This guest blog entry was written by David Chang of Chang & Carlin, LLP. Chang & Carlin offer bankruptcy and real estate legal services for Chicago and its suburbs. Read David Chang's blog at http://changandcarlin.blogspot.com/
Many debtors view Chapter 7 bankruptcy as the "better" type of bankruptcy to file, and that Chapter 13 is forced upon them by the courts. However, filing bankruptcy under Chapter 13 has many benefits.
Here are 5 major reasons why people may choose file for Chapter 13 bankruptcy:
- Chapter 13 has protections designed to stop a foreclosure or repossession.
- Chapter 13 bankruptcy can protect an asset that would otherwise not be protected in Chapter 7, and would be sold to pay creditors.
- The debtor makes too much money to file for Chapter 7, and would not be able to file otherwise.
- The debtor has recently had debts discharged in a Chapter 7 case and is not eligible to file again.
- Chapter 13 can consolidate debts that would not be dischargeable in a typical Chapter 7 bankruptcy case.
Tags: chapter 13 bankruptcy, filing bankruptcy
This entry was posted on Tuesday, September 29th, 2009 at 9:59 am and is filed under Setting the Record Straight about Bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.