In the beginning when individuals are seeking out bankruptcy relief they may not realize that there are different chapters of bankruptcy. There is in the Chapter 7 bankruptcy as well as the Chapter 13, and for businesses there is the Chapter 11.
Most prefer the Chapter 7 bankruptcy believing that all of their debts are going to be wiped clean and they will no longer have to deal with their creditors. Sometimes they may not qualify for this particular chapter and end up having to file under Chapter 13 bankruptcy.
The Chapter 13 Difference
This is more of a repayment plan that is structured and controlled by the courts rather than the discharge of all the debts. For some people they believe that this is not the ideal solution that they were looking for, however once everything is been put in place they find that it was a much better alternative than losing all their assets.
One very good benefit of the Chapter 13 bankruptcy is that it can help an individual to save their home from foreclosure, and gives them a chance to get caught up on their missed payments without the stress that they have been experienced to date. There may be some property that can be protected under a Chapter 13 bankruptcy that cannot be under a Chapter 7.
In most cases people under the Chapter 13 bankruptcy get to keep their vehicles, and this chapter will stop the repossession of the vehicle. It may also give an opportunity to cram down the car payments.
For those that have back taxes that are not able to be discharged, a more workable repayment plan can be made it through the Chapter 13 bankruptcy. These are just some of the major benefits that a Chapter 13 bankruptcy may offer. No matter which chapter you are filing for it is always wise to have the Council of a Houston bankruptcy attorney.