The Law Offices of Jane Cervantes

BANKRUPTCY: Chapter 7 & 13

 

You Deserve a Second Chance.

 

No matter how hard we try to meet our financial obligations and honor our debts, everyone is faced with unexpected hardships at some point in their lives. There comes a point of no return, in which you cannot realistically hope to recover on your own.  

 

Don't feel guilty. It's not your fault.

 

Some of the most common reasons that people file for bankruptcy include: Major illness and/or medical bills, job loss, loss of income due to injury or disability, divorce, predatory mortgages, credit cards with predatory default policies.

 

Should You File For Bankruptcy?

 

Did you know that under the right circumstances, it is possible to rebuild one's credit faster after filing bankruptcy, than if you had continued to struggle with crippling debt on your own?

 

Some of the reasons to file bankruptcy include:

 

• Getting a “fresh start” to rebuild one's credit.

• Stop the foreclosure of your home.

• Halt the repossession of your car or truck.

• Protect your bank savings. 

• Halt the garnishment of wages, lawsuits and other actions by creditors.

 

Is Chapter 7 Bankruptcy or Chapter 13 Bankruptcy right for me?

 

Once I evaluate your case, I will help you decide whether Chapter 7 or Chapter 13 is right for you. In a nutshell, Chapter 7 & Chapter 13 Bankruptcy can be described as follows:

 

Chapter 7 Bankruptcy: Liquidation

 

Chapter 7 is generally the preferred route for most people because it provides a “Fresh Start” in a matter of 90 days.  Most debtors  find that their property is completely exempt, so they do not have to give up anything to the Trustee in a Chapter 7.  

 

Chapter 7 is liquidation of your assets, meaning if you had any property that is not exempt under the California Code of Civil Procedure, it may be sold and used to pay back your debts by the Trustee.

 

Chapter 13: Repayment Plan

 

A Chapter 13 bankruptcy may be the best route for those who want to catch up on their mortgage payments, do not qualify for chapter 7, want to strip the second mortgage off of their principal residence or have debt which will not be discharged in a Chapter 7 bankruptcy.

 

It is also a good option for those who have unexempt property or who do not qualify for a Chapter 7 bankruptcy, because their income is too high.

 

• A Chapter 13 Bankruptcy consists a 3 to 5 year payment plan.

• Payments are based on your disposable income.

 

FOR A FREE PHONE CONSULTATION, CONTACT JANE CERVANTES TODAY @ (909) 626-3595