Reasons to File for Chapter 13 Bankruptcy

You may be considering Chapter 13 bankruptcy even though there are other chapters you could probably use. However, there are some benefits to this route that may be too good to pass up. You should learn the typical reason for choosing this option over others.

In many cases, other chapters do not allow you to declare if you make too much money, but Chapter 13 bankruptcy does not have that requirement. That’s why you should choose this route if you earn more than the median income for your state. In fact, you must have enough income to pay many of your creditors when you choose this option, so this may be the right decision for you if you have a small disposable income after paying the bills that is not included in the case. . You should talk to your attorney to make sure you qualify based on your income.

Another reason to choose Chapter 13 bankruptcy over other chapters is that you can often keep more of your assets when you do so. This is because you are paying off some of your creditors instead of paying off all of your debt, so you get a little more leeway than you would during Chapter 7. You just have to make sure that you can continue to pay these active on time. or you may lose them. For example, if you have a house or because you want to keep it, you need to make your payments on time or you could end up losing them.

Also, you may want to file for Chapter 13 bankruptcy depending on the type of debt you have. Not all debts qualify for other chapters. For example, any money you got through fraud or fines you received from the government should be paid at least partially, not wiped out entirely. If you can’t pay them off in full, you can arrange to pay between three and five years, and once you’ve finished paying the agreed-upon monthly amount, the rest of the bill will be wiped out. Talking to a lawyer will let you know if your debts can be eliminated through this option or if you need to use a different tactic.

In fact, you should talk to a lawyer even before you prepare to file a lawsuit. This is because you do not want to waste time on a case that you are not eligible to participate in. You need to make sure you qualify and that it will benefit you as much as you think it will.