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Bird & Van Dyke, Inc. - A Professional Law Corporation

Local Attorneys, Local Representation

Free Initial Consultation

Stockton 209-390-8877

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Bird & Van Dyke, Inc. - A Professional Law Corporation
STOCKTON
TRACY
Contact us for a
Free Initial Consultation

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Local Attorneys, Local Representation

We help clients throughout Northern California overcome their legal challenges and move forward with their lives.

A Former Prosecutor Working For You.

Our inside knowledge gives clients the edge they need to defend themselves against criminal charges.

Get Compensation After An Accident

At Bird & Van Dyke, we help clients put the pieces back together after being injured in an accident.

Meet Our Legal Team

Contact us at 209-390-8877 to schedule a free consultation.

LOCAL ATTORNEYS, LOCAL REPRESENTATION
LOCAL ATTORNEYS, LOCAL REPRESENTATION

Negative financial circumstances can sometimes lead people to financial disaster. In order to keep their heads above water, some California consumers resort to filing personal bankruptcy. In some instances, creditors may offer to settle the debt for a fraction of what one may owe.

Consumers are sometimes faced with either settling with their creditor or filing a bankruptcy petition. If a creditor has offered some form of a settlement, one needs to be confident that they can afford the payments they have agreed to settle for. It can be beneficial to one’s credit to pay even a portion of the debt. Also, when a debt is settled, it will fall off of one’s credit report in seven years.

There are two bankruptcy filings that one may qualify for and that is Chapter 7 and Chapter 13. The difference between the two is Chapter 13 does not automatically discharge debts that are owed and some form of payment is required toward the debts. However, Chapter 13 will also only remain on a credit report for seven years. Chapter 7 is based on the income level in one’s area and remains on a credit report for ten years.

In the long run, a California consumer is regarded as more of a high risk when a personal bankruptcy appears on their credit as opposed to settling the debt. Either way, as long as the consumer keeps up with their current monthly payments after bankruptcy or debt settlement, their credit will be positively impacted in the future. Bankruptcy has it’s initial drawbacks; however, it can offer relief and lead individuals to a fresh financial start.

Source: foxbusiness.com, Bankruptcy’s Credit Damage Worse than Debt Settlement’s, Jane Mcnamara, Oct. 10, 2013