Why file Chapter 13 bankruptcy?

It's true that a petition under Chapter 13 is relatively easier to qualify for compared to Chapter 7. However, there are some basic requirements that the courts will test for, such as a steady source of income; the level of disposable income you earn; and the total amount of debt you have accumulated, before granting your petition. Only a qualified Chapter 13 bankruptcy lawyer in Washington DC can guide you through this process.

So why would you consider Chapter 13 in the first place? That's a question you and your Chapter 13 bankruptcy lawyer in Washington DC must discuss in detail before going down this route. As s/he will explain, while the process for Chapter 13 is generally more complex than Chapter 7, it might be beneficial  to you based on your specific circumstances. Here are some reasons that your lawyer might discuss with you.

You need to confide with your Chapter 13 bankruptcy lawyer in Washington DC whether you are late making regular mortgage payments or if your house is in foreclosure. In such a situation, Chapter 13 could grant you a 3 to 5 year period to meet your payments while stalling the foreclosure process.

Your Chapter 13 bankruptcy lawyer in Washington DC could also view Chapter 13 as a viable option if your car is about to be or has already been repossessed. A successful Chapter 13 petition can stop a vehicle from being repossessed or can help you get a previously repossessed car back.

When your wages are being assigned or garnished, your Chapter 13 bankruptcy lawyer in Washington DC could use Chapter 13 to stop such garnishments and prevent any lawsuits that might be pending against you from proceeding further.

One common use of this law, as your Chapter 13 bankruptcy lawyer in Washington DC will no doubt discuss with you, is as part of a debt consolidation strategy. Through a Chapter 13 petition you can consolidate several non-dischargeable and government debts into a repayment plan to help you discharge them over a 3 to 5 year time-frame. Such debts include student loans, overdue child support payments, parking tickets and state and federal taxes.

There may be other reasons for choosing Chapter 13 over some of the other Chapters - including Chapter 7 or Chapter 11, such as: Suspension of your driver's license;  Excessive amounts of un-secured debt; The need to protect a co-signatory from mutual creditors; The need to protect some of your accumulated assets, and finally if you are ineligible to file under one of the other Chapters.

Your Chapter 13 bankruptcy lawyer in Washington DC will need to discuss your financial status with you in detail, before advising which Chapter to file under, and specifically which of the Chapter 13 options to invoke to grant you the best possible protection.