If you are considering filing for bankruptcy, it’s important to understand your options and how each approach provides debt relief. Individuals can file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy based on their debt burden and income. To discuss which chapter is most appropriate for your situation, turn to The Law Office of Mark Briden in Redding, CA. This experienced legal team will help you understand your options so you can get the financial assistance you need.

A Guide to Your Bankruptcy Options

What Is Chapter 7?

Chapter 7 bankruptcy was designed for individuals who have little or no income and cannot reasonably afford to pay down their debt. In the simplest terms, Chapter 7 bankruptcy takes a liquidation approach to debt relief, which means your creditors are paid from the cash value of certain personal assets rather than out of pocket. Personal assets like a home or vehicle can be deemed exempt based on their value, meaning they will not be liquidated when you file for bankruptcy.

What Is Chapter 13?

Chapter 13 bankruptcy is a method of reorganizing of your debt. Under this filing, you will still have to pay your creditors at least a portion of what you borrowed, but you will be able to do so under a more manageable payment plan. Chapter 13 bankruptcy is for individuals who have a steady stream of income but cannot afford their current minimum payments. One of the greatest benefits of Chapter 13 bankruptcy is that it allows you to maintain possession of your assets, including those that might be nonexempt under Chapter 7.

If you cannot afford the minimum amounts due on your debt and you have missed payments, turn to The Law Office of Mark Briden in Redding, CA, for your free consultation. Check out the firm online to learn about the bankruptcy help they provide, and call (530) 222-1664 to talk to a seasoned attorney today.