When clients come to us considering bankruptcy, they are usually worried about the future and possibly upset about decisions made in the past. We are here to ease those worries and show you that there is a path forward. While bankruptcy is clouded in stigma, we strive to prove that facing this process does not mean you’ve failed. In reality, making the choice to file means that you’re taking the first step toward a more stable financial future.
At the Law Office of Robert L. Firth, our attorney has decades of experience guiding individuals through the bankruptcy system. In addition, we help our clients discharge their tax debts and repair their credit after their case has concluded. Schedule a free initial consultation with us in Cathedral City, California, to get started. We serve the surrounding areas of Palm Springs, Palm Desert, Desert Hot Springs, Rancho Mirage, and the entirety of the Coachella Valley.
Which Kind of Bankruptcy is Right for You?
There are two primary types of bankruptcy to consider: Chapter 7 and Chapter 13. Each of these processes has distinct benefits and costs. There is no cookie-cutter approach to bankruptcy, so we’ll strive to determine which chapter best fits your specific needs.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as a “liquidation” bankruptcy. This Chapter of the bankruptcy code allows you, the debtor, to cancel most or all of your debts. In turn, this process also provides a third party trustee to sell any of your property which is over the bankruptcy exemption limit. This limit is quite generous in California, but any additional property can be used to pay back your creditors.
Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, you can restructure your debts, while eliminating some, and agree to a repayment schedule that will span three to five years. This option allows you to keep your property, even if you are over the exemption limits. In addition, you may also be able to rid yourself of the second deed of trust on your home, commonly referred to as a “lien strip,” if your home is worth less than the first deed of trust.