There are two basic forms of bankruptcy for individuals and couples: Chapter 7 and Chapter 13. Both offer benefits, and it’s not always evident to customers which is the best option for them. The good news is that all you have to do is call Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free bankruptcy consultation with the best bankruptcy lawyer in Ontario CA.
If paying off medical debt is one of your key worries, there are significant variations between Chapter 7 and Chapter 13. During your appointment, we may go through these distinctions in further detail, or you can read on to learn the basics. Your best option will be determined by your long-term financial goals and the amount of medical debt you have.
The fundamentals of Chapter 7 medical debt relief
Chapter 7 bankruptcy, sometimes known as “liquidation bankruptcy,” is the most common kind of personal bankruptcy in the United States and California. In 2017, approximately 500,000 Chapter 7 files were made across the US, with more than 50,000 in California courts.
You’ll have to complete a number of requirements before filing Chapter 7, including attending credit counseling. You may file your bankruptcy after all of the prerequisites have been satisfied, which will include both the petition for bankruptcy and documentation pertaining to your income, obligations, assets, and other financial information.
The paperwork will be reviewed by the court, and if they consent to proceed, a trustee will be assigned to your case. After reviewing your assets, the trustee may decide to sell some of your property to creditors. Most debtors may keep most of their property if they use bankruptcy exemptions, which we can analyze for you.
Some of your medical debt may be required to be paid off, but because medical debt is unsecured and not a priority item, it can typically be dismissed completely with minimum payments through bankruptcy. The best bankruptcy lawyer in Ontario CA can help you determine if this is the best option.
The fundamentals of Chapter 13 medical debt relief
Although Chapter 13 bankruptcy is less prevalent than Chapter 7, over 20,000 files were made in California in 2017. It’s called a reorganization bankruptcy, and it doesn’t put any of your assets at jeopardy. You must, however, repay your obligations over a long period of time. You’ll have three to five years to pay off your debts using your spare income. You’ll obtain a discharge at the conclusion of this period, which will relieve you of any additional financial obligations.
Which is the best option?
The choice is once again between your long-term and short-term financial goals. The best solution for you will depend on your objectives, money, and a variety of other considerations. We’d want to hear from you if you’re interested in learning whether sort of bankruptcy will work best for you – or if bankruptcy is even suited for your scenario. For a free consultation with the best bankruptcy lawyer in Ontario CA, call Law Offices of Terrence Fantauzzi at (909) 552-1238 now.