Choosing Chapter 13 Over Chapter 7 Bankruptcy

: Chris Lee Law Firm

  Filed under: Chapter 13

ch 13 over ch 7

While Chapter 7 is the more popular form of bankruptcy, effectively eliminating all of your qualifying debt without having to make a repayment plan. Chapter 13 bankruptcy with a court-approved repayment plan offers more flexibility and more options than Chapter 7.

Keep Your Assets

Chapter 13 bankruptcy allows debtors to catch up on missed payments and keep their cars and houses as well as the rest of their assets. Often in chapter 13, you will pay little or nothing to your unsecured creditors in your repayment plan. When filing Chapter 7, you could potentially lose your house or your car if they are not covered under the exemption rules.

Frequently in Chapter 13 bankruptcy, car payments can be lowered due to the change of the interest rate on the vehicle loan. Chapter 7 does not offer this choice.

Four Years Instead of Eight

When you receive a Chapter 7 discharge, you must wait eight years before you can obtain another discharge to eliminate your debt. With Chapter 13, you may only need to wait four years to file bankruptcy again.

Chapter 13 bankruptcy also may look more favorable to future lenders when they see that you paid back your debt over time, instead of wiping it out as in Chapter 7.

If you have questions whether Chapter 7 or Chapter 13 is the best choice for you, contact a Dallas bankruptcy attorney to discuss your options.

Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information