This is not to suggest that Ch. 13 repayment plan does not have merit. Quite the contrary, a Ch. 13 plan can accomplish many significant financial advantages, if properly planned, prepared and presented by a competent consumer bankruptcy attorney.

Among many of the advantages of Ch. 13 are:

?    Stop a foreclosure on a home, and maintain a payment plan to cure the arrears.
?    Stop a repossession on an automobile, and re-write the interest, and some times the principal balance of the loan
?    Stop a lawsuit or a wage deduction against a paycheck, and pay all, some, or none of the creditors Claim.
?    Remove a wholly unsecured junior deed of trust from the real property, such as a home equity loan, and pay some or none of it back.
?    Force the IRS or other taxing authority into a payment plan, with no further penalties nor interest, in most cases.
?    Re-structure the payment on student loans in an amount that is likely more affordable on a month to month basis.
?    Allow for the return of collateral that is no longer desirable nor useful, such as a timeshare, motor home, boat, or other expensive item no longer needed.
?    Force a repayment plan for back child support arrears.
?    Force a repayment plan for back court fines, tickets, or restitution.
?    Provide for the protection of a co-signor from collection actions.
?    Consolidate all these obligations into a manageable monthly plan payment.

There are other subtleties in the practice of Ch. 13, and one must consult with an experienced consumer bankruptcy attorney to weigh the pros and cons of Ch. 13 repayment plan vs. Ch. 7 ‘straight’ bankruptcy. With the proper counsel, one can leverage a Ch. 13 filing to create a significant financial savings that will not be available in Ch. 7. Remembering, though, that both are chapters of bankruptcy under the Bankruptcy Code.

John C. Colwell
Attorney at Law
Debt Relief Legal Clinic
San Diego, CA
877-663-3287
www.debtclinic.com
Member, Board of Directors, NACBA
www.nacba.org