Bankruptcy

Chapter 7 is the most common and popular kind of bankruptcy. It is the easiest and least expensive way for people to get a fresh start. In Chapter 7, most of the unsecured debts are dischargeable, meaning that they can be wiped out through the Chapter 7 filing. These debts include, but not limited to, credit cards, medical bills, repossessions, judgments, or personal loans. While Bankruptcy Code lists certain types of debts that are non-dischargeable such as student loans. Moreover, Chapter 7 will allow the debtor to keep certain “exempt” properties, but a trustee will be assigned to liquidate the debtor’s remaining assets and use the proceeds of such assets to pay creditors. The whole Chapter 7 bankruptcy process takes about four to six months.

Chapter 13, an alternative way of bankruptcy, is a reorganization of debts. It enables individuals with regular income to keep their properties and develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years, depending on the type of debt and income. Chapter 13 bankruptcy isn’t for everyone. Because Chapter 13 requires you to use your income to repay some or all of your debt, you’ll have to prove to the court that you can afford to meet your payment obligations. If your income is irregular or too low, the court might not allow you to file for Chapter 13. If your total debt burden is too high, you are also ineligible.

Bankruptcy filing can be a complicated process. But with an experienced attorney and a right team backing you, it can be managed. Here at Law Offices of Victor Wu, we have over 25 years of experience in representing clients in Bankruptcy cases. We will provide a free pre-filing consultation to explain the bankruptcy process and your legal rights to you. We will also provide a free evaluation find out the best option for you to proceed with your bankruptcy. To schedule a free consultation, either in person or by telephone, please contact us at 714-531-4411 or by email info@vicwulaw.com.