When is chapter 13 preferable to chapter 7 for a debtor?
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, as shown by the MEANS TEST, wherein the assisted person’s (debtor’s) current monthly income (CMI) is such that he or she could pay a trustee at least $100.00 per month over a period of 60 months, for the payment of unsecured creditors. • 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. Return to Top 4. How does chapter 13 differ from a private debt consolidation service? In a chapter 13 case, the bankruptcy court can provide aid to the debtor that private debt conso
• 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; • has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so. • Under the new means test, if the your combined gross income is greater than the median family income in our state, the law may require you to file a Chapter 13 plan and pay off some of those debts. [Back to top] • How does Chapter 13 differ from a private debt consolidation service? In a Chapter 13 case, the bankruptcy court in Seattle can provide aid to the debtor that private debt consolidation services cannot provide. For example, the court has the authority to pr
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?
