22 September ,2014 By Admin Category:Bankruptcy

Have you reached the end of your rope trying to get ahead financially only to fall farther behind? With the economy as it’s been the past decade or so, you’re not alone. If bankruptcy is an option you’ve considered, it’s important that you know all your rights and what to expect. Here is a general overview of Chapter 7 and Chapter 13 Bankruptcy as per California law.

Chapter 7 Bankruptcy?

When you file a Chapter 7 bankruptcy, you essentially get a fresh financial start but you may have some or all of your assets sold unless they’re exempt under the law. Once an asset is sold, the money for the exempt asset is given to you and the rest goes to creditors. You need an aggressive and experience lawyer to help protect your rights and your assets from these creditors by finding exemptions to protect them in your bankruptcy case. Certain debts like child support, student loans and alimony cannot be discharged. In many cases, all of your other debts can be eliminated in a Chapter 7 bankruptcy.

If you sign a Reaffirmation Agreement, you are permitted to keep your home or car even if you owe money on it. If you choose to keep these assets, you cannot file bankruptcy on them for another eight years. You’ll need to continue making payments on the reaffirmed assets until the loans are current before the Reaffirmation Agreement can go into effect.

Chapter 13 Bankruptcy?

When you file a Chapter 13 bankruptcy, you can prevent a financial catastrophe by agreeing to a pre-approved payment plan. You can also use a Chapter 13 to catch up on past due debts and reduce other debts that fit your budget. However, generally these debts must be paid within the five-year period. The amount you will have to pay is based on your disposable income.

Consumers generally file a Chapter 13 when they want to hang on to their home or other secured assets but do not qualify for a Chapter 7 case because their income is too high or their assets cannot be property protected with exemptions.  It is important to speak to an experience bankruptcy lawyer to make sure you are filing the right bankruptcy and with the best re-repayment plan possible.

Advantages of Chapter 7 Bankruptcy

• You can have a clean slate in less than six months and keep secured assets.
• Can sign a Reaffirmation Agreement to keep your home.
• You’re protected immediately from wage garnishments and debt collectors.• All post-bankruptcy income is yours to keep.
• There is no minimum debt required for Chapter 7 bankruptcy.

Advantages of Chapter 13 Bankruptcy

• You’ll be able to keep all of your property and be protected from wage garnishment and creditor harassment.
• You may have your debt substantially reduced as well as discharged.
• If you do choose to repay your debts, you’ll avoid foreclosure and harassment.
• You can file Chapter 13 bankruptcy more than once and at any time.
• You can decide how to handle certain creditors and how to pay each one.

Before you take that next big step, contact Mr. Karapetian, an intelligent, aggressive and experienced bankruptcy lawyer in Glendale, CA who understands what you’re going through and is committed to help. Mr. Karapetian will go over your financial situation with you and will offer you the best options for your particular case. Give Mr. Karapetian a call today!