Bankruptcy

5 Reasons to File Chapter 13

By Chris Kramer

This guest blog entry was written by David Chang of Chang & Carlin, LLP. Chang & Carlin offer bankruptcy and real estate legal services for Chicago and its suburbs. Read David Chang’s blog at http://changandcarlin.blogspot.com/

Many debtors view Chapter 7 bankruptcy as the “better” type of bankruptcy to file, and that Chapter 13 is forced upon them by the courts. However, filing bankruptcy under Chapter 13 has many benefits.

Here are 5 major reasons why people may choose file for Chapter 13 bankruptcy:

1. Chapter 13 has protections designed to stop a foreclosure or repossession.
2. Chapter 13 bankruptcy can protect an asset that would otherwise not be protected in Chapter 7, and would be sold to pay creditors.
3. The debtor makes too much money to file for Chapter 7, and would not be able to file otherwise.
4. The debtor has recently had debts discharged in a Chapter 7 case and is not eligible to file again.
5. Chapter 13 can consolidate debts that would not be dischargeable in a typical Chapter 7 bankruptcy case.

Full post as published by The Bankruptcy Blog on September 29, 2009 (boomark / email).