Most people filing bankruptcy prefer to file under Chapter 7. However, the Chapter 13 bankruptcy offers many benefits that the Chapter 7 does not.
The Wage Earners Plan for Debt Reduction
The chapter 13 bankruptcy can cram-down the amount owed on certain secured debt such as automobiles and furniture. Basically, in a chapter 13 bankruptcy the debtor pays back a percentage of his/her debt. The debtor in most cases receives a substantial discount on the debt in the chapter 13 repayment plan.
Chapter 13 Bankruptcy Stops the Harassment
garnishments, repossessions, foreclosures and more.
Once the automatic stay goes into effect, stopping all collection activity, the debtor is given an opportunity, typically up to five years to pay back a percentage of the debt, with no creditor harassment.
Often times, people will file a chapter 13 bankruptcy because they are not eligible to file a chapter 7. Debtors are sometimes disqualified from filing a chapter 7 because they have filed a chapter 7 in the past eight years or because they make too much money to file a chapter 7. Even if a debtor is disqualified from filing a chapter 7, he or she may still be eligible for the protections of the bankruptcy court in a Chapter 13 reorganization.
Weighing to FIle Chapter 7 or 13 Bankruptcy
If you believe that a bankruptcy may be able to help you reorganize your debt, please call 757-896-0868 to meet with one of our experienced bankruptcy lawyers for a FREE CONSULTATION
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