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What are the possible advantage of Chapter 13?

Being in debt is stressful. When a Tennessean cannot afford to pay debt, the individual may begin to feel depressed or worthless, and may feel like there is no way out. However, people should understand that there might be ways out.

One way to do this is to consider a Chapter 13 bankruptcy filing. This is a filing that allows a debtor to reorganize debts, rather than "liquidating" their assets, as would be done in a Chapter 7 filing. There may be advantages to pursuing one type of bankruptcy over another. In this post, we will take a very brief look at some of the potential advantages of a Chapter 13 bankruptcy.

First, is the potential to keep large assets, such as a home, even if mortgaged, as long as it has not already been successfully foreclosed. In these cases, as long as the debtor sticks to the approved repayment plan, he or she will be able to keep the house.

A second advantage is for those with co-signed debt. The co-signer will not be liable to the creditor. Further, more types of debts are considered dischargeable under a Chapter 13 than under a Chapter 7. Finally, there may be more time to pay off non-dischargeable debts, like taxes or student loans.

The above list is not exhaustive, and there may be other benefits to filing a Chapter 13 bankruptcy. In addition, this post does not touch on the disadvantages of a Chapter 13 versus Chapter 7. Suffice to say, every situation is different, and those thinking about bankruptcy may wish to consider an experienced Tennessee attorney.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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