Chapter 13 bankruptcy is a reorganization of your finances whereby you pay back part of your debts over a three or five year period. Often, people confuse it with a debt consolidation plan. In truth, you only pay a small part of your actual debts in most cases. Thus, it provides affordable debt relief to families who might not qualify for Chapter 7 (where most of your debts are simply wiped away).

Even if you do qualify for Chapter 7, a good bankruptcy attorney would never tell you to file Chapter 7 without a full understanding of your financial goals. Some attorneys claim that they “don’t handle Chapter 13 bankruptcies” — usually because the complexity is beyond their expertise. But if you don’t get sound advice on Chapter 13 bankruptcy, you very well could be missing your shot at a true “fresh start.”

Why file Chapter 13 bankruptcy if you qualify for Chapter 7? Because CHAPTER 13 BANKRUPTCY WILL FIX WHAT CHAPTER 7 CANNOT FIX. Fixing serious IRS problems or dealing with an angry former spouse are two very good reasons to file Chapter 13 Bankruptcy . . . but there are many other good reasons:

  1. STOP FORECLOSURE. KEEP YOUR HOME
  2. ELIMINATE YOUR SECOND MORTGAGE IN MANY CASES
  3. RESTRUCTURE TAX DEBT WITH NO PENALTIES OR INTEREST
  4. PAY THE VALUE OF YOUR CAR IN MANY CASES, NOT WHAT YOU ACTUALLY OWE ON THE CAR
  5. ELIMINATE DIVORCE OBLIGATIONS (BUT YOU CANNOT ELIMINATE CHILD SUPPORT OR MAINTENANCE)
  6. STOP CONTEMPT OF COURT PROCEEDINGS FOR CHILD SUPPORT OR MAINTENANCE
  7. PAY DELINQUENT CHILD SUPPORT OR MAINTENANCE OVER A FIVE YEAR PLAN

More information about Chapter 13:  https://www.wamorrislaw.com/chapter-13/