A chapter 13 bankruptcy is a payment plan that lasts 3 to 5 years depending on the disposable income and amount of non-exempt assets.
There are benefits of a chapter 13 because some debts that aren’t discharged in a 7 are in a 13.
The following are some of the advantages of Chapter 13:
Debts which one was ordered to pay as part of the property settlement in a divorce can be discharged.
A house can be saved from foreclosure or a car saved from repossession.
Penalties owed to taxing authorities can be discharged, even if the underlying tax is not dischargeable.
Homeowners association dues can be discharged.
Bankruptcy attorney’s fees can be paid over time.
A tax sale can be stopped, and the tax can be repaid as part of the Chapter 13 plan.
In certain circumstances a second or third mortgage on a home can be removed.
A debtor can continue to operate their business.
There are also some clients who just want to try to repay what they can, but don’t want to be obligated to repay more than they can afford. For those people, Chapter 13 may also be a good choice. Is Chapter 13 right for you? Contact a qualified bankruptcy attorney to find out.
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