When is a Chapter 13 Plan Preferable to Chapter 7 bankruptcy?
Chapter 13 is favored in comparison to Chapter 7 bankruptcy in four situations: • When you have the desire and the income to pay your debts, but need extra time or the court’s protection; • When you have valuable non-exempt assets, which may be seized by the chapter 7 bankruptcy trustee • If you owe certain tax debts, and • If you have filed a Chapter 7 bankruptcy in the last eight years
