When is a chapter 13 case preferable to a chapter 7 case?
Chapter 13 is usually preferable for a person who – (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, (3) is not eligible under means testing to maintain a chapter 7 case, (4) is not eligible for a chapter 7 discharge, (5) has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or (6) has sufficient assets with which to repay most of his or her debts, but needs temporary relief from creditors in order to do so.
Chapter 13 is usually preferable for a person who (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable non-exempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, (3) is not eligible for a chapter 7 discharge, (4) has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or (5) has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so.
Chapter 13 is usually preferable for a person who – (1) wishes to pay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexcempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, (3) is not eligible for a chapter 7 discharge, (4) has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or (5) has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so.
ANSWER – Chapter 13 is usually preferable for a person who – (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, (3) is not eligible under means testing to maintain a chapter 7 case, (4) is not eligible for a chapter 7 discharge, (5) has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or (6) has sufficient assets with which to repay most of his or her debts, but needs temporary relief from creditors in order to do so.
Chapter 13 is usually preferable for a person who wishes to repay all or most of his debts and has the income with which to do so within a reasonable time. Chapter 13 is usually preferable for a person who has valuable property which may be lost in a Chapter 7 Case. Chapter 13 is usually preferable if a person is not eligible under means testing or other reasons to receive a discharge in a Chapter 7 Case. Chapter 13 is usually preferable if a person has debt that cannot be discharged in a Chapter 7 case such as child support, taxes, student loans, etc.
