Thomas F. Miles, Attorney and Counselor at Law
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Does Chapter 13 bankruptcy offer the best financial solution?

Making the decision to seek bankruptcy protection is a significant event. It marks a transition between struggling to overcome financial strife and deciding to take a definitive step toward resolving the matter. For many in California, choosing which form of bankruptcy to pursue can be a challenge. In this piece, information on Chapter 13 bankruptcy is offered in the hopes of making those decisions easier to make.

Chapter 13 bankruptcy is a path that allows individuals to retain most of their assets. It is often understood as a reorganization of debt, as opposed to Chapter 7, which is aimed at the discharge of unsecured debt. In Chapter 13, individuals and families are given the opportunity to regain financial stability and continue paying their debts over a period of time. This is often the best path for those who are able to retain their income and expect to regain financial stability over a short period of time.

Within Chapter 13 bankruptcy, filers can keep their home, which is often their biggest investment. Mortgage debt, along with many other types of debt, are organized into a repayment plan that the bankruptcy court signs off on. The consumer then adheres to the payment schedule laid out within the plan. At the conclusion of the bankruptcy period, usually three to five years, some debts are forgiven. However, success relies on the consumer's ability to make the agreed-upon payments.

Each and every California resident has their own unique needs when it comes to pursuing bankruptcy. For those who have a steady and secure form of income and wish to retain their home and other personal property, Chapter 13 bankruptcy offers a path toward meeting those goals. As with any bankruptcy matter, the best way for an individual to make a decision on which type of bankruptcy to pursue is to meet with a bankruptcy attorney to go over the specifics of his or her financial standing.

Source:, "Should I File for Chapter 13 Bankruptcy?", Jessica Whitmore, Feb. 17, 2015

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