While bankruptcy might be traumatic, it is an excellent way to get rid of excessive debts legally. As per lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, most people filing for bankruptcy prefer Chapter 7. This is probably because you get a discharge within a relatively smaller time and with few financial restrictions and probable loss of some personal property, they can get rid of their debts. However, if you have a substantial income to pay off your debts, you might not be able to qualify for Chapter 7. In such a scenario, Chapter 13 is a great way out for people in debt who wish to stop creditor harassment and get rid of their debts.
In case of Chapter 13, a repayment plan is devised based on your disposable income, through which you end up paying some portion of your debt to the creditors over a specified period (generally 3-5 years). Unlike Chapter 7 where the non-exempt property is sold off to pay the creditors, you can protect your assets from liquidation in Chapter 13 if you pay your creditors a sum equal to the non-exempt property. However, there is a limit capped by the court to saving non-exempt property by the debtor. In case you have enough income to afford the repayment plan, Chapter 13 is ideal for your financial recovery. For details regarding the benefits associated with this bankruptcy chapter and the protections you get when you file for bankruptcy, you can call 888-297-6023 to speak with bankruptcy lawyers Los Angeles.