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Q.What are some of the advantages to the Chapter 13 bankruptcy?
A.Chapter 13 debtors often keep property they would have lost had a chapter 7 bankruptcy petition been filed. In a chapter 7 bankruptcy, the debtor must generally turn over all non-exmpt property and all secured property (property subject to a security interest such as an appliance, car, or home) to the bankruptcy trustee, unless the debtor can reach an agreement with a secured creditor. In a chapter 13 bankruptcy proceeding, secured creditors do not have such control. Consequently, Chapter 13 debtors who make their required payments under a court approved plan usually keep their non-exempt, non-secured property and their car, home, and other secured property even if the creditor wants the property returned.
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