Qualifying for Chapter 13

QUALIFYING FOR CHAPTER 13 BANKRUPTCY

If you are above the median average household income and you have certain assets that you want to keep, a Chapter 13 bankruptcy might be in your best interest. Also, there are certain types of debt that you can discharge in a Chapter 13 bankruptcy that are not dischargeable in a Chapter 7 bankruptcy. For example, court ordered payments to an ex-spouse that are not designated as support payments might be discharged in a Chapter 7 bankruptcy, whereas they might be discharged in a Chapter 13 bankruptcy.

If you’re wondering if Chapter 13 bankruptcy is right for you, contact the Cook Law Firm today!

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The Cook Law Firm wants you to know that if you’re suffering due to debts you can’t seem to overcome, bankruptcy could help. While there are debts that are non-dischargeable like child support or student loans, bankruptcy is effective at resolving unsecured debts and correcting your financial situation.

As an individual, know there are two bankruptcy options available — Chapter 7 and Chapter 13. In Chapter 7 debts are paid by seizing non-exempt property and using excess income to resolve debts. Chapter 13, on the other hand, allows you to keep your non-exempt property on the condition that you adhere to a court-ordered payment plan.

Curious about exempt versus non-exempt property?