The Bankruptcy Alphabet: “B” is for the “Benefits of Chapter 13”

March 21, 2012

Potential clients often ask me why anyone would want to file a Chapter 13, if they are otherwise eligible to file a Chapter 7. There are many advantages in Chapter 13 that don’t exist in Chapter 7. While some people may not need those advantages, for others those advantages are essential to achieving a fresh start.

The following are some of the advantages of Chapter 13:

  • Debts which one was orderd to pay as part of the property settlement in a divorce can be discharged
  • A house can be saved from from foreclosure or a car saved from repossession
  • Penalties owed to taxing authorities can be discharged, even if the underlying tax is not dischargeable
  • Homeowners association dues can be discharged
  • Bankruptcy attorney’s fees can be paid over time
  • A tax sale can be stopped, and the tax can be repaid as part of the Chapter 13 plan
  • The loans on rental property, cars, boats and vacation homes can be modified, without the bank’s consent
  • In certain circumstances a second or third mortgage on a home can be removed
  • A debtor can continue to operate their business

There are also some clients who just want to try to repay what they can, but don’t want to be obligated to repay more than they can afford. For those people, Chapter 13 may also be a good choice.  Is Chapter 13 right for you?  Contact a qualified bankruptcy attorney to find out.

See what lawyers around the country have to say on the letter “B”:

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  6. If you are in financial distress, and can not meet your debt obligations temporarily; but has a regular income, to possibly pay your loans under a more lenient payment plan; then, Chapter 13 of the United States Bankruptcy Code, codified under Title 11 of the United States Code is ideal for you to pursue. In contrast to Chapters 7 or 11, which are liquidation and involuntary in nature while Chapter 13 is a financial voluntary reorganization of your debts, under a federal bankruptcy court.
    The advantage of filing Chapter 13 bankruptcy is that this will delay or stop foreclosures. This will give you 3 to 5 years to settle your debts. But to avail this option; you need to fulfill several requirements and qualifications. The limit of your debts must total not more than- $1,081,400.00 in secured debts and $ 360,475.00 in unsecured debts (This is effective since April 2010, but subject to changes based on average cost of living.)

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  9. […] Bankruptcy Attorney Shawn N. Wright Bar Date by Ormond Beach Bankruptcy Attorney, Lewis Roberts Benefits of Chapter 13 by Vermont-New Hampshire Bankruptcy Lawyer, Michelle […]

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