Filing Bankruptcy in San Diego-Understand the Types of Bankruptcy

Did you know there are different types of Bankruptcy to help resolve your debt?  Under the United States Bankruptcy Code there are bankruptcy chapters.  The best chapter for your situation depends on your income, property you own, total debt owed, your income and your financial needs.  Some of the most common options include Chapter 7, Chapter 11 and Chapter 13 bankruptcy.

• First, we have Chapter 7 bankruptcy—In cases where there is a high amount of consumer debt, Chapter 7 bankruptcy may be the right option.  In fact, Chapter 7 makes up the the majority of bankruptcy cases filed.  With this solution, all outstanding debts are wiped out and never need to be repaid.  This solution will immediately stop debt collectors from calling and give you a fresh financial start.
• Secondly, we have Chapter 13 bankruptcy—For cases with a high large amounts of asset-related debt, the right option may be to file for Chapter 13, which functions similarly to debt consolidation without the potential for instability when private companies offer their services. Now if your assets are no longer worth the monthly payments, Chapter 13 can be a solution to reduce payments and avoid foreclosure or repossession.
• Finally we have Chapter 11 bankruptcy—As a result of the Small Business Reorganization Act of 2019, Chapter 11 is now much more accessible to small business owners. If you owe less than $2,725,625, you may be able to restructure your finances and reduce debt while maintaining ownership and control over your business. Like Chapter 13, you will reorganize your debt into a reasonable repayment plan.