{"id":5885,"date":"2023-09-14T08:29:54","date_gmt":"2023-09-14T08:29:54","guid":{"rendered":"https:\/\/cutlerbankruptcy.com\/?p=5885"},"modified":"2023-09-20T08:33:28","modified_gmt":"2023-09-20T08:33:28","slug":"when-chapter-13-is-better","status":"publish","type":"post","link":"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/","title":{"rendered":"When Chapter 13 Bankruptcy Is Better Than Chapter 7 Bankruptcy"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Resolve_your_debts_through_Chapter_13_bankruptcy\"><\/span><b>Resolve your debts through Chapter 13 bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-663c705ab56da\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-663c705ab56da\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#Resolve_your_debts_through_Chapter_13_bankruptcy\" title=\"Resolve your debts through Chapter 13 bankruptcy\">Resolve your debts through Chapter 13 bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#Chapter_7_Bankruptcy_vs_Chapter_13_Bankruptcy\" title=\"Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy\">Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#Chapter_7_Bankruptcy\" title=\"Chapter 7 Bankruptcy\">Chapter 7 Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#Chapter_13_Bankruptcy\" title=\"Chapter 13 Bankruptcy\">Chapter 13 Bankruptcy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#When_is_Chapter_13_Bankruptcy_Better_Than_Chapter_7_Bankruptcy\" title=\"When is Chapter 13 Bankruptcy Better Than Chapter 7 Bankruptcy?\">When is Chapter 13 Bankruptcy Better Than Chapter 7 Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#What_are_the_Eligibility_Requirements_for_filing_a_Chapter_13_Bankruptcy\" title=\"What are the Eligibility Requirements for filing a Chapter 13 Bankruptcy?\">What are the Eligibility Requirements for filing a Chapter 13 Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#The_Pros_and_Cons_of_Chapter_13_Bankruptcy\" title=\"The Pros and Cons of Chapter 13 Bankruptcy\">The Pros and Cons of Chapter 13 Bankruptcy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#Pros\" title=\"Pros\u00a0\">Pros\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#Cons\" title=\"Cons\u00a0\">Cons\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/cutlerbankruptcy.com\/when-chapter-13-is-better\/#File_Chapter_13_Bankruptcy_Today\" title=\"File Chapter 13 Bankruptcy Today!\">File Chapter 13 Bankruptcy Today!<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">When faced with insurmountable debts, you might consider filing for bankruptcy to get a fresh start. But one might wonder, how do you choose which chapter to file? Is Chapter 7 better than Chapter 13? Or when is Chapter 13 bankruptcy better than Chapter 7 bankruptcy? In this article, with the help of an <\/span><a href=\"https:\/\/cutlerbankruptcy.com\/\"><span style=\"font-weight: 400;\">experienced bankruptcy attorney<\/span><\/a><span style=\"font-weight: 400;\">, you will learn the difference between Chapter 7 and Chapter 13 bankruptcy, when Chapter 13 bankruptcy is better than Chapter 7 bankruptcy, the eligibility requirements for filing Chapter 13, and the pros and cons of Chapter 13 bankruptcy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are still searching for the right bankruptcy lawyer in Illinois, look no further than Cutler &amp; Associates, Ltd. Our experienced bankruptcy attorney will help you understand the overall concept and provide a holistic and personalized legal approach. We know that facing debt problems can be absolutely frustrating. With our help, you could eliminate your debts! <\/span><a href=\"https:\/\/cutlerbankruptcy.com\/contact-us\/\"><span style=\"font-weight: 400;\">Get a free initial consultation now<\/span><\/a><span style=\"font-weight: 400;\">!<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chapter_7_Bankruptcy_vs_Chapter_13_Bankruptcy\"><\/span><b>Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Determining the differences between Chapter 7 and Chapter 13 bankruptcy should be your first step. Below are their notable differences:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chapter_7_Bankruptcy\"><\/span><b>Chapter 7 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Once you file for Chapter 7 bankruptcy, your creditors will no longer be allowed to make phone calls, and you can discharge your debts<\/span><b> within three to four months <\/b><span style=\"font-weight: 400;\">from the date you filed. While it is true that you might have to sell some of your property to pay your unsecured creditors, you can still, however, <\/span><b>retain some of your personal belongings<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is <\/span><b>no specific debt threshold required for eligibility <\/b><span style=\"font-weight: 400;\">in this type of filing. However,<\/span><a href=\"https:\/\/cutlerbankruptcy.com\/chapter-7-qualifications\/\"><span style=\"font-weight: 400;\"> Chapter 7 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> is typically sought by individuals who have unsecured debts, lack a regular income to cover their living expenses, have no non-dischargeable debts (like alimony and spousal support), and are unable to commit to a repayment plan in the near future. If you&#8217;re considering alternatives, it&#8217;s advisable to consult with a bankruptcy attorney for guidance and assistance.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chapter_13_Bankruptcy\"><\/span><b>Chapter 13 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you do not have substantial debt but have disposable income, our competent bankruptcy lawyer would suggest considering Chapter 13 bankruptcy. In this chapter, you will have a repayment plan tailored to the amount you can afford to pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regardless if your creditors object to the terms,<\/span><b> they can no longer do anything<\/b> <b>once the bankruptcy court approves it<\/b><span style=\"font-weight: 400;\">. In contrast to Chapter 7 bankruptcy, when you opt for Chapter 13, you can lower both the interest rate and the outstanding balance on your car loan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another feature of Chapter 13 bankruptcy is that<\/span><b> you don&#8217;t have to surrender your non-exempt properties<\/b><span style=\"font-weight: 400;\"> since your creditors will be compensated. Once you have fully paid off your debts within the three- or five-year repayment plan, all your debts are eliminated under this filing.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_is_Chapter_13_Bankruptcy_Better_Than_Chapter_7_Bankruptcy\"><\/span><b>When is Chapter 13 Bankruptcy Better Than Chapter 7 Bankruptcy?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/cutlerbankruptcy.com\/how-do-i-qualify-for-chapter-13-bankruptcy\/\"><span style=\"font-weight: 400;\">Chapter 13 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> can be a better option than Chapter 7 bankruptcy in the following situations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You have too much income to qualify for Chapter 7<\/b><span style=\"font-weight: 400;\">: The income limits for Chapter 7 bankruptcy are based on your <\/span><b>state&#8217;s median income.<\/b><span style=\"font-weight: 400;\"> You may not qualify for Chapter 7 bankruptcy if your income is above the median.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You have property you want to keep<\/b><span style=\"font-weight: 400;\">: In Chapter 7 bankruptcy, your non-exempt assets may be sold to pay off your creditors. If you have<\/span><b> property that you want to keep<\/b><span style=\"font-weight: 400;\">, such as your home or car, Chapter 13 bankruptcy may be a better option.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You want to catch up on your mortgage or other secured debt payments<\/b><span style=\"font-weight: 400;\">: In Chapter 13 bankruptcy, you can <\/span><b>create a repayment plan<\/b><span style=\"font-weight: 400;\"> to catch up on your mortgage or other secured debt payments. That can help you avoid foreclosure or repossession.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You have debts that can&#8217;t be discharged in Chapter 7<\/b><span style=\"font-weight: 400;\">: Some debts, such as <\/span><b>child support and student loans<\/b><span style=\"font-weight: 400;\">, cannot be discharged in Chapter 7 bankruptcy. In Chapter 13 bankruptcy, you may be able to repay these debts over time.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_Eligibility_Requirements_for_filing_a_Chapter_13_Bankruptcy\"><\/span><b>What are the Eligibility Requirements for filing a Chapter 13 Bankruptcy?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To be eligible to file for Chapter 13 bankruptcy, you must meet the following requirements:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You must be an individual or a married couple filing jointly<\/b><span style=\"font-weight: 400;\">: Chapter 13 bankruptcy is exclusively available to individuals and married couples filing jointly. Conversely, corporations and limited liability companies (LLCs) are not eligible for Chapter 13 relief; instead, they must opt for <\/span><a href=\"https:\/\/cutlerbankruptcy.com\/qualify-for-chapter-11\/\"><b>Chapter 11 bankruptcy<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You must have a regular income<\/b><span style=\"font-weight: 400;\">: To qualify for Chapter 13 bankruptcy, you must have a <\/span><b>reliable source of income<\/b><span style=\"font-weight: 400;\"> that allows you to make monthly payments under a repayment plan. This plan will be designed to help you gradually pay off your debts over a period of three to five years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Your debts must be less than the Chapter 13 debt limits<\/b><span style=\"font-weight: 400;\">: Chapter 13 bankruptcy imposes specific debt limits. These <\/span><b>limits are adjusted periodically<\/b><span style=\"font-weight: 400;\"> to account for inflation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You must have no previous Chapter 7 discharge<\/b><span style=\"font-weight: 400;\">: If you received a Chapter 7 discharge within the past four years, you may not be eligible for Chapter 13 bankruptcy. Timing is crucial when considering bankruptcy options.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You must complete credit counseling before you file<\/b><span style=\"font-weight: 400;\">: It is a must to complete a credit counseling course before you file for bankruptcy. The credit counseling course will teach you about bankruptcy and help you develop a budget.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In conclusion, understanding the eligibility requirements for filing Chapter 13 bankruptcy is vital when seeking debt relief. These criteria may vary based on your specific circumstances and the latest regulations. It&#8217;s highly advisable to consult with a skilled bankruptcy lawyer who can provide tailored guidance based on your unique financial situation and the most current legal requirements.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Pros_and_Cons_of_Chapter_13_Bankruptcy\"><\/span><b>The Pros and Cons of Chapter 13 Bankruptcy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Chapter 13 bankruptcy is a reorganization bankruptcy that allows you to keep your property and catch up on your debt payments over a period of time. Here are some of the pros and cons of Chapter 13 bankruptcy:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros\"><\/span><b>Pros\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You can keep your property<\/b><span style=\"font-weight: 400;\">: In Chapter 7 bankruptcy, your non-exempt assets may be sold to pay off your creditors. In Chapter 13 bankruptcy, you can keep your property as long as you <\/span><b>make the required payments<\/b><span style=\"font-weight: 400;\"> under your repayment plan.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You can catch up on your debt payments<\/b><span style=\"font-weight: 400;\">: If you are behind on your debt payments, Chapter 13 bankruptcy can <\/span><b>help you catch up<\/b><span style=\"font-weight: 400;\">. You will create a repayment plan that will pay off your debts over a period of time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You can get a fresh start<\/b><span style=\"font-weight: 400;\">: Your remaining debts will be discharged after you <\/span><b>complete your repayment plan<\/b><span style=\"font-weight: 400;\">. That means that you will no longer be legally obligated to pay them.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cons\"><\/span><b>Cons\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>It takes longer than Chapter 7 bankruptcy<\/b><span style=\"font-weight: 400;\">:<\/span> <span style=\"font-weight: 400;\">Chapter 13 bankruptcy typically takes <\/span><b>three to five years to complete<\/b><span style=\"font-weight: 400;\">. Chapter 7 bankruptcy can be completed in three to six months.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>You have to make monthly payments<\/b><span style=\"font-weight: 400;\">: In Chapter 13 bankruptcy, you must <\/span><b>make monthly payments<\/b><span style=\"font-weight: 400;\"> to your creditors. These payments will be based on your income and expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strict Budgeting: <\/b><span style=\"font-weight: 400;\">Adherence to a court-approved payment plan and budget can limit financial flexibility<\/span><b> during repayment<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"File_Chapter_13_Bankruptcy_Today\"><\/span><b>File Chapter 13 Bankruptcy Today!<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It doesn&#8217;t mean you are weak if you need assistance filing for bankruptcy. Seeking advice from an experienced bankruptcy lawyer is one of the most effective ways to achieve a successful bankruptcy filing. In other words, hiring Cutler &amp; Associates, Ltd. is a wise decision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don&#8217;t hesitate to contact our skilled bankruptcy attorneys. With more than 30 years of combined experience, we can help you rebuild your life through bankruptcy as a financial legal solution. <\/span><span style=\"font-weight: 400;\">Get a free initial consultation today<\/span><span style=\"font-weight: 400;\">!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Resolve your debts through Chapter 13 bankruptcy When faced with insurmountable debts, you might consider filing for bankruptcy to get a fresh start. But one might wonder, how do you choose which chapter to file? Is Chapter 7 better than Chapter 13? Or when is Chapter 13 bankruptcy better than Chapter 7 bankruptcy? In this [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":5886,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"_links":{"self":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/5885"}],"collection":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/comments?post=5885"}],"version-history":[{"count":1,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/5885\/revisions"}],"predecessor-version":[{"id":5887,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/posts\/5885\/revisions\/5887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/media\/5886"}],"wp:attachment":[{"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/media?parent=5885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/categories?post=5885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cutlerbankruptcy.com\/wp-json\/wp\/v2\/tags?post=5885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}