance in cases related to bankruptcy in Los Angeles, your best bet is to reach out to an attorney concerning the type of bankruptcy you wish to file.

7. For filing Chapter 7 bankruptcy, you need to get in touch with a Chapter 7 bankruptcy attorney in Los Angeles. Likewise, you need to get in touch with a Chapter 13 bankruptcy attorney in Los Angeles for filing Chapter 13 bankruptcy.   An experienced debt settlement attorney in Los Angeles can bail you out of trouble in either case.  For cases relating to foreclosure or debt relief in Ventura County, your best bet is to get legal help from a foreclosure attorney in Ventura, to close a loan at a previous date.

8. 8054927045