long-term home mortgage debts by making a reasonable scheme of payments over a rational time frame.

 

4. Debtors get to keep their properties, whether exempt or non-exempt.

 

Unlike in the Chapter 7 bankruptcy proceedings, Chapter 13 guarantees debtors full ownership on their properties whether it be classified as exempt or non-exempt. Trustees in Chapter 13 solely act as disbursing agents, collect payments from debtors, and eventually distribute them to creditors involved. Because this type of proceeding gives debtors a reasonable time frame to pay back creditors, there is absolutely no need to acquire properties so as to be considered as payment of debts.

 

5. Debts that are not included in a Chapter 7 discharge can be slashed down in a Chapter 13 plan.

 

There are certain debts that are not included in a Chapter 7 discharge. One kind of debt not included in a Chapter 7 discharge is tax. In this case, a debtor can opt for a Chapter 13 proceeding so as to remove some tax liabilities including those that result from late filing, not filing, and fraud.

 

6. Chapter 13 bankruptcy can be filed repeatedly.

 

Unlike Chapter 7, Chapter 13 has no time limit for filing a second Chapter 13 bankruptcy case.

 

7. Because of the willingness of debtor to pay back all the debts, an extensive discharge is given by Chapter 13.

 

With the willingness of the debtor to pay back all his debts to his creditors, Chapter 13 ensures a broader discharge as compared to what Chapter 7 can give. Here, the debtor may request the court to grant a "hardship discharge" from which the debtor is discharged from his debts even after failing to comply with the plan payments. This is, however, applicable to debtors whose failure to complete the payment plan is due to situations beyond the debtor's control such as accidents.

 

8. Any co-signers are protected so long as Chapter 13 provides a plan for full payment.

 

Unlike in Chapter 7, wherein your co-signor of a loan is stuck with your debt, Chapter 13 guarantees the other party full protection from the creditor's further collection efforts as long as the proceedings will incorporate an ideal payment plan.

 

9. Chapter 13 is kinder on the credit score.

 

Because the debtor is willing to pay back and is capable to do so even if it takes a longer period of time, this type of bankruptcy eventually makes a debtor's credit rating fair enough to be considered on future credit evaluation.

 

10. In Chapter 13 bankruptcy cases, debts/creditors can be separated by class for easier payments.