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Filing for Bankruptcy: Choosing Between Chapter 7 and Chapter 13
I’m considering filing a Chapter 13 bankruptcy. Do I have to include all my debts?
When you file any type of bankruptcy case, you must list all of your debts and all of your assets. In Chapter 13, however, you can often propose a plan that treats debts differently depending on the type of debt.
For example, the plan may classify a cosigned debt to be paid with interest, while paying little or nothing to other unsecured creditors. Long-term debts, such as a home mortgage, can also be treated differently than other secured debts. The plan may provide that any arrearage (back payments) be caught up through the plan, but the future payments be made by you, rather than through the plan.
What cannot be done in a Chapter 13 plan is to treat similar types of debts differently. For example, you would not be allowed to pay one particular credit card debt in full, while paying little or nothing to other credit card debts.
Many people are concerned about how a bankruptcy will affect a cosignor on a car loan or other debt. Leaving the debt out is not an option. However, In Chapter 13, there is a “codebtor stay” which prevents a creditor from trying to collect from a codebtor while the debt is being paid through the plan. This gives you an opportunity to pay the debt under the protection of the Court without having to worry that the codebtor will be sued, garnished or harassed about the debt.
An experienced bankruptcy attorney will go over all of your debts, and discuss with you how they would be treated in the plan. If you are considering bankruptcy, it is critical that you get advice from a qualified and experienced attorney. Bankruptcy is a complicated and specialized area of the law. Don’t settle for vague or uncertain answers to your questions.
Other Frequently Asked Questions:
- Are my student loans dischargeable in bankruptcy?
- Can a Chapter 7 bankruptcy save my home from foreclosure?
- Can bankruptcy help my credit score?
- Can bankruptcy help with my income tax obligation?
- Can bankruptcy protect my workers compensation settlement funds?
- Can I discharge my old tax debt in bankruptcy?
- Can I file for social security disability while I’m still working?
- Can I receive workers compensation benefits if I was injured before or after clocking out?
- Can my re-enlistment bonus be discharged in bankruptcy?
- Can the bankruptcy trustee in my case seize the funds in my bank account?
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- Chapter 7 Basics
- Get help filing your income tax returns for free!
- How can I stop debt collectors from harassing me and my family?
- How do I decide if bankruptcy is necessary?
- How do I know if bankruptcy is the right choice for me?
- How does the foreclosure process work in Georgia?
- How long does a bankruptcy case take?
- How long must I live in this area before I can file bankruptcy here?
- I cosigned a debt for a friend and now he won't pay. What can I do?
- I was fired after being hurt on the job. Can I still file for workers compensation?
- I was injured at work. Can I sue my employer?
- I was terminated from my job after a work injury. Now my condition has worsened. What are my options?
- I’m considering filing a Chapter 13 bankruptcy. Do I have to include all my debts?
- I’m starting to think I may have to file for bankruptcy. Where do I start?
- If I file bankruptcy, can I keep my cars and motorcycles?
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- My car has been repossessed. Can bankruptcy help me get it back?
- My Chapter 13 case was dismissed. Can I file a new case and protect my property?
- My doctor released me to light duty, but my employer is insisting I do more strenuous work. What should I do?
- My ex assumed our joint debts as part of our divorce settlement. Now he's filed bankruptcy. What can I do?
- My house is being foreclosed – What can I do?
- My workers comp doctor has released me to light duty work. Can my employer cut off my weekly benefits?
- My workers compensation doctor says I can return to work, but I can’t do the job. What can I do?
- Ripped off by a debt settlement company?
- Social security benefits — Can a creditor garnish my bank account and seize my social security funds?
- The trustee has filed a motion to dismiss my Chapter 13 case. What are my options?
- What can I do to improve my credit score?
- What to expect: First credit counseling course
- What to expect: free bankruptcy consultation
- What to expect: Second credit counseling course
- What to expect: Your next appointment
- When is my bankruptcy case closed by the court? Is it possible to reopen the case?
- Where would my bankruptcy case be filed, and where would the hearings be held?
- Will I have to sell my primary home, rental property or vacation home if I file for bankruptcy?
- Will paying off an old debt raise my credit score?
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Morgan & Morgan attorneys can help settle your debts such as credit card debt, auto loans and mortgage debt. Contact us if you need assistance with baknruptcy or have any questions about the process. No problem is too big or too small for us to help.