Ask Our Experts – SCV’s Trusted Legal Advisers
Taylor Williams, Partner
Donahoe & Young LLP
Q: What are the main differences between Chapter 7 and Chapter 13 bankruptcy?
A: Chapter 7 has a four to six month duration. A trustee sells assets not protected by an exemption, and pays creditors pro rata. The debtor gets a “discharge” (legal relief) from most debts – but not from spousal/child support or taxes. Chapter 13 has a three to five year duration. The debtor proposes a plan to pay creditors at least as much as they would get in Chapter 7, from future income. If the plan is confirmed and completed, the remaining debt is discharged.
Edward O’Hare, Lawyer
Group One Legal
Q: What are the differences between living trusts and wills?
A: Living trusts and wills both allow you to name beneficiaries who will receive your money or house upon your death. Beyond that, it is important to know the differences between these documents. With a will, if you have assets greater than $150,000, your loved ones will need to go through the costly, time consuming and public court process of probate to settle your estate. A trust, alternatively, will allow your heirs to avoid probate and to settle your estate privately with no court involvement. After meeting with clients most decide a trust is best for them.