Why try to pay creditors back in Chapter 13 Bankruptcy, why not just file Chapter 7 Bankruptcy?

If your income is above a certain level,  based on the size of your household, the law requires payment to your creditors in a Chapter 13 repayment plan.

There may also be times when you need to pay creditors back, for instance, if you have large tax debts or mortgage arrears, you may need to file a Chapter 13 bankruptcy to pay those debts.

If you have a car that has just been repossessed and you need to get it back, you will need to file a Chapter 13 bankruptcy within 10 days after the repossession to get the car back.

If you have filed a Chapter 7 bankruptcy in the last 8 years, you are not eligible to receive a discharge in a Chapter 7 bankruptcy. However, you can file a Chapter 13 bankruptcy.

You may have assets that need to be protected and you cannot do that in a Chapter 7 bankruptcy.You can protect those assets in a Chapter 13 bankruptcy.

The reasons for filing a Chapter 13 bankruptcy are as diverse as the individuals that file them. While some attorneys only file Chapter 7s or Chapter 13s and will try to convince you that you need to file which ever type of case they like to handle, Mrs. Pfeiffer is experienced in both Chapter 7 and Chapter 13 cases. She will recommend the best course of action for you and tell you why, even if it is not to file a bankruptcy.

Edrie Pfeiffer
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Edrie Pfeiffer, Bankruptcy & Divorce Attorney