Is Chapter 7 Bankruptcy Not The Right Option For You?
Consider the Chapter 13 Bankruptcy Alternative
We here at Chapter7.Me know that Chapter 7 bankruptcy may not be the right move for everyone.
If you don’t qualify for Chapter 7 bankruptcy but still want to get your debt under control, consider filing Chapter 13 bankruptcy.
Our sister site, Chapter13.Me, offers extensive Chapter 13 bankruptcy information and bankruptcy resources. We are sponsored by a wide network of participating Chapter 13 bankruptcy lawyers ready to answer your questions about the Chapter 13 bankruptcy filing process.
Below we offer you some of the basic information about Chapter 13 bankruptcy. Should you have additional questions, please visit Chapter13.Me or connect with one of our sponsoring Chapter 13 bankruptcy attorneys by taking a few minutes to fill out our free, no obligation evaluation form or call 1 (888) 632-0501.
What Is Chapter 13 Bankruptcy and What Does It Mean to You?
Chapter 13 bankruptcy is another consumer bankruptcy option under the U.S. Bankruptcy Code. Unlike Chapter 7 bankruptcy, Chapter 13 doesn’t liquidate assets or clear a person’s financial slate; instead, it may offer a person the chance to set up a debt repayment plan in exchange for getting to keep items tied to certain debts, like their home and car.
The intention of a Chapter 13 bankruptcy plan is to allow people time to catch up on their past due balances so they can keep their property. The average Chapter 13 repayment plan period is between 36 and 60 months long.
As long as the Chapter 13 bankruptcy petitioner keeps their current payments up to date and makes monthly payments toward past balances owed, they’re allowed to keep their property.
Under the Chapter 13 bankruptcy plan, a person’s debts are prioritized and secured creditors (like their mortgage company) are paid first. A person’s remaining disposable income goes to pay unsecured creditors, like credit card companies and medical bill collectors.
If all payments are made as scheduled, unsecured debt at the end of the Chapter 13 bankruptcy plan schedule may be discharged.
Your Reasons to File Chapter 13 Bankruptcy
Chapter 13 bankruptcy may be a good option for a person seeking to repay their current debt and get back on track with their payments.
You may want to consider talking with a Chapter 13 bankruptcy attorney if you:
- are having financial difficulties but receive a regular income;
- can make regular payments to repay some of your debt each month and still pay your monthly living expenses;
- are facing mortgage foreclosure or repossession of your property;
- have other secured debts on property that you want to keep;
- have certain tax debts that can’t be discharged through a Chapter 7 bankruptcy filing;
- have filed Chapter 7 bankruptcy within the last eight years and are not eligible to file again under Chapter 7;
- wish to protect co-signers on certain debts (Chapter 7 bankruptcy typically can’t protect them); and/or
- have past-due student loan debt.
If any of these situations sound familiar to you, Chapter 13 bankruptcy could be the right choice for you.
Learn more about how filing Chapter 13 bankruptcy may help you stop foreclosure and vehicle repossession by letting us place you with a local Chapter 13 bankruptcy lawyer.
All you need to do to get the process started is fill out our free, no obligation evaluation form or call 1 (888) 632-0501, and we’ll do the rest to connect you with a nearby bankruptcy attorney from our nationwide network of sponsoring bankruptcy lawyers.
The above synopsis of bankruptcy laws is by no means all inclusive
and is not intended to provide legal advice. These laws may have
changed since our last update and there may additional laws that apply
in your situation. For the latest information on these bankruptcy laws,
please contact a bankruptcy lawyer in your area.