Filing Bankruptcy Under Chapter 13

By Author: Michael Brown
Total Articles: 5
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Chapter 13 Bankruptcy is also known as a reorganization Bankruptcy. Chapter13 Bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of Bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts
A person can probably be a good candidate for Chapter 13 Bankruptcy if you qualify any of the following situations:

You have a sincere desire to pay back your debts, but you need the protection of the Bankruptcy court to do so. You may think filing Chapter 13 bankruptcy is simply the "Right Thing To Do" rather than file Chapter 7.
You are behind on your mortgage or car loan, and want to make up the missed payments over time and reinstate the original agreement. You cannot do this in Chapter 7 bankruptcy. You can make up missed payments only in Chapter 13 bankruptcy.
You need help repaying your debts now, but ...
... need to leave open the option of filing for Chapter 7 bankruptcy in the future. This would be the case if for some reason you can't stop incurring new debt.
You are a family farmer who wants to pay off your debts, but you do not qualify for a Chapter 12 family farming Bankruptcy because you have a large debt unrelated to farming.
You have valuable nonexempt property. When you file for Chapter 7 bankruptcy, you get to keep certain exempt property. If you have a lot of nonexempt property which you'd have to give up if you file a Chapter 7 bankruptcy, Chapter 13 Bankruptcy may be the better option.
You filed a Chapter 7 bankruptcy within the previous eight years. You cannot file for Chapter 7 again until the eight years are up.

A Debtor can file for chapter 13 if he

Has received a discharge under Chapter 7, 11 or 12 more than four years ago; or
Has received a discharge under Chapter 13 more than two years ago.
Have a co-debtor on a personal debt. If you file for Chapter 7 bankruptcy, your creditor will go after the co-debtor for payment. If you file for Chapter 13 bankruptcy, the creditor will leave your co-debtor alone, as long as you keep up with your bankruptcy plan payments.
You have a tax debt. If a large part of your debt consists of federal taxes, what happens to your tax debts may determine which type of bankruptcy is best for you?
The main purpose of a Chapter 13 Bankruptcy is to enable a debtor to retain certain assets that would otherwise be liquidated by a Chapter 7 Bankruptcy Trustee. In most cases, you can keep your home and your car under either plan. However, under Chapter 7 Bankruptcy, you wouldn't be able to keep your rental properties, antique gun collections, etc. For consultations with Bankruptcy attorneys or to know more about Chapter 13 Bankruptcy, you can call (925) 683-0464 or log on to: www.korblaw.com