Here’s a scenario showing how Chapter 13 solves problems that Chapter 7 doesn’t solve in dealing with a creditor’s disputed lien.
A Creditor’s Unexpectedly Unenforceable Lien
For a debt to be secured, the creditor has to go through the right legal steps. Otherwise you don’t have to pay the debt.
A Creditor Not Enforcing its Lien
Sometimes, even if what you bought is legally collateral on a debt, you can just write off and not pay the debt yet keep what you bought.
Crucial Question: Can I Exclude a Creditor from My Bankruptcy Case?
In general, you must include every creditor in your bankruptcy documents. Most concerns you may have about this can be satisfied.
Crucial Question: If I File Bankruptcy Who Will Be Told, Who Can Find Out?
A bankruptcy filing is a matter of public record, so anybody can find out about it. But mostly just your creditors will know.
Chapter 7 vs. Chapter 13–Debts Secured by Your Previously Owned Household Goods and Tools of Trade
What happens to the personal possessions and tools of trade that you gave as collateral on a loan?
The Chapter 13 Debt Limits
Too much debt can disqualify you from filing under Chapter 13.
I Make Too Much for Chapter 7, Owe Too Much for Chapter 13, So Now What Do I Do?
If you don’t qualify for either Chapter 7 or 13, do you have to do a very expensive Chapter 11 reorganization? Or could you still qualify after all?
Advantages of Chapter 13 After Stopping Repossession of Your Car or Truck
Straight Chapter 7 bankruptcy gives very limited help if you’re behind on your vehicle and need to keep it. And Chapter 13? Provides much more help.