Chapter 7
Bankruptcy

Chapter 13 Bankruptcy

Who should file for this type of chapter?

This form of bankruptcy is for people who do not have the means to payback their creditors and who possess a small to medium amount of equity. Certain times of property and amounts of equity are protected under Chapter 7.

This form of bankruptcy is for people who have a regular income and a lot of equity. Under Chapter 13, debtors pay back their creditors over time.

What is the procedure and how long does it take?

• The entire process takes 4-6 months
• Obtain credit counseling.
• File Chapter 7 Petition with proper documentation.
• Attend meeting with trustee and creditors.
• If approved, trustee liquidates assets.
• Certain creditors are paid and other debts are discharged.

• About 2 months to process, 3 to 5 years to complete.
• Obtain credit counseling.
• File Chapter 13 Petition with proper documentation.
• File payment plan with trustee within two weeks.
• Start paying debts within 30 days of filing payment plan.
• Attend meeting with trustee and creditors.
• Repay debts over three to five years.
• After repayment certain debts are discharged.

How often you may file?

To be utilized effectively, every eight years.

To be utilized two years after a Chapter 13 discharge or four years after Chapter 7.

Can I protect my home?

One of two sets of exemptions, CCP 703 and CCP 704, that will protect home equity top certain limits.

• CCP 703 up to $21,825 in home equity protected.
• CCP 704 from $75,000 to $175,000 in home equity protected.

Home is retained as long as payments are made according to plan.

Can I protect my home?

• CCP 703 up to $3,300 in equity.
• CCP 704 up to $2,550 in equity.

Car is retained as long as payments are made according to plan.

Are any other Assets protected?

There are many other assets exempt up to certain limits including:

• Tools of the trade.
• Personal and household possessions.
• Jewelry.
• Material for repair of home.
• Pension and retirement plans.
• Insurance and public benefits.

Assets are protected as long as payment plan is adhered to.

Will my debt get discharged?

After non-exempt assets are liquidated and creditors are paid unsecured debt, such as medical bills and credit card bills, are discharged.

After payment plan is completed, the trustee will discharge certain unsecured debts.

What is the long term effect on my credit?

Record of bankruptcy may appear on credit report for up to 10 years.

Record of bankruptcy may appear on credit report for up to 10 years.