Chapter 13 bankruptcy allows an individual who has a regular income, but is struggling to keep up with his current debt repayment agreements, to enter into a repayment plan that works with his budget.
With a Chapter 7 bankruptcy discharge all included debts are wiped out, and you don’t have to repay them. So the question naturally arises as to why anyone would choose to file a Chapter 13 and repay a portion of his debts. Chapter 13 can offer many advantages over Chapter 7. For example, if you have significant equity in your home and want to file Chapter 7 the judge may order you to sell your home in order to pay your creditors. In this situation Chapter 13 may allow you to keep your home.
Generally, those who choose to file Chapter 13 do so due to reasons of equity, as listed above, or because their monthly income is too high for them to qualify for a Chapter 7 filing.
Call our office at (804) 655-0502 to speak with a Richmond bankruptcy lawyer about your individual case.
Trying to figure out what class of bankruptcy to file can be complicated. Speak to our Richmond bankruptcy attorney at Bruce W. White, P.C. today to discuss your unique situation. The over-the-phone consultation we provide is free, so you have nothing to lose.
Contact us today to find out more about how we can assist you and get you out from under your debt.