Amador City, California
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Amador City, CA 95601
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Difference Between Chapter 7 & Chapter 13 Bankruptcies June 29, 2018

Amador City, Amador
Difference Between Chapter 7 & Chapter 13 Bankruptcies, Amador City, California

If you’re drowning under a sea of debt, bankruptcy protection can provide a valuable lifeline and help you get your feet back on solid ground. Because no two situations are exactly alike, bankruptcy law offers two programs for those struggling to meet their financial obligations: chapter 7 and chapter 13. Knowing the difference between the two options will ensure you get your life back on track.

Chapter 7 Liquidation

bankruptcyA chapter 7 bankruptcy is ideal for borrowers who have suffered a job loss or medical emergency that have left them unable to pay their bills. In chapter 7, also known as a liquidation, you may be able to eliminate most unsecured debt, such as credit cards, hospital bills, and even some back taxes. In exchange, the trustee could seize some of your assets to pay back your creditors, but the law allows you to exempt a wide range of belongings. In fact, with the help of a good attorney, you could take advantage of bankruptcy protection without giving up anything at all.

Chapter 13 Restructuring

Unlike chapter 7, chapter 13 bankruptcies are best for those who have experienced a temporary setback, but still have the resources to get caught up on their debts. If you’ve fallen behind on a mortgage or car loan, a chapter 13 bankruptcy allows you to bring those accounts current through a court-managed payment plan. Many of your unsecured debts can still be discharged, but your creditors must get at least as much as they would have if you’d filed for chapter 7.


If you’ve fallen behind on your debts, McEnroe & Turner in Amador, CA, will help you find a way out of even the most difficult financial situations. With over 40 years’ experience focusing closely on bankruptcy law, they have the expertise to identify the best strategy for your unique situation. For your free, no-obligation consultation, visit the website or call (209) 267-1381.