There are two main types of bankruptcy, chapter 7 and chapter 13. Chapter 7 is what is known as straight bankruptcy or a “fresh start.” Upon qualification a chapter 7 will eliminate you unsecured debt in full. Most people think that you will lose your vehicle or property if you do a chapter 7 and that is completely untrue. Most of the time you can keep your secured debts and simply eliminate your unsecured debt. The court will not leave you with out residence or a vehicle. A chapter 13 is what is known as a repayment plan over a 36 to 60 month period. Dependent on the means test and your last 6 months of income you will have monthly payment to the trustee; typically how much you’re positive at the end of the month after all your normal living expenses are paid. This payment will be distributed to your creditors equally and at the end of 5 years the rest owed will be discharged or wiped clean. Chapter 13 is good for the consumer that has a high income, assets, multiple properties, etc. Now through new law we can eliminate a second mortgage entirely through a chapter 13 plan called “stripping a 2nd.”

Call today to speak with one of our trained and experienced lawyers. We will provide you with a FREE consultation in which one of our lawyers will break down your income and expenses and determine your debt to income ratio. We will assess your situation and provide you with guidance as to which route to take. Furthermore, we will run your financial numbers through the Means Test and calculate what programs if any you qualify for, and then weigh the pros and the cons of each program. Call 1-619-309-4619 to set up a FREE consultation today. You don’t have to live the rest of your life buried in debt.