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When Is Chapter 13 Better For Me Than Chapter 7?

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There are various consequences to dealing with overwhelming debt. From the threat of losing your home to dealing with calls from creditors at all hours, debt can have a significant negative impact on your life. In order to effectively deal with your debt, you may be consider the two main options for consumer bankruptcy, either Chapter 7 or Chapter 13. 

Chapter 7 is a popular choice for many Florida consumers. One of the main reasons for this is the fact that it generally takes less time to complete. However, while certain people could benefit from this option, Chapter 13 may be a better choice for your unique financial situation. Before you file, you would be wise to carefully consider the benefits of each option in terms of your individual circumstances.

Is Chapter 13 a better choice for you?

The right type of consumer bankruptcy for you depends on the types of debt you owe and your income. Chapter 7 is a liquidation bankruptcy. This means that your assets are liquidated in order to pay off your debts. While some of your assets are exempt, many others are not.

On the other hand, Chapter 13 could allow you to keep what is most important to you, such as your home. A Chapter 13 bankruptcy allows you to reorganize your debts so that you can afford payments while keeping your assets. There are other reasons you may benefit from a reorganization, including:

  • If you do not qualify for Chapter 7 bankruptcy for any reason, you could still be eligible for Chapter 13.
  • You are able to pay off your debt over time rather than losing all your assets.
  • This could be the right choice if you are facing threats of the repossession of your car or foreclosure of your home.
  • Chapter 13 could be right for you if you have certain debts that are not dischargeable in Chapter 7.
  • This option allows you to keep certain property that would not be exempt in Chapter 7.

Chapter 13 can offer you many benefits, including the possibility of obtaining a better and stronger financial future.

How you can protect your interests

Although it may not seem like it at the time, a better financial future is possible. If you believe you should file for Chapter 13 bankruptcy, you may find it useful to seek a complete evaluation of your case and explanation of your legal options. With the right help and guidance, consumer bankruptcy can help you deal with your debt once and for all, reaching a future that is free from creditor harassment and threats of foreclosure.

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