Despite the challenges and rigors of successfully calculating, filing, and completing a Chapter 13 payment plan, there are several situations where a Chapter 13 may be the best solution for you and your family. A free consultation with an experienced bankruptcy attorney will help you make this decision.
Chapter 13 cases should be considered by individuals or married couples who are in need of bankruptcy, and :
1. Want to stop a foreclosure proceeding, or cure pre-bankruptcy arrears on their home.
2. Want to prevent the repossession of a vehicle, or recover property that has already been taken by a creditor.
3. Can afford to pay their debts, but has been unsuccessful in getting creditors to agree to a reasonable repayment plan.
4. Want to show future creditors that they made their best efforts to repay their debts by reorganizing under a Chapter 13.
5. Cannot qualify for a Chapter 7 due to the existence of a prior bankruptcy filing.
6. Cannot qualify for a Chapter 7 due to the debtors earnings being too high.
7. Want to stop late charges and interest from accruing on credit cards in order to meet their financial obligations.
8. Want to protect a codebtor (co-signer) on an obligation by invoking the §1301 stay.
9. Want to pay the fair market value of a dependable car purchased more than 30 months ago.
10. Want to reduce the high interest rate on a vehicle loan for a vehicle that they wish to keep.
11. Owe taxes that cannot be discharged in bankruptcy, but can be paid off in a Chapter 13.
12. Owe debts that cannot be discharged in Chapter 7, but are dischargeable in a Chapter 13.