There is not a week that goes by when we are not asked by a client, "Can I save my house from foreclosure by filing for Bankruptcy"? The answer is , well maybe. Yes, I know that sounds a bit ambiguous however there are many laws working for us and against us. Our best strategy is to look at all of the facts and see if
you can possibly file for chapter 13 Bankruptcy. So here is the deal...
When is Chapter 13 preferable to Chapter 7 for a Debtor?
Chapter 13 is usually preferable for a person who (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexempt property or has valuable exempt property securing debts, either or which would be lost in a Chapter 7 case, (3) is not eligible for a discharge under Chapter 7, (4) has one or more substantial debts that are dischargeable under Chapter 13 but not under Chapter 7, or (5) has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so.
How does Chapter 13 differ from a private debt consolidation service?
In a Chapter 13 case, the Bankruptcy Court can provide aid to the Debtor that private consolidation services cannot provide. For example, the Court has the authority to prohibit creditors from attaching or foreclosing on the Debtor's property, to force unsecured creditors to accept a Chapter 13 plan that pays only a portion of their claims, and to discharge a Debtor from unpaid portions of debts. Private debt consolidation services have none of these powers.
Check out our website www.shankmanlegal.com to learn more, or give us a call, knowledge is power! 207.786.0311
Neil S. Shankman Bankruptcy Attorney, Yarmouth, Lewiston & Brunswick, Maine
