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Filing for bankruptcy can be a difficult decision, but it can sometimes be the best way to get your finances back on track. If you're struggling to repay your debts and need some relief, you may want to consider filing for chapter 13 bankruptcy. In this blog post, we'll explain what chapter 13 bankruptcy is and how it works, how it differs from chapter 7 bankruptcy, and the benefits of choosing chapter 13. At Southern California Attorneys, A.P.C., we're here to help California residents with their bankruptcy matters.
Chapter 13 bankruptcy is also known as a "wage earner's plan" as it is designed for individuals with regular income who are struggling to pay their debts. The main aim is to allow the debtor to keep their property while paying creditors over time. With chapter 13 bankruptcy, you'll typically have three to five years to repay your debts.
One of the main differences between chapter 13 and chapter 7 bankruptcy is that chapter 7 is known as a liquidation bankruptcy. This means that some of your assets may be sold to pay back creditors. Chapter 13 bankruptcy, on the other hand, is known as a reorganization bankruptcy. This means that you'll get to keep your property and you'll have a repayment plan worked out with your creditors that you can afford.
One of the benefits of filing for chapter 13 bankruptcy is that it can help you save your home from foreclosure. If you're behind on your mortgage payments, filing for chapter 13 can help you catch up and keep your home. Another benefit is that it can help you get rid of some debts that cannot be discharged in chapter 7 bankruptcy, such as some tax debts.
Another advantage of chapter 13 bankruptcy is that it can stop collection activities against you. Once you file for bankruptcy, an automatic stay goes into effect. This means that creditors cannot continue with collection activities such as garnishing your wages, repossessing your property, or calling you.
At Southern California Attorneys, A.P.C., we can assist you with chapter 13 bankruptcy. We can help you determine if chapter 13 bankruptcy is the right option for you and guide you through the process. Our attorneys are here to answer any questions you may have and provide you with the support you need to get your finances back on track.
Filing for bankruptcy can be a daunting process, but it can also be a lifeline for those who are struggling with debt. If you're considering chapter 13 bankruptcy, it's important to consult with a knowledgeable attorney who can guide you through the process. At Southern California Attorneys, A.P.C., we're here to help you every step of the way. Contact us today to schedule a consultation and start your journey toward financial freedom.
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