What are the advantages of chapter 13 over chapter 7?
Filing a chapter 13 bankruptcy has several advantages over a chapter 7 liquidation. A chapter 13 bankruptcy allows you to discharge a few more types of debts than does a chapter 7 bankruptcy. If you own an unincorporated business and your business is not a partnership, you can continue to own and operate the business under a chapter 13 plan. Under a chapter 7 liquidation, a bankruptcy court may order that your business or its assets be sold. Also the automatic stay of a chapter 13 bankruptcy protects any co-signers of consumer debts to the extent that the debt is paid in full through your plan, whereas chapter 7 offers only very limited protection (almost no protection) of others who may share the debtor’s obligation. Finally, in a chapter 13 bankruptcy you can pay out past due taxes and past due payments on your mortgages and/or automobiles.
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