types of bankruptcy

Contra Costa/Solano/Marin/Napa/Alameda Bankruptcy Attorney
Most of us believe that bankruptcy just can’t happen to us. We’re responsible citizens, hold regular jobs or own our own businesses. Then the unimaginable happens! Something like the present mortgage meltdown. Or an injury that puts us out of work. Or an illness that devastates us financially.

Much interest in filing for bankruptcy is triggered by a foreclosure notice. Bankruptcy may provide a way to stay in your home if you can catch up on back payments. Whether this is a wise financial decision will depend on the current value of your home and your belief in the housing market’s recovery. An experienced attorney can guide you through your foreclosure and bankruptcy options.

Chapter 7 is the original form of “fresh-start” bankruptcy. But not everyone qualifies. For example, if your income is above the California median, you probably can’t file Chapter 7. The alternative is Chapter 13, which requires a repayment plan. Additionally, Chapter 7 does not cancel:

Additionally, Chapter 7 does not cancel:

Liens on personal or real property (the debt will be canceled, but you don't get to keep the security if you don't pay for it).
Most income taxes incurred in the last three years.
All student loans, unless you qualify for a hardship discharge.
Child support and spousal support or property settlements.
Any money that you owe as a result of injuring or killing someone while you were operating a motor vehicle, vessel or aircraft under the influence of alcohol, drugs, or another substance.

If your income is too high to qualify for a Chapter 7 bankruptcy, Chapter 13 is your remaining choice. This involves negotiating a repayment plan with each of your creditors. When you file, creditors must stop their harassing calls and any foreclosure actions, garnishments and repossessions are halted.
Features of Chapter 13 include:

Renegotiation of debts
3 – 5 year repayment schedule
Payments based on value of assets and amount of disposable income
Preservation of real and personal property