When Chapter 13 Bankruptcy is Better than Chapter 7
In most cases, the two bankruptcy options for people with overwhelming amounts of personal debt are Chapter 13 and Chapter 7. When an individual is considering filing for bankruptcy, it is often immediately assumed that filing under Chapter 7 is a better option because Chapter 13 requires a partial payment of debt. However, this is not always the case.
Each bankruptcy is different depending on the innumerable factors that can influence the legality and court rulings regarding debt forgiveness. Knowing your options about which bankruptcy to file for and when you should file are important steps in regaining your financial stability.
When Chapter 13 May Be Better
There are a number of reasons that could make Chapter 13 bankruptcy a more beneficial option for your financial situation than Chapter 7. The following factors may make Chapter 13 bankruptcy a better decision for your future:
- You are not eligible for Chapter 7
- You are behind on mortgage or car loan payments
- You have tax obligations, student loans, or other debts that cannot be discharged in Chapter 7
- You have a sincere desire to repay your debts
- You have nonexempt property that you want to keep
- You have a co-debtor on a personal debt
The bankruptcy process can be complex and involve many financial and legal decisions. These decisions require sincere consideration due to their long-term impact on your financial future. By hiring a bankruptcy attorney to discuss your options, you will be better equipped to make these important choices.
Contact a Chapter 13 Bankruptcy Attorney in Iowa
If you are not sure what type of bankruptcy is appropriate for your situation, the Cedar Rapids bankruptcy attorneys at Hong Law, PLC, can help you understand your options. We know that filing for bankruptcy can be confusing and stressful; with the assistance of experienced legal attorneys, our team hopes to make this process easy and effective for you. Please call (319) 294-5853 for more information on how our bankruptcy team can help you.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office