West Palm Beach Bankruptcy Lawyer

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is different from Chapter 7 in that the debtor’s debts are reorganized instead of being liquidated. This type of bankruptcy is meant as a sort of debtor rehabilitation, in which the income receiving debtor repays his or her debts under a court approved plan. This, like anything else, has both advantages and disadvantages.

Some of the disadvantages of filing for bankruptcy under Chapter 13 include the inability of the debtor to receive credit without permission from the bankruptcy court. Also, just like under Chapter 7, the bankruptcy stays on the debtor’s credit report for up to 10 years. After the debts have been repaid, it may become more difficult for the debtor to receive credit. This, however, varies case by case.

There are also advantages to filing under Chapter 13 instead of Chapter 7. Under Chapter 13, the debtor can avoid foreclosures. The debtor can also have an accelerated mortgage reinstated after the bankruptcy plan is completed. Certain types of debts that cannot be discharged under Chapter 7 can be discharged under Chapter 13. Filing under Chapter 13 can also allow you to avoid collection activities against co-signers who are not filing for bankruptcy. This lasts for the entire life of the case.

Contact a West Palm Beach Bankruptcy Lawyer

If you are considering bankruptcy or would like more information on Chapter 13 bankruptcy, please contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates at 561.353.2800.