What are the benefits of filing a Chapter 13 bankruptcy?
There are many benefits to filing a Chapter 13 bankruptcy, as opposed to a Chapter 7 bankruptcy. These are only some of the benefits of Chapter 13 when compared to Chapter 7. • “Super-Discharge.” The discharge in Chapter 13 cases is broader than the Chapter 7 discharge. For example, the Chapter 13 discharge includes debts related to violation of federal securities law, many fines or penalties owed to governmental units, and obtaining credit by submitting inaccurate information to the creditor, none of which would be dischargeable in a Chapter 7 case. • Avoid Foreclosure. Chapter 13 allows debtors who have an arrearage on a mortgage to pay off the arrearage through a Chapter 13 Plan. As long as the plan is confirmed and all payments are made, the mortgage holder cannot foreclose on the property. In Chapter 7, the secured creditor will almost always be granted relief from stay to foreclose on the property. • Lien-Stripping. Where the amount of a secured debt is more than the value of the
