San Diego Bankruptcy
Chapter 13 bankruptcy allows individuals to restructure their debt,
finances and assets in a fashionable manner in order to compensate their
creditors, and pay off their debts. The individual will propose to pay
the creditors over a period of time (usually 3-5 years). During this
period of time the creditors can't collect on any previously incurred
debt without the permission of the bankruptcy court. The individual is
then able to keep their property and the creditors will end up with less
money than they are owed.
Chapter 13 has a few advantages over Chapter 7. One of the most
immediate advantages is the ability to stop foreclosure. In addition you
can sometimes prevent collection against co-signers during the life of
the case.
One of the major disadvantages of Chapter 13 bankruptcy is that the
record stays on the individual's credit report for ten years. In order
to achieve a new line of credit the individual must first get permission
from the Chapter 13 Trustee. It also presents the problem where
creditors might not want to loan money to an individual of this nature.
Legal consultation is often necessary in order to effectively oversee
your Chapter 13 bankruptcy case. Professional bankruptcy attorneys can
provide you with the experience and dedication required to take complete
advantage of the situation and make sure you are not over-paying your
creditors.
To learn more about San Diego bankruptcy lawyers please visit our website at http://www.sandiegobankruptcycounsel.com/