In certain cases, Chapter 13 bankruptcy is a much better option for a debtor than Chapter 7 Bankruptcy. Many times, a debtor won’t have the option to go for Chapter 7 because he/she may not be eligible for it. If you are a debtor, it is very important that you sort out all the problems with regards to your bankruptcy and decide the one which is best for you. Most people think that the Chapter 7 bankruptcy is the best option as it gets rid of most of the debt while on the other hand; Chapter 13 bankruptcy requires you to repay some portion of the debt. However, there are some advantages of filing for the Chapter 13 bankruptcy. Here is a list of some of these advantages:
You Can File For Chapter 13 Bankruptcy Even When You Are Not Eligible For Others
If your current income is more than the average income for a family of your size in the state you reside in, six months before you have filed for bankruptcy you can only go for Chapter 13. You can also file for Chapter 13 bankruptcy even if you have the means to return a certain sum of your liability.
What about keeping my home in bankruptcy?
You Have Missed A Few Installments on Your Car Loan
Chapter 13 bankruptcy gives you the luxury of repaying some of the missed payments on a car or home loan. This option is not available with the Chapter 7 bankruptcy.
No Tax Obligation for Filing a Chapter 7 Bankruptcy
If you have a student loan, a tax obligation or any other form of debt, you can include all of them in your Chapter 13 bankruptcy plan and pay it off over a period of time. You do not have this option in the Chapter 7 bankruptcy.
Your Co-Debtor Will Be Off the Hook
If you have a personal debt, then your creditor won’t go after the co-debtor for payment if you have filed for Chapter 13 bankruptcy. This applies only if you are on time with your bankruptcy plan payments.
You Will Get Protection from the Bankruptcy Court
If you file for Chapter 13 bankruptcy and have a sincere desire to pay off all your debts, then the bankruptcy court will protect you from the creditors who are coming after you.
You Can Keep Your Non-Exempt Property
If you file for Chapter 7 bankruptcy, you have the freedom to keep only your exempt property which is protected from the creditors under the state law while your non-exempt property will be taken over by the bankruptcy fiduciary who dispenses the payoff to the creditors after making a sale. So if you have a non-exempt property that you cannot do without, then you should choose the Chapter 13 bankruptcy which allows you to keep all your property as you pay your debts via your future income.
If you have any questions about Florida chapter 13 or chapter 7 bankruptcy or would like to speak to us about your options, please contact us at (813) 518-7411. We represent clients during stressful and difficult times in their lives. We are empathetic, responsive, and push for a quick resolution. We look forward to helping you resolve your issue quickly, fairly, and in a way that will help you to return to the stable, predictable life that you deserve.