Thomas K. McKnight - Personal Bankruptcy Attorney in Tustin, California

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Tipos de quiebra personal

In the case of individuals, as opposed to companies, there are two typical forms of bankruptcy: Chapter 7 and Chapter 13. Below is a brief summary of how each kind works:

Chapter 7: This kind of bankruptcy basically liquidates your assets in order to pay your creditors. Some assets-- usually including part of the equity in your home and vehicle, personal items, clothing, tools needed for your employment, pensions, Social Security, and any other public benefits-- are exempt, meaning you are able to keep them.

However your remaining, non-exempt assets will be sold off by a trustee assigned by the bankruptcy court and the proceeds will then be allocated to your creditors. Non-exempt assets might include property (apart from your primary home), recreational vehicles, boats, a second vehicle or truck, collectibles or other valuable items, bank accounts, and investment accounts.

At the end of the process, the majority of your debts will be discharged and you will no longer be under any responsibility to repay them. However, particular debts, like student loans, child support, and taxes, can not be dismissed.4 Chapter 7 is usually chosen by individuals with lower income and few assets.

Chapter 13: In this form of bankruptcy, you are allowed to retain your assets, but have to agree to pay off your debts over a given period of three to five years. The trustee collects your repayments and distributes them to creditors. Chapter 13 bankruptcy is normally chosen by consumers who wish to retain their non-exempt property intact or buy time against foreclosures or property seizures.

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Para obtener más información sobre el capítulo 7 y el capítulo 13 de bancarrota, o cómo presentar su bancarrota en Tustin CA, póngase en contacto con Thomas K McKnight LLP al (800) 466 - 7507 o visite nuestro sitio web en TKMLLP.com para una Consulta Gratuita. 

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