When Chapter 13 May Be Your Only Option

There are many reasons why debtors choose to file bankruptcy, but when it comes to choosing the type of bankruptcy they want to file for, there is usually little leniency involved. Most prefer to file for a Chapter 7 bankruptcy, if possible; but there are certain criteria laid out for both types of bankruptcy that make Chapter 13 bankruptcy a better choice for some. These situations may include:

• When you have assets that you want to keep that are worth more than the exemptions allowed under a Chapter 7 bankruptcy. This may include your home, car, boat, or anything else of substantial value.
• The bulk of your debt includes recent taxes, and child support, which are not dischargeable under Chapter 7. Either way, these debts have to be paid. Also, if you haven’t filed taxes in several years, you will likely have a lot of back-owed taxes that will not be discharged under a Chapter 7.

Even if you are not able to file for Chapter 7 due to these guidelines, Chapter 13 can still help you reorganize your debt, possibly lower some of it, and get on a payment schedule that gets the creditors off your back.

If you are considering bankruptcy, contact the offices of Allmand and Lee at (214) 265-0123 to discuss your options. They have helped other good people through bad times and they can do the same for you, too.