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When should I choose Chapter 13?
Home » Accounting » Business Bankruptcy » When should I choose Chapter 13?As briefly stated earlier, a Chapter 13 filing allows the debtor to pay off nearly all or genuinely all of his or her debts while giving the debtor an elongated amount of time to do so. The business keeps all property.
The debtor is protected from creditor’s actions of collection. A Chapter 13 can be filed again and again and protects co-signers from being burdened with the debtor’s debt under specific circumstances.
Just like Chapter 7 there are disadvantages to a Chapter 13 filing as well. For example, a person doesn’t have a lot of free money at his or her disposal since post-bankruptcy income goes directly towards debt payment. Also, not all debts are eradicated. There is also a limit to the amount of debt that can be paid (under one million dollars). The extended amount of time to pay off the debt can become a dark cloud of stress hanging over you for many, many years.
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- What are the circumstances in which a business should decide to file for Bankruptcy?