Chapter 13 bankruptcy is a powerful tool that may be able to help you end your bill problems. Here are 13 reasons Chapter 13 bankruptcy makes sense written by my Bankruptcy Law Network colleague, Doug Jacobs.
- Flexibility: you can dismiss the case at any time or even convert it to a Chapter 7. You can modify a plan if income changes or you decide to give up a house or a car. You can refinance or sell a house during the plan.View Post
- A Chapter 13 will save a house from foreclosure as long as you can make the payments.
- You can strip a wholly unsecured second mortgage; or value a car if you’ve had it more than 910 days.
- You can challenge the costs added to your mortgage by the lender.
- Trustees want the plan to succeed and will work with you to get it confirmed.
- There are more debts that can be discharged including some divorce payments and damages for malicious and willful acts.
- Your attorney’s fees can be spread out rather than all due before filing.
- A Chapter 13 can be filed for one spouse even when married. (This is true of Chapter 7s also, but there are more advantages to having one spouse in a Chapter 13 plan.)
- You can avoid having to reaffirm a car in order to keep it.
- You can cure a tax problem or a Domestic Support Obligation (child support or alimony) over 60 months.
- You can stretch out your payments for a car or other secured debt.
- You won’t lose non-exempt property.
- Depending upon your income a Chapter 7 case can be challenged by the US Trustee, but not a Chapter 13.
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