T-Boz Watkins got her Chapter 13 case tossed out of court for not following the rules of Chapter 13 bankruptcy.
While Jay Fleischman at ConsumerHelpCentral laid down the law, so to speak, in listing the rules, he didn’t remind us why they are worth following.
Chapter 13 bankruptcy: better than sliced bread
You cannot beat the deal in Chapter 13: you get to keep your assets, by making payments over as long as five years, to give your creditors what they would have gotten had you filed Chapter 7.
You get the protection of the automatic stay for the life of the plan, keeping creditors from reaching your money or your assets, while you make payments.
You get a bankruptcy judge who will enforce the rights you get in Chapter 13, including making all creditors honor your plan.
You get to change the terms of your plan if things change and you can’t live with the original terms.
You get the broadest discharge of debts available in bankruptcy.
Somehow, following the rules doesn’t seem so onerous. [Read more…]