Why file a Chapter 13 bankruptcy instead of a Chapter 7 bankruptcy

Chapter 13 bankruptcy allows a debtor to keep their assets, such as a home or car, by creating a repayment plan to pay off their debts over a three to five year period. Chapter 7 bankruptcy, on the other hand, requires the debtor to liquidate their assets in order to pay off their debts. Additionally, Chapter 13 bankruptcy can provide an opportunity for a debtor who is behind on mortgage or car payments to catch up on those payments over the repayment plan period, while under Chapter 7 bankruptcy, if a debtor is behind on secured debts (such as a mortgage or car loan), those debts may not be able to be resolved without the debtor losing the property. Additionally, Chapter 13 bankruptcy has a longer time period during which a debtor is protected from creditors, called the automatic stay, which can provide more time for the debtor to get their financial affairs in order.

*This has been prepared by Arthur Ray Law Offices, Memphis, TN using ChatGPT, an artificial intelligence software.

For more info, go to www.filingbankruptcymemphis.com  Arthur Ray Law Offices is a debt relief agency. We help people file bankruptcy under the bankruptcy code for those who qualify under federal law. This is for general information and should not be acted on without the advice of an attorney.