Want to know if you qualify for a Chapter 13 bankruptcy? (Los Angeles bankruptcy attorney David Lozano will help you find out!)
Chapter 7 and Chapter 13 are the two most common bankruptcy plans that people file for. Chapter 7 is known as classic bankruptcy because it eliminates debt in one fell swoop! Chapter 13 is a reorganization plan, which is filed by people who simply need more time in order to catch up on their payments.
To determine whether or not you are eligible to file Chapter 13 bankruptcy, the bankruptcy court performs a “means test” to evaluate your income. The court compares the income you earned over the last six months with the median income of average Californians with the same household size.
If it turns out that you do have the means to repay your debt when given an extended payment period, the bankruptcy court will approve you to file Chapter 13 bankruptcy. But if for some reason you don’t qualify for Chapter 13, Chapter 7 bankruptcy is available as a back-up plan! One way or another, with David Lozano’s help you’ll be debt free and sitting pretty again soon!