Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What Are the Advantages of Chapter 13 Bankruptcy?

0
Posted

What Are the Advantages of Chapter 13 Bankruptcy?

0

Chapter 13, in some circumstances, can offer significant advantages over Chapter 7. The main advantages are: • More debts are dischargeable in Chapter 13 than in Chapter 7; • Non-dischargeable back taxes and child support can be repaid over the life of the plan without interference from the creditors and, usually, without further interest and penalties once the bankruptcy petition is filed; • A Debtor can keep property in a Chapter 13, which might be lost to the Trustee in Chapter 7; • Secured debts in Chapter 13 may be reduced to the value of the property involved, depending on when the debt was incurred. Generally, a secured vehicle debt created within 2 1/2 years before filing must be paid in full. Secured vehicle debts older than 2 1/2 years require paying the value of the collateral. For example, if a Debtor has a vehicle worth $6,000 but owed $8,000 against it, the secured debt is reduced to $6,000 – the value of the vehicle. For obvious reasons, this is referred to in legal jarg

Related Questions

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.