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Coronavirus Impact and Assurance: Yes! We are still open for business!

For the last year, thanks to the hard work of all of our staff, and you, our clients, no one who works at this office has gotten Covid while working here, and we have not spread a single case to any of our clients, while getting all of our client's legal needs taken care of. With the spread of vaccination the end is in sight, normal times where we can meet our clients in person in the office are just around the corner.

During the transition we will be having some in person, in office appointments for clients who have already been vaccinated, and for whom the CDC recommended period of time has passed since their last shot. Of course, for anyone who would prefer a phone or video appointment for safety, convenience, or any other reason those types of appointments are always available.

The weather is warming up and outdoor-in person appointments are now available. The updated CDC guidelines indicate that masks are not needed for vaccinated people outside if not in close quarters; although as a precaution we will continue to practice social distancing. If you have not had your vaccination, masks will continue to be a requirement.

Through the transition safety of all staff and clients will continue to be our top priority, we look forward to seeing you soon.

Please see our blog for more info on pandemic response.

The difference between Chapter 7 and Chapter 13 bankruptcy plans

| Aug 11, 2020 | Bankruptcy

Consumers seeking help to manage their debt may at some point come to consider filing for bankruptcy. However, before making the decision to apply for help under a bankruptcy plan, people should educate themselves about the different types of plans available.

The most common form of consumer bankruptcy is the Chapter 7 plan and the next most common form of consumer bankruptcy is the Chapter 13 plan. Both provide debt relief but in very different ways.

Chapter 7 bankruptcy plans

As explained by Credit Karma, a Chapter 7 bankruptcy plan discharges a consumer’s debt often in as little as a few months after the initial filing. No debt repayment occurs in this plan. However, a person’s assets may be repossessed should their value exceed the stated exemption level for the bankruptcy. For this reason, a Chapter 7 bankruptcy may be called a liquidation plan.

A consumer seeking debt relief via a Chapter 7 bankruptcy must meet qualification criteria via the means test. This test evaluates the person’s income and expenses to determine bankruptcy eligibility.

Chapter 13 bankruptcy plans

In contrast to the Chapter 7 plan, a Chapter 13 bankruptcy does not involve the loss of any assets. According to the U.S. Courts, a Chapter 13 plan consolidates a person’s debts into a form of structured repayment.

The consumer makes monthly payments to a trustee who, in turn, pays creditors per the plan. This continues for three to five years. Due to the need to make these payments, a Chapter 13 bankruptcy may be referred to as a wage earner’s plan. At the end of the term, any remaining debt is discharged.

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