Chapter Thirteen? - LegalHelpForum.com

heretoday · 11-06-2009, 01:52 PM

At what point in a personal bankruptcy is it better to not try for a Chapter-13 type (where you pay your creditors back in court-sanctioned payments), and go for the regular bankruptcy where your debts are just written off?

YB · 11-06-2009, 07:15 PM

The answer to this question depends on your income level and your assets. If you have very low income and no assets, you would probably be better off filing for Chapter 7 bankruptcy. There is certain property that is exempt from creditors under Chapter 7 but a house is not one of them.

If you do own real estate, you might want to consider Chapter 13. Chapter 13 Bankruptcy allows you to create a plan to pay back your creditors in a 3 to 5 year time period. The major advantage of Chapter 13 is that it stops foreclosure proceedings and allows individuals to reschedule their secured debts.

You should consult an attorney who can evaluate your situation and properly advise you of which way to proceed.

Taggart · 11-07-2009, 09:57 AM

I've known a few people who've filed for bankruptcy but I'm not sure of their specific details. They all seem to have moved on successfully in their personal finances, I'd say.

Do you think some advisers are inclined to urge people into the wrong type of bankruptcy filing? I'm not sure exactly how they make their money working with people.

YB · 11-08-2009, 06:58 PM

That is highly unlikely. An attorney who incorrectly and purposely advised someone to file under the wrong chapter would face civil and criminal sanctions and penalties.

11-06-2009, 01:52 PM	#1 (permalink)
heretoday Junior Member Join Date: Nov 2009 Posts: 18	Chapter Thirteen? At what point in a personal bankruptcy is it better to not try for a Chapter-13 type (where you pay your creditors back in court-sanctioned payments), and go for the regular bankruptcy where your debts are just written off?

11-06-2009, 07:15 PM	#2 (permalink)
YB Administrator Join Date: Sep 2009 Posts: 25	The answer to this question depends on your income level and your assets. If you have very low income and no assets, you would probably be better off filing for Chapter 7 bankruptcy. There is certain property that is exempt from creditors under Chapter 7 but a house is not one of them. If you do own real estate, you might want to consider Chapter 13. Chapter 13 Bankruptcy allows you to create a plan to pay back your creditors in a 3 to 5 year time period. The major advantage of Chapter 13 is that it stops foreclosure proceedings and allows individuals to reschedule their secured debts. You should consult an attorney who can evaluate your situation and properly advise you of which way to proceed. Legal Help Forum I am not an attorney and this is not legal advice.

11-08-2009, 06:58 PM	#4 (permalink)
YB Administrator Join Date: Sep 2009 Posts: 25	That is highly unlikely. An attorney who incorrectly and purposely advised someone to file under the wrong chapter would face civil and criminal sanctions and penalties. Legal Help Forum I am not an attorney and this is not legal advice.

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11-07-2009, 09:57 AM	#3 (permalink)
Taggart Junior Member Join Date: Nov 2009 Posts: 23	I've known a few people who've filed for bankruptcy but I'm not sure of their specific details. They all seem to have moved on successfully in their personal finances, I'd say. Do you think some advisers are inclined to urge people into the wrong type of bankruptcy filing? I'm not sure exactly how they make their money working with people.

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