When is chapter 13 preferable to chapter 7 for a debtor?
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 for a discharge under chapter 7, (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. would like to save his or her home from foreclosure, 2. 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, 3. has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, 4. is not eligible for a discharge under chapter 7, 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 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 nonexempt 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 discharge under Chapter 7, having received a discharge under Chapter 7 during the previous 6 years, (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 to do so.
Chapter 13 is usually preferable for a person who: • 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, • has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, • is not eligible for a discharge under chapter 7, • has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or • 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 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 for a discharge under chapter 7, (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.
Related Questions
- Why would a debtor choose to pay creditors something in a Chapter 13 proceeding rather than get discharged outright in a Chapter 7 proceeding?
- Once a chapter 7 or chapter 13 case is completed, are there other requirements before a debtor receives a discharge?
- When is chapter 13 preferable to chapter 7 for a debtor?
