CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Is Chapter 13 Bankruptcy the Best Option for You?

Deciding that bankruptcy is the right solution to help you with your financial struggles is a big commitment. Many people assume that filing for bankruptcy will destroy their life and cost them everything they own, which isn’t the case. Though Chapter 7 bankruptcy might result in the loss of your assets, Chapter 13 bankruptcy allows you to protect your assets and even pay back a good portion of the debt you’ve accumulated.

But how do you know it’s the right option for you?

Chapter 13 is sometimes called “wage earners bankruptcy” because it requires a person have an income. In this type of bankruptcy, you create a repayment plan and in order to meet that obligation, you need income. It offers many of the same protections as Chapter 7 bankruptcy, but requires more commitment from you for a longer time.

What’s the Point of Filing for Bankruptcy If I’m Forced to Repay My Debts?

It makes sense to question why you’d choose Chapter 13 over Chapter 7, considering the latter releases you from the majority of your debt obligations. After all, why pay money to creditors if you can create an arrangement in which you get to keep your money and be released from your debt?

The truth is Chapter 13 offers protections that are not offered by Chapter 7 – something that might not be important to some people, but is essential to others. There are plenty of people who would not file for bankruptcy if their only option was to file for Chapter 7.

Chapter 13 provides flexibility to deal with your financial issues. For instance, you’re given time to pay debs that wouldn’t be discharged in a bankruptcy, such as past due child support or tax debts. It also makes it possible to cure mortgage defaults. Chapter 13 also allows you to include some marital property debts. These are all things that likely wouldn’t happen if you chose to file for Chapter 7.

In some ways, Chapter 13 is the best of all worlds.

It provides many of the protections of Chapter 7, as well as ones that aren’t a part of Chapter 7. It also includes the advantages of a payment arrangement you might make with a creditor outside of bankruptcy, only it comes with the benefit of guaranteeing that creditor is legally bound to that plan.

Chapter 13 is about debt management and it has the added bonus of being court-enforced. This not only means you have obligations, it also means you’re protected.

You can read more about the differences between Chapter 7 and Chapter 13 bankruptcy in this article from Experian.

How Do You Know Chapter 13 is a Good Option for You?

There are a few questions you can ask to help you determine if Chapter 13 is your best bet. For instance:

  • Do I have debt that will not be discharged in a Chapter 7 filing?
  • Do I have liens that are more than the value of the asset?
  • Have I fallen behind on mortgage or car payments?
  • Are you assets worth more than the exemptions available in Chapter 7?
  • Would you income could trigger an objection by your creditors?

Determining whether Chapter 13 is going to work for you can be a complicated process. We can help. For more information or to schedule a consultation to discuss your bankruptcy options contact the Law Office of Robert M. Geller at 813.254.5696.

Tampa Bankruptcy Law Blog

Can I Move Out of State after Filing for Bankruptcy?

Can I Move Out of State after Filing for Bankruptcy?

Most people know there are limitations on traveling and moving if someone is accused of committing a crime, but what...
Read More
What Should I Know about College Loan Debt?

What Should I Know about College Loan Debt?

If you’re thinking about borrowing money to pay for college or your child is thinking about college and you know...
Read More
Should You Continue Paying Your Debts after You Decide to File for Bankruptcy?

Should You Continue Paying Your Debts after You Decide to File for Bankruptcy?

One of the most common questions bankruptcy lawyers get from clients is whether or not they should keep making payments...
Read More
Debt in Collections? Five Things You Shouldn’t Do

Debt in Collections? Five Things You Shouldn’t Do

Having a debt be turned over to collections is not the end of the world. Even those who are careful...
Read More
How Can I Avoid a Second Bankruptcy?

How Can I Avoid a Second Bankruptcy?

Bankruptcy is viewed as a solution to serious money challenges. It offers a brand new start and helps you get...
Read More
Will Bankruptcy Help Protect My Vehicle from Repossession?

Will Bankruptcy Help Protect My Vehicle from Repossession?

The idea of bankruptcy might be intimidating, but filing can actually help you in a variety of ways. One of...
Read More
What is the “Wild Card Bankruptcy Exemption”?

What is the “Wild Card Bankruptcy Exemption”?

There are a lot of terms that arise when you’re considering bankruptcy. It’s important to understand what each thing means...
Read More
Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

A court ordered judgment against you related to debt can wreak havoc on your life, but it might be possible...
Read More
Understanding Credit: What Factors Affect Your Score

Understanding Credit: What Factors Affect Your Score

Dealing with financial problems can be one of the most difficult challenges you’ll ever face. Not only is it overwhelming,...
Read More
Health Issues Drove Me to Bankruptcy and I’m Still Getting Medical Bills: Can Bankruptcy Help?

Health Issues Drove Me to Bankruptcy and I’m Still Getting Medical Bills: Can Bankruptcy Help?

Medical issues are one of the most common reasons people file for bankruptcy. In most cases, health emergencies arise unexpectedly...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2017 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online     Bankruptcy Courses    

Office Locations

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405
Maps & Directions


Tampa Law Office Map

Satellite Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: 727-532-3939
Maps & Directions


Map and Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.