Creditors sometimes have good reasons to ask for permission to finish resolving an ongoing dispute outside of bankruptcy court.
Creditors sometimes have grounds to ask for permission to resume or start collection action against you in spite of your bankruptcy filing.
Chapter 7 gives you immediate protection against creditor collection actions. Chapter 13 protects you longer, if needed.
When a creditor may not have a valid lien, Chapter 13 gives you a good way to defeat that disputed lien and the claim against your property.
Bankruptcy can't write off certain kinds of debts. Chapter 13 enables you to prevent liens hitting your home from those debts.
Chapter 7 strengthens your hand with your secured debts. But Chapter 13 can be much stronger. Starting with a more potent "automatic stay."
Stop secured creditors from taking your property, unsecured debts from turning into secured ones. Keep or surrender collateral as you wish.
The recording of an income tax lien turns your home into collateral on the tax you owe. Stop the IRS/state from getting that huge advantage.
Catching up on property taxes benefits both you and your mortgage lender. Chapter 13 helps you pull this off under much less pressure.
Bankruptcy may give a fresh start not just to you, but also to your relationship with your co-signer.
The good news is that if you are behind on child or spousal support, with a resulting lien on your home, you can safely protect that home.
You know bankruptcy gives you an overall fresh financial start. But it can provide special fresh starts you may not know about.
It's way past Thanksgiving but Chapter 13 has many features that make you take notice and appreciate what they can accomplish.
Chapter 7 has many important features deserving appreciation.
Unpaid support is the highest priority of the "priority" debts. Chapter 7 frees up money to pay it. Chapter 13 buys you time to do so.