Even if you can meet both Chapter 7 conditions, you will need to realize about brand new valuable gurus in Chapter thirteen. You could find almost every other tempting reasons to file for Part 13, instance decreasing the balance due with the home loan.
In lieu of A bankruptcy proceeding, the newest Part 13 trustee would not offer all of your possessions, although it’s “nonexempt” and you also can’t protect it which have a case of bankruptcy different. However, that doesn’t mean you’re able to continue significantly more possessions from inside the Section thirteen than just A bankruptcy proceeding. Instead of the trustee selling the home and you will purchasing creditors, you’ll shell out loan providers to store the fresh new taxable property from Section thirteen bundle.
- Afford the month-to-month mortgage repayment and arrearages from the bundle. You must have enough earnings to afford monthly mortgage repayment, also catch-up toward people a great financial arrearages. You could bequeath the brand new overdue part of the mortgage repayment more than the plan size. Read more
