The Benefits And Drawbacks Of Filing Chapter 13 Bankruptcy in Riverside

Posted byPaola Nadeau on Sep 2020 in Law and legal | 0 comments

Many people want to know what the difference is between Chapter 7 and Chapter 13 bankruptcy in Riverside, California. Also, which one is best? The better question to ask is what type of bankruptcy is right for you. First, not all people qualify for Chapter 7 bankruptcy due to eligibility requirements based on income. Chapter 7 bankruptcy can seem very appealing to those who are eligible as less debt needs to be repaid. Sometimes, after finalizing Chapter 7 bankruptcy people can walk away with almost no credit card debt to repay. However, even if you qualify for Chapter 7 bankruptcy you might want to seek legal counsel to inquire as to if pursuing Chapter 13 bankruptcy in Riverside might be a better choice.

Many people own valuable items such as a home or a car which they wish to keep. If you are behind on payments for your car or home, declaring Chapter 7 bankruptcy might not be the best choice for you. After finalizing a Chapter 7 bankruptcy, your creditors may take any valuable items that you own. For people who do not own valuable items or wish to exchange the items in return for less debt repayment, Chapter 7 bankruptcy might be a better option than Chapter 13 bankruptcy. However, keep in mind that Chapter 13 bankruptcy gives people who own valuables such as property and automobiles more options. In certain circumstance, declaring Chapter 13 bankruptcy in Riverside can allow you to not only keep your home but also make your mortgage and car payments more manageable. A Chapter 13 bankruptcy can sometimes allow you to treat home and car payments like credit card payments. Even though you have to pay more towards clearing your debt per month, a Chapter 13 bankruptcy can make your once scary payments manageable while allowing you to keep your home and belongings.

To ensure that you make the right choice when considering filing bankruptcy, consult with an experienced attorney so that you know all of your options and can select the best one for you. Depending on your situation, either a Chapter 7 or a Chapter 13 bankruptcy could be the right choice and improve your quality of life the most. In short, the benefits of declaring Chapter 13 bankruptcy include more options and more opportunities to keep your valuables. The drawbacks of declaring Chapter 13 bankruptcy is that you will likely have a higher monthly payment than if you declared Chapter 7 bankruptcy. The most important thing to ask your attorney is what legal avenue is right for you.

Chapter 13 Bankruptcy Riverside – There are some major pros and cons when filing Chapter 13 bankruptcy in Riverside instead of Chapter 7 bankruptcy. Given the complex nature of Chapter 13 bankruptcy in Riverside, you need to find a reputable attorney to assist in choosing the right legal avenue to pursue.