When is a Chapter 13 a better alternative than a Chapter 7?
There are several situations where a chapter 13 is preferable to a chapter 7. A chapter 13 bankruptcy is normally for people who have too much income to file a Chapter 7 bankruptcy or have the kind of debt that is non-dischargeable in a Chapter 7. Also, people file Chapter 13 because they are behind on their mortgage or business payments and are trying to avoid foreclosure. A chapter 13 bankruptcy allows them to make up their overdue payments over time and to reinstate the original agreement. Also, where a debtor has valuable nonexempt property and wants to keep it, a chapter 13 may be a better option. However, for the vast majority of individuals who are qualified and who simply want to eliminate their heavy debt burden without paying any of it back, Chapter 7 provides the most attractive choice. (BACK TO TOP) Q: Will Filing Bankruptcy Stop My Bill Collectors from Taking Action?
There are several situations where a Chapter 13 is preferable to a Chapter 7. A Chapter 13 bankruptcy is normally used by folks who are behind on their mortgage and file to stop the foreclosure of their home or property. Additionally, folks will file where they have too much income to file a Chapter 7 bankruptcy or have the kind of debt that is non-dischargeable in a Chapter 7 (e.g. certain taxes). A chapter 13 bankruptcy allows them to make up their overdue payments over time and to reinstate the original agreement. Also, where a debtor has valuable property that cannot be exempted and wants to keep it, a chapter 13 may be a better option. However, for the vast majority of individuals who simply want to eliminate their heavy debt burden without paying any of it back, Chapter 7 provides the most attractive choice.
