Chapter 13 Bankruptcy to Retain Assets
There are a number of good reasons to file for a chapter 13 bankruptcy, also called a wage-earners bankruptcy. One of those reasons is that you are able to retain more assets than you would be able to retain if you file for a chapter 7, while still achieving debt consolidation. Another is that you can cure mortgage arrearages and stop a foreclosure. There are advantages and disadvantages to each type of bankruptcy filing. As your bankruptcy attorney, I'll take a close and detailed look at your financial situation and make a recommendation.
Pros and Cons of a Chapter 13 Wage Earner Bankruptcy
Books have been written on the subject, so please consider the pros and cons listed below as an overview of the reasons why a chapter 13 filing may be the right choice for you. Part of my job as your bankruptcy lawyer is to make sure that the course of action you choose is the right one for you.
The positive aspects of a chapter 13 bankruptcy:
- When you have a pending foreclosure and an upside down mortgage (you owe more than your house is worth), a chapter 13 may let you discharge, or liquidate, any second or third mortgages on your home.
- You can reduce your car payments with a chapter 13 in situations where the car is worth less than what you owe. You can also keep a car worth more than the $3,000 allowed under a chapter 7 bankruptcy.
- If your net worth is above that which is allowed by a chapter 7, then a chapter 13 could be your best option for a fresh start.
- If you have back taxes, they must still be paid, but the penalties and interest are adjusted and may be forgiven.
- You may keep non-exempt property when you file a chapter 13.
The downsides of a chapter 13 bankruptcy:
- It takes 3-5 years to complete and during that time, you will have ongoing contact with your bankruptcy trustee.
- You must fulfill the entire repayment plan in order for the agreed upon debts to be liquidated.
As you can see, there are many considerations in your decision to file a chapter 7 or chapter 13 bankruptcy.
Call 888-429-9637 for a Free Initial Consultation
I offer a phone consultation for potential chapter 13 personal bankruptcy clients. My law office is conveniently located in Portland, Oregon, although I represent clients from a much wider area. I look forward to acting as your attorney and helping you with your debt relief issues.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
