With Chapter 13 bankruptcy, you get to keep all of your property, making it the more appealing option when compared to Chapter 7. While Chapter 7 would have you liquidate your belongings to pay off all your debts, Chapter 13 lets you make a plan and allows you to reorganize your debts and repay them in more manageable amounts according to that plan over the next 3-5 years. Of course, some debts must be fully paid off by that time, such as priority debts and secured debt, but this does allow you more time to deal with them. Other debts might fall under various exemptions and go away entirely.

One of the most common reasons to file for Chapter 13 bankruptcy is to prevent your house from being foreclosed. As mentioned previously, filing for chapter 13 stops most collection actions against you and your property. This means your house will be safe as well. Chapter 7 bankruptcy would have you liquidate as many of your assets as necessary to pay off your debts, including foreclosing your house. Chapter 13 helps you prevent this.

Preventing Harassment

One of the most appealing things about filing either for Chapter 7 or Chapter 13 bankruptcy is that it puts an automatic stay on creditors’ ability to contact you regarding your debts. Many creditors will call or email you multiple times a day in an attempt to get the money you owe them, even if you don’t have it. Filing for Chapter 13 or Chapter 7 bankruptcy fully prevents them from collecting anything you own and allows you to stay on your feet while getting everything in order. 

If you or your loved one is currently dealing with creditors or going through bankruptcy on their own, give us a call and we will help get your life back on track.