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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

If you have made the decision to file bankruptcy, you may be wondering about which variety of bankruptcy is most beneficial to you. The reality is that, depending on your income, the courts may require you to file a specific type of bankruptcy.

Often, the decision of whether to file Chapter 7 or Chapter 13 bankruptcy is a decision the courts make. According to Credit Karma, if you have a high enough level of income your only option may be Chapter 13.

What is Chapter 13?

Chapter 13 bankruptcy is a reorganization bankruptcy. It has this name because, rather than liquidating assets to pay off a debt, the debtor consents to a repayment plan. Many advantages come with Chapter 13, including being able to retain your assets. Additionally, creditors often consider Chapter 13 more favorably than Chapter 7, as it indicates the debtor paid off more of the debt.

A Chapter 13 filing can also stop a bank from foreclosing on your home. This can assist homeowners in getting back up to date on their mortgage payments.

What are potential negatives of Chapter 13?

It can be difficult to stick to a budget while going through a Chapter 13 bankruptcy. Generally, if you file for a Chapter 13 bankruptcy the court will assume that every penny of disposable income you have will go toward paying the debt. Particularly if you have variable income, keeping to a payment schedule may be difficult.

However, Chapter 13 bankruptcy does not stay on your record as long as a Chapter 7 bankruptcy, and keeping assets is a major plus.