Chapter 7 Bankruptcy Orange County
A Chapter 7 bankruptcy Orange County is the only type that will immediately give you a clean slate; that is, without having to repay your debt. In a Chapter 7 bankruptcy Orange County, some or all of your assets may have to be liquidated in order to pay off your debt, so it may not be ideal if you want to keep your house, car, or other valuable properties.
To qualify for a Chapter 7 bankruptcy Orange County, your income must be less than the state median or be insufficient to pay all of your debt. This is determined through a means test, which is part of the bankruptcy filing process for every state.
Chapter 13 Bankruptcy Orange County
Chapter 13 bankruptcy Orange County involves a repayment plan that you and your creditors have agreed on. Unlike Chapter 7, it won’t clear your debts immediately, but it does allow you to keep your assets. A Chapter 13 bankruptcy Orange County also appears less drastic on a credit report.
Debtors are usually granted Chapter 13 bankruptcy Orange County because the means test shows they are capable of paying the debt—they just need more time to do so. To qualify, one must not owe more than $269,750 in unsecured debts and $807,750 in unsecured debts. Companies and corporations are not allowed to file Chapter 13 bankruptcy Orange County.