Rancho Cucamonga Bankruptcy Lawyers
Legal Guidance for Chapter 7 & 13 Filings
At Chung & Ignacio, we want to show people that bankruptcy is not the dark cloud that most assume it to be. When done correctly and under the guidance of our Rancho Cucamonga bankruptcy attorneys, bankruptcy can be an effective, relatively stress-free way of eliminating debts that otherwise could not be reasonably paid. Best of all, many filings conclude without risking significant portions of the filer’s assets and finances to repossession or collection.
If you have been thinking that bankruptcy might be able to help you shake your debt and get your finances back on track, then we encourage you to call us at (909) 726-7112 at your first opportunity. We can review your finances, income, and debt to help determine if bankruptcy will be right for you, including what chapter would be the most beneficial. Our law firm focuses primarily on Chapter 7 and Chapter 13 bankruptcy filings.
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Who Should Use Chapter 7?
Are you feeling completely overwhelmed by your debt? Does it continue to worsen month after month, even with your best efforts to save and set aside money? In cases of significant debt, Chapter 7 bankruptcy for individuals is often the correct choice.
What types of debt can Chapter 7 bankruptcy discharge?
- Medical bills
- Credit card bills
- Rent or mortgage payments
- Personal loans
- Car payments
- Tax debts with limitations
The purpose of Chapter 7 bankruptcy is eliminating as much debt as possible, potentially all of it. The trade-off is that you might lose some of your assets to creditors, but it is important to remember that this is not guaranteed. Using California’s bankruptcy exemptions, you can protect some of your most valuable pieces of property, like your home or automobile.
Please keep in mind that not all debts can be discharged through a Chapter 7 bankruptcy filing, no matter how significant. Secured debts are typically not eligible to be discharged or erased, or, if they can be, there is often a high risk of losing property as collateral. The most common type of secured debt is a student loan. Although, various other types of secured debt could pertain to your financial situation, such as amounts you need to pay due to a court order or judgment.
Is Chapter 13 Correct for You?
For people with significant debt but a reasonable opportunity to repay it, Chapter 13 bankruptcy might be the correct option. Through Chapter 13, you will not necessarily eliminate all of your debt. Instead, the debt you have is minimized through negotiations with your lenders, and what remains after minimization is repaid across the next three to five years.
Why would you want to repay some of your debt and not try to discharge all of it, though? The benefit of Chapter 13 is it allows you to keep more of your property by avoiding liens and collections. If you think you would be able to repay your debts with some rearrangements and compromise, then we should talk about Chapter 13 before considering Chapter 7.
What are Property Liens?
While Chapter 7 bankruptcy filings can discharge overdue car and mortgage payments, they might not be able to do so cleanly. In the vast majority of cases, automobiles and real estate loans are accompanied by a property lien, making them a secured debt. When a debt is discharged, the lien is triggered, allowing the lender to take the piece of property as collateral.
Our bankruptcy attorneys always pay close attention to liens whenever we help a client with their bankruptcy filing, whether it is a Chapter 7 or 13. There are situations when filing for bankruptcy is not actually the best choice if you would lose too much property due to liens.
There is no better time than today to start fighting your debt. Do not spend any longer under the shadow of heavy debt when you could be feeling financial relief. Tell our Rancho Cucamonga bankruptcy attorneys about your situation today, and we can tell you if Chapter 7 or 13 bankruptcy can help.
We offer free initial consultations. Dial (909) 726-7112 to schedule yours.