Chapter 13: The Road Less Filed
Most bankruptcies today are filed under Chapter 7 of the federal Bankruptcy Code. However, If
you make too much money to qualify, you may have to file under Chapter 13. Many people are
not familiar with Chapter 13...
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Chapter 13: The Road Less Filed
Most bankruptcies today are filed under Chapter 7 of the federal Bankruptcy Code. However, If
you make too much money to qualify, you may have to file under Chapter 13. Many people are
not familiar with Chapter 13 requirements, which differ noticeably from Chapter 7. There are
certain advantages and disadvantages to a Chapter 13 filing.
Chapter 13 is what is referred to as a “reorganization” bankruptcy, as opposed to a Chapter 7,
which is a “liquidation”. This means that Chapter 13 debtors still have some income and can use
it to pay off creditors on a set schedule, as opposed to simply throwing themselves upon the
proverbial mercy of the court. If you have too much money to be able to file a Chapter 7, this is
your only choice. However, some people do choose to file a Chapter 13, as it does have some
benefits that a Chapter 7 filing does not.
Benefits of a Chapter 13 Filing
There are three main advantages to filing a reorganization as opposed to a liqui
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