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Chapter 7 vs. Chapter 13 What's the Difference?

Chapter 7 vs. Chapter 13 Bankruptcy

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Debt can happen to anyone for a wide variety of reasons. Whether you are unable to make your credit card payments, or your mortgage is becoming too difficult to pay off, there are ways to get your life back on track and bankruptcy may be one of them.

The most important consideration when deciding to file for bankruptcy is whether to file for Chapter 7 or Chapter 13. At RJB Law Offices, we have a comprehensive understanding of the intricacies of bankruptcy. A Glendale bankruptcy attorney from our team can assess your situation and help you determine which form of bankruptcy is best. Through personalized counsel and compassionate guidance, we will help you turn your finances around.

What Is the difference between Chapter 7 and Chapter 13?

Chapter 7 bankruptcy is advantageous for those who have unsecured debt and would benefit from liquidation of that debt. The court orders a "stay" to stop any collection agencies and lets you keep your assets while wiping out any debt.

There are, however, certain non-exempt debts you still need to pay, such as child support and most taxes. When you file for Chapter 7 bankruptcy, a trustee is assigned to your case. The trustee's job is to sell your nonexempt properties back to the creditors. If you don't have nonexempt assets, your creditors will not receive anything back.

In order to qualify for Chapter 7, your income must be equal to or less than the median income of your county. If you make too much to qualify, you will have to file under Chapter 13 instead.

For those with a steady income and substantial property, such as a home, Chapter 13 bankruptcy is also beneficial. The IRS allows you to keep all of your property and set up a debt repayment plan. Repayment plans usually last between five to seven years.

Not sure which chapter of bankruptcy you qualify for?

Contact the RJB Law Offices for compassionate and experienced help that has served thousands find financial success.

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Why Work With RJB Law Offices?

We Put Your and Your Needs First.
  • We've helped thousands of people and businesses find debt relief.

  • We are known for honest, knowledgeable, and client-focused service.

  • We are a multi-lingual firm with attorneys who are fluent in English and Tagalog.

  • We will treat you, like we treat all our clients, with respect and decency.

Highly Recommended by Our Clients

See How We've Helped Clients Just Like You Overcome Their Debt Issues
  • “I am telling all my friends, if they have financial problems, go to RJB Law Offices and surely, they will be helped.”

  • “Your help has made me emotionally and financially stable. Now I have the chance to move forward.”

  • “The experience, honesty and integrity of your law firm have helped me and many others get that chance to build a better financial future. ”

  • “You were all very caring, professional and understanding through it all. Thank God that we came across Atty. Ray Bulaon.”

  • “Thank you so much for accommodating us and your sound advice.”

  • “I would like to take a moment to say that I am truly grateful for your professional and personal assistance in this matter.”

  • “We are as grateful as those who have sought your help and are now enjoying a debt-free life.”

  • “Thank you for helping us in time of need. Now we can start a new life.”

  • “We can breathe easier now. We wish to thank you and all the members of your office.”

  • “Thank you for everything. You will always be included in our prayers.”

  • “I just want to thank you for helping me through this difficult time. my life is finally moving forward.”

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