Legal Question in Bankruptcy in California

Re: Which bankruptcy

For most people the best way is usually Chapter 7 because it is faster and no money has to be paid back. However, you must qualify to do a Chapter 7 and there are some debts that can only be discharged in a Chapter 13. So, ultimately, which Chapter you file depends upon your unique situation. Many attorneys will provide you with a free consultation and means test evaluation to help determine which chapter would be best for you.

Re: Which bankruptcy

Unfortunately, there was a recent change in the law that made it more difficult to file for Chapter 7.

The difference between the two is that in Chapter 7 you will have discharged some or all of your debt. In chapter 13, you will have renegotiated your debts. In short, Chapter 7 does more to get rid of your existing debt.

But Chapter 7 now requires that you be "means-tested." In this test, the court looks to how much money you earn to determine if you can qualify to file Chapter 7.

If you earn little enough, you do qualify.

If you want to find out more, call for a free consultation. Our office is in Pasadena.

Sincerely, RC Lim

Re: Which bankruptcy

You would need to provide more information. It depends on your income and regular monthly expenses and the average over the past few months. Most people like Chapter 7 because it discharges most -- if not all -- of their debt. Under Chapter 13, you would have to pay a portion back over a period of 36 or 60 months. That's usually used if you are behind in house or car payments, want to keep them, and you can't catch up with just one payment.