subject: Reasons To File For Chapter 13 Bankruptcy [print this page] You may be considering chapter 13 bankruptcy even though there are other chapters you could likely use. However, there are some benefits of 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 file if you make too much money, but chapter 13 bankruptcy does not have that requirement. This is why you should choose this route if you make more than the median income for your state. In fact, you have to have enough income to pay back many of your creditors when you choose this option, so this may be the right decision for you if you have a little disposable income after paying the bills that you are not including in the case. You should talk to your lawyer 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 back some of your creditors rather than having all your debt wiped out, so you get a little more leeway than you would during chapter 7. You just have to make sure you can continue to pay for these assets on time or you may lose them. For instance, if you have a house or car you want to keep, you need to make your payments punctually or you could end up losing them.
In addition, 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 instance, any money you got through fraud or fines you have gotten from the government have to be paid for at least partially, not wiped out completely. If you cannot pay them in full, you can arrange to pay over three to five years, and once you are done paying the agreed upon monthly amount, the rest of the bill will be wiped out. Talking to an attorney 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 before you even prepare to file. This is because you do not want to waste time on a case you are not eligible to take part in. You need to make sure you qualify and that it will benefit you as much as you think it will.
