Chapter 7 and Chapter 13 Bankruptcy

Consumer Debt Relief Protection

If concerned about mounting credit card and other consumer debts, understand that many people still qualify for Chapter 13 bankruptcy under the new bankruptcy law. Depending upon your economic status, you may obtain consumer bankruptcy protection under either Chapter 13 or Chapter 7. We represents consumers living in and around the cities of Long Beach and Los Angeles, seeking to stop creditor harassment and get out of debt.

Types of Consumer Bankruptcy Protection

Chapter 7 Bankruptcy: Under Chapter 7 bankruptcy, you discharge all unsecured debts (credit cards, medical debt, debts not tied to any specific property) by liquidating your personal assets that have value exceeding an available exemption. This plan is especially attractive for people with modest incomes, who lack any significant personal property. You do run the risk of losing property in order to pay off your creditors.

Chapter 13 Bankruptcy: If you fear losing significant personal property under Chapter 7 bankruptcy, you might consider Chapter 13 bankruptcy. Working with the court under Chapter 13, you reorganize your consumer debt. This important plan will stop home foreclosure, car repossession, and any other creditor collection proceeding. To qualify for Chapter 13 bankruptcy, it must be feasible to reorganize your debts. You must act in good faith and have disposable income above your necessary living expenses.

Credit Counseling Requirements

Under the new bankruptcy law, consumers seeking Chapter 7 or Chapter 13 bankruptcy must take part in credit counseling. Under this new requirement, you must meet with a credit counselor before bankruptcy proceedings can be complete. After your bankruptcy, you must complete a follow-up credit counseling session.