Some people will file for Chapter 13 bankruptcy because their income is too high to qualify for Chapter 7 proceedings or because they have valuable property that they don’t want to risk losing in the bankruptcy process. Chapter 13 Bankruptcy does not require the liquidation of your personal property but will instead necessitate a repayment plan.
Chapter 13
Will bankruptcy leave you with nothing?
With Chapter 7 bankruptcy, the goal is to eliminate the debt. Typically, the person filing does not lose any assets. Occasionally someone will file knowing they will lose an asset but decides to file anyway because of the amount of debt they owe and they cannot afford to pay the equivalent value of that asset in a chapter 13.
Requirements for Filing Chapter 13 Bankruptcy
Chapter 13 is an extremely helpful way to protect assets such as save your home from foreclosure by paying mortgage arrears over time, reducing what is owed on a car and reducing debt in general, among other things.
WHERE YOU LIVE CAN IMPACT THE TYPE OF BANKRUPTCY YOU CAN FILE
Where you live can impact the type of bankruptcy you can file. That is because several years ago, Congress determined that in deciding whether a debtor can wipe out their debt entirely or must pay some of the debt back, there should be more focus on a debtor’s income
Can bankruptcy help with student loans?
It should be noted that Chapter 7 and Chapter 13 bankruptcy doesn’t generally discharge Student loan debt, although there are exceptions for Undue Hardship. In addition bankruptcy can impact certain private student loans. Chapter 13 can also be used to hold off on student loan collection during the five year chapter 13 plan.
Can I Buy or Lease a Car if I am Still in a Chapter 13 Bankruptcy?
Can a debtor buy or lease a car while they are in bankruptcy. The answer is yes.
Bankruptcy Can Help with Delinquent Utilities
If you are able to file a Chapter 7 to eliminate unsecured debt, then any outstanding utility bills can be included and eliminated as well. Similarly, if you are paying a reduced amount to your unsecured creditors in a Chapter 13, the Utility Companies can be treated the same way.
McDowell Law Equal Justice Award
Your knowledge and experience with Chapter 13 and Chapter 7 benefitted your clients
What happens if you miss a Chapter 13 bankruptcy payment?
if you have a legitimate financial emergency that prevented you from paying, the court typically will allow you time to catch up or restructure your payments
How do you decide if Chapter 7 or Chapter 13 bankruptcy is best?
Chapter 13 Bankruptcy can be used to pay missed mortgage or car payments over time