Is Chapter 13 Bankruptcy for Individuals or Businesses?

What is Chapter 13 Bankruptcy? 

While Chapter 7 bankruptcy is about liquidating assets to pay off your debts before the remaining balances are met, Chapter 13 is about creating a court-ordered plan to pay off your debts. Bankruptcy attorney helps people in chapter 13 bankruptcy cases to get deserving rights. 

With Chapter 13 you will have at least some income preserved and you won’t exactly be on the street. But there is no reasonable way that you are going to pay everything you owe.

The Challenges of Filing Chapter 13 For Individual & Businesses 

While you might think it would be easier to get creditors to agree to a tight payment schedule than it would be to get you to pay off your debts. However, the opposite is often the case.

Fact: Two-thirds of all Chapter 13 filings are discarded or converted to Chapter 7.

Oftentimes, it’s best from the lender’s perspective to convert your filing to a Chapter 7 so that assets like your home can be liquidated to pay off your debts right away. 

This is often better for the lender, because they get money quickly and get out of trouble, rather than waiting for the low payments that the court will assign with a Chapter 13. It is better to hire a bankruptcy attorney who can help you to face such challenges. 

Why Chapter 13 is Usually Better Businesses and individuals 

So a Chapter 7 bankruptcy is better for the lender, but what’s in it for you? Not surprisingly, it’s Chapter 13.

It is usually the best option, if

  • You have significant personal assets and you don’t want to lose them in a liquidation. A good example is if you have a large amount of equity represented by the equity in your home. Conversely, if you are in serious trouble with your mortgage due to the real estate collapse, you probably won’t care if that asset is liquidated.
  • You have a steady income, but your unsecured debt payments are destroying your monthly finances. If all your money problems are caused by too many credit card bills and delinquent card bills, adjusting your payment schedule can put you in a better place without risking your assets.

In a Chapter 13 bankruptcy, you try to repay your creditors instead of eliminating your unpaid debts. You propose a repayment plan to make payments to creditors over 4-5 years.

If your current monthly income is lower than the state median income for the same family size, the plan will last for 3 years. If your current monthly income is above the state average, the plan will be for 5 years. In such situations people hire bankruptcy attorney to help them during legal trials. 

A judge reviews the reimbursement plan and decides whether to approve it. If the plan is approved, payments are made to the servicer, who in turn pays creditors who submit a proof of claim. The proof of claim will list the type of debt and the amount of the debt. You can keep some assets that you would have lost if you filed for Chapter 7

In Chapter 13 bankruptcy cases you must pay your creditors in full if you can. If that is not possible, you must pay all of your disposable income for 4-5 years. Disposable income is what remains after paying necessary living expenses.

After the repayment plan is completed, you will get a discharge of your debts. You must pay in full during the plan certain back taxes and any child support obligations. Also, some types of debts will not be erased.

It is essential to speak with an attorney, if possible, before filing for Chapter 13 bankruptcy, because creating a payment plan is a difficult thing to do.

Eligibility of Chapter 13 Bankruptcy for Individuals & Businesses 

You can file for Chapter 13 bankruptcy as long as:

  • Unsecured debts are less than $ 419,275
  • Guaranteed debts are less than $ 1,257,850

You cannot file a Chapter 13 bankruptcy if, during the 180 days prior to filing a new bankruptcy, a previous bankruptcy was dismissed because:

  • You have not followed a court order; or
  • You have requested the dismissal.

Also, within 180 days of filing bankruptcy, you must receive credit counseling from an approved credit counseling agency. In case you need legal help consult a bankruptcy attorney to help you in your case. 

What to Watch Out for Before Filing for Bankruptcy

Declaring bankruptcy is not a good idea for everyone. This is a serious step, and you should only file bankruptcy if you know it will help you. If possible, you should speak to a lawyer before filing for bankruptcy.

Reasons for Filing Bankruptcy:

  • Debts can be eliminated (erased), giving you a fresh start
  • Bankruptcy ends wage garnishment and collection agency harassment
  • Foreclosures and liens stop and cannot proceed unless the court allows it
  • You can keep the exempt assets
  • You can stop the outage, or restore service after paying a reasonable deposit, and then pay only for current service
  • Employers and public agencies cannot retaliate against you for filing bankruptcy 
  • If your driver’s license has been suspended for failing to pay a discountable debt in bankruptcy, you may be able to get your license back.

Reasons Not to File Bankruptcy:

  • Some debts, such as student loans, may not be canceled (written off)
  • Bankruptcy stays on your credit rating for 7 to 10 years
  • Getting a loan can be more difficult or more expensive
  • It can cause tensions in relationships with some creditors and co-signatories

If you are not sure whether to file a case or not, it is better to hire a bankruptcy attorney.

Hope this article helps you to know about Chapter 13 Bankruptcy for individuals and businesses!

You may also like


Marvel Services – With Sun Control Films, Get Plenty Of Benefits!


The latest generation sun control film gives you many advantages on car windows or building glazing. Sun control films stop UV rays and heat, the overflow of light responsible for glare while installing a protective screen (sun control) against prying eyes and break-ins.

If sun control films installed on the windows of a car or a building represent a specific cost in use, the apparent increase in daily comfort makes the difference. And, by opting for pre-cut ( click here ) or pre-thermoformed ( click here ) kits of sun control films for tinted windows, you have plenty of advantages since sun control films stop the UV rays responsible for sunburn and sunburn—degradation of materials, but also heat and dazzling light.

Sun control films add a real boost in comfort in terms of tranquility to all these classic advantages by establishing a barrier against prying eyes. In terms of security, sun…

Read More

Details You Should Know About Fundamental Analysis Course


Comprehension of stock market investment techniques necessitates a thorough understanding of fundamental analysis. Financial security’s intrinsic value is determined using this approach.

A security’s intrinsic value is determined by looking at its economic and financial characteristics. Changing economic conditions at the macro and micro levels, such as the status of the economy, industry trends, and firm management, impact its value.

Financial instruments can be classified as either undervalued or overvalued based on their inherent worth. On the other hand, the fundamental analysis predicts the direction of the price.

During a fundamental analysis, revenues, profits, and information about the issuer, future growth, profit margins, return on equity, and other critical firm statistics are examined. Use these factors to undervalue or overvalue the company in your financial accounts. In addition, quantitative and qualitative aspects of the study are included in the core process.

The Quantitative part of Fundamental Analysis deals with the company’s financial accounts…

Read More

The increasing importance of Entrepreneurship By Newspiner


An entrepreneur is an individual who starts the business with the least resources and plans and is responsible for all the ups and downs that can occur in the firm. The business idea relates to uniqueness and innovation. An entrepreneur is seen as the innovator, finds new ideas, and creates sources for income.

The person who takes up the profit is also responsible for the loss and the risk factors. Therefore, the entrepreneur is the person, entrepreneurship is the process, and the enterprise is the outcome. If you have a detailed view of the things related to business and its related fields, then you can submit guest post business category to give your viewpoints to the online audience.

Entrepreneurship assists Economic Growth

New services and products make a great impact on economic growth. Business is all about simulation in which…

Read More

Algorithmic Trading: How To Use It? Algorithmic Trading Strategies


An algorithm or black-box trading system uses powerful mathematical tools to facilitate and anticipate transaction decisions in the financial trading markets using complex algorithms. The decision-making process in this type of trading system is extremely fast because there is no need for human intervention. In the stock market, there are several significant institutional investors.

These investors well utilize algo trading. The notion is heavily reliant on technology and has just recently become popular. To help investors make money, many black-box trading platforms are available.

Algorithmic trading tactics like the ones listed below can be quite profitable for stock market investing. Please take your time and read through each of the suggestions.

Concentrate on the most important aspects of automated trading

  • Quantitative analysis: The importance of quantitative analysis in Algo trading cannot be overstated. To master Algo trading, you need to work with statistical packages and time series. You’d be expected to conduct research…
Read More

3M Nomad Mats – Best Entrance Mat Which Keep The Floor Clean


Do you think that the mat used for different physical activities is the same? Not all carpets are the same. What kind of gym mat should you buy? The mats come in various thicknesses and sizes, depending on their function. Different kinds of mats are made of different materials.

You can find mats in a variety of sizes. It is essential to determine where the carpet will be used in your home. In general, it is best to order a mat a little larger than you need. That way, you won’t have to worry that you can’t accommodate a certain trick or routine. The large models are recommended above 1.80 m in height, whether for Yoga, Pilates or Gymnastics.

What is a nomadic rug?

Nomadic rugs are made by nomads from the East, between the mountains in Iran…

Read More

Price Action Strategies: A Complete Investor’s Guide


If the analysis of the price action tells you that the price will go up, you can open a long position or, if you think the price will go down, you can choose to unlock a short post on the asset.

What does it mean for price action to be “pure” or “raw”?

Raw price action (also known as pure price action) means that you trade based solely on the prices that you can see. It’s like driving with the browser turned off.

What are price action signals?

Price action signals (sometimes called price action patterns or price action triggers) can be easily recognized in a market and can be used to predict its behaviour in the future. Experienced investors can identify these signals with the naked eye by recognizing specific shapes or repeats in past performance.

What is the difference between price action, indicators, and technical analysis?

Price action indicators are flashes of activity…

Read More

Marvel Services – How To Choose A 3M Floor Mat For Different Area?


Over 80% of dirt is introduced into buildings through shoes. An entrance mat is more than a decorative element; an entrance mat is an effective bulwark against exterior dirt.

Location, frequency of use, materials, standards, customization… This article will help you choose the most suitable entrance mat to protect the floors of your premises.

The dimensions of the entrance mats

For adequate protection of the floor, it is recommended to install

With such a length through 3m floor mats, each foot is in contact with the ground at least three times, making it possible to remove the majority of the dirt and absorb the humidity present on the soles of the shoes.

So your floors will need to be cleaned less often. If you do not have such a length in the entrance hall of your premises, you can distribute it over three different zones: the exterior, the interior, and the pedestrian zones.


Read More

Price Action Strategies: A Complete Investor’s Guide


Price action in trading explores the performance of a security, commodity or currency to foreshow what it might do in the future. If the analysis of the price action tells you that the price will go up, you can open a long position or, if you think the price will go down, you can choose to unlock a short post on the asset.Trading Psychology course give tips about theTrading.

Below are few things one can learn in Trading Psychology course:

What does it mean for price action to be “pure” or “raw”?

Raw price action (also known as pure price action) means that you trade based solely on the prices that you can see. It’s like driving with the browser turned off.

What are price action signals?

Price action signals (sometimes called price action patterns or price action triggers) can be easily recognized in a market and can be used to predict its behaviour…

Read More